Private investigators have been called in to track down hundreds of overseas graduates from UK universities who have gone missing owing millions of pounds in loans bankrolled by the British taxpayer.
The Student Loans Company (SLC) has been forced to take dramatic measures to claw back its money after the amount owed by European Union graduates who are not repaying their tuition-fee loans rose to more than £50m in five years.
Hundreds of EU nationals who have returned home and reached the income threshold at which they should be paying back their loans have slipped into arrears. Many have failed to provide any salary details, so that officials cannot even start the process of reclaiming their debts.
But many more, who are responsible for loans totalling £41m, have not revealed crucial information about where they are living, whether they are working, or how much they are earning.
MPs complained yesterday that a failure to maintain tight controls over EU students had allowed them to disappear back home, leaving the British taxpayer to pick up the tab for their education. The Labour MP Frank Field said he would urge the National Audit Office to investigate the system of keeping tabs on EU students. “This situation has turned the loans into a grants system for many EU students,” he said.
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