The UK government is attempting to trace around 42,000 former students from European countries who owe an estimated £893 million in student loans after losing contact with authorities.
Latest figures from the Student Loans Company (SLC) show it is currently tracking 121,000 borrowers worldwide with outstanding loan balances totaling £3.4 billion.
Many of these graduates studied at UK universities using government-backed loans for tuition fees and living expenses before moving overseas.
According to the SLC, around 15,000 borrowers are believed to be living in Australia, 7,600 in the United States, and thousands more in Spain, Ireland, the UAE, Bulgaria, Romania, and China.
The agency said tracing graduates abroad remains more challenging than within the UK, where officials can access tax records to monitor repayments. To improve enforcement, authorities have established links with agencies across Europe and other countries.
The SLC stressed that not all borrowers with outstanding balances are required to make repayments immediately, as some may be unemployed or earning below repayment thresholds.
Critics have urged the government to strengthen enforcement measures, arguing that taxpayers ultimately bear the cost of unpaid student debt.
However, the SLC maintained that the vast majority of borrowers comply with repayment rules and that more than 90% of customers had verified residency and employment status during the 2024-25 financial year.
The agency reiterated that moving overseas does not exempt graduates from their obligation to repay student loans when their income exceeds the required threshold.
