One in four European Union citizens who study in England go home without paying a PENNY of their student loans – The Sun
It has left UK taxpayers having to pay more than 130million for their unpaid debts according to a fresh analysis of Student Loans Company figures
ONE INfour EU citizens who study in England go home without paying a penny of their loans, the Sun can reveal.
It has left UK taxpayers picking up a bill of more than 400million for their unpaid debts.
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MPs said it exposed one of the many hidden costs of EU membership and demanded Theresa May use Brexit to stop taxpayers being ripped off.
Students from across Europe who choose to attend English universities get access to the same taxpayer-funded loan as British citizens.
But analysis of figures from the Student Loans Company reveal 18,600 have not paid back a penny and authorities cannot track them because they have returned overseas.
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The 25 per cent of EU graduates who fail to repay loans compares to an overall rate of just 2 per cent.
Furious Tory MPs have demanded Theresa May recoup the money owed by EU graduates in Brexit negotiations.
Jacob Rees-Mogg said there was no reason for EU students to be subsidised by UK taxpayers.
And Philip Davies told The Sun: This is an absolute scandal and shows the huge hidden cost of our membership of the EU to go on top of our 10billion a year membership fee.
Now we are leaving the EU the Government needs to ensure that we stop taxpayers being ripped off in this way.
The number of EU graduates placed in arrears for failing to repay loans reached 8,600 last year. A further 10,000 are not repaying because they are unknown to UK authorities.
Nick Hillman, director of the Higher Education Policy Institute, said EU students who default on their student loans should be stopped at the border and treated in the same way as benefit cheats and tax evaders.
He called on ministers to include measures in the Higher Education Bill to introduce an online repayment scheme to make it easier for graduates to settle their debts. He said the Treasury could save 22 for every 1 spent if ministers copy a scheme brought in by New Zealand.
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Mr Hillman told The Sun: Tackling it is not rocket science. We should copy New Zealand, which has introduced carrots and sticks to raise repayment rates.
If you enter New Zealand owing money, you can be arrested at the border. They also have easy online repayment systems and hardship provisions for those who really cannot afford it.
He added: If Ministers are not prepared to amend the Higher Education Bill currently in the House of Lords, then Philip Hammond must tackle the issue in his next Budget. For every 1 spent chasing repayments from people overseas, he could get 22 in repayments.
That is an exceptionally high rate of return, much higher than other government policies.
David Kurten, Ukip's Education Spokesman,said: The scandal of EU students taking student loans from the British taxpayer and returning home without paying has gone on for years."
He added: "The scale of this scandal has now been revealed at over 400 million.
"Ukip have been saying for years that all students who are foreign nationals, including those from the EU, should pay their own University fees up front if they are studying in Britain. This is simple common sense.
"This is money which should all have been recovered, and could have paid for 15 brand new secondary schools.
"There is no excuse for this waste to continue: British money should be spent first on British people and services in this country, particularly in skills training for young people which has been neglected for far too long."
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One in four European Union citizens who study in England go home without paying a PENNY of their student loans - The Sun