Question to the Department for Education:

To ask the Secretary of State for Education, what steps his Department is taking to prevent foreign students from not repaying outstanding loans in respect of private university fees.

An eligible student qualifies for financial support in connection with a designated course subject to and in accordance with these the Education (Student Support) Regulations 2011 (as amended). To meet the requirements for support, a student should have settled status or a recognised connection with the United Kingdom: http://www.legislation.gov.uk/uksi/2011/1986/regulation/4/made.

The Student Loans Company (SLC) has arrangements in place to collect repayments from borrowers who move away from the UK and establishes a repayment schedule based on the borrower’s income and provides information on the methods of repayment available.

If borrowers based overseas fail to remain in contact with the SLC, the SLC will set up a fixed repayment schedule and place those borrowers in arrears. Borrowers with post-2012 loans who have not remained in contact with the SLC are charged the maximum interest rate of RPI+3% until they get back in touch. Further action, including legal action, can then be taken to secure recovery.

The department published a Joint Repayment Strategy in February 2016, which sets out how action will be taken to trace borrowers and act to recover loans where avoidance or evasion is identified. This publication can be found on the government’s website.