Particle.news

One in Five UK Student Loans Went to Non‑UK Nationals, New FOI Data Shows

New figures point to settled‑status eligibility and weaker overseas repayment as drivers of a possible multi‑billion‑pound taxpayer exposure.

Overview

  • The figures compiled by MP Neil O’Brien and released on Friday show about £4 billion, or roughly 20% of last year’s student lending, was paid to 239,000 non‑UK nationals.
  • Around 195,000 of those recipients hold EU settled status under the post‑Brexit scheme, a rule that lets eligible EU citizens and some family members access UK loans if residency tests are met.
  • Repayment data in the FOI responses shows non‑UK borrowers were less likely to make payments last year (51%) than British borrowers (68%), with some nationalities reporting even lower rates.
  • Analysts and MPs say the repayment gap could expose taxpayers to roughly £1.2 billion to £2.2 billion a year in added cost, though estimates vary depending on assumptions about future repayments and mobility.
  • The Education Secretary has placed the issue at the top of her in‑tray and MPs have demanded an urgent review, while the Department for Education and the Student Loans Company say strict eligibility checks exist and enforcement options remain available.