Is the student loan system being milked by European students?
As news that more than 70% of students who took out student loans have yet to make any repayments is released into the public domain, there are serious concerns over potential bad debt problem for the UK Student Loans Company. The Student Loans Company was set up by the authorities to administer low-interest loans across the UK specifically for further education. Out of 2240 students who should have begun repayment of their loans, 1580 are as yet unaccounted for.
There is a significant concern that while UK students have their payments deducted at source once they begin employment this is not the case European students who have to make the arrangements themselves. This potential loophole in the system could be very costly for the UK authorities when you consider that over £130 million has been borrowed by students entering further education in the UK.
While the UK government has yet to announce any specific changes to the Student Loans Company there is a general consensus that something needs to be done sooner rather than later. Tracking down students who have moved back to their European homeland may be expensive but it is something the UK authorities need to consider. The system if left unchecked is literally on the verge of collapse.
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