"I've not repaid a penny of my £70K student loan since leaving Britain"
Over 70,000 British graduates abroad are in arrears on student loans, with no legal action taken by the SLC since 2017, raising concerns about enforcement and repayment effectiveness.
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Many British graduates living abroad are defaulting on their student loans, with at least 70,000 individuals in arrears as of April 2024, according to the Student Loan Company (SLC). This represents an 18.6% increase from the previous year. The average student loan debt for new borrowers is approximately £48,470, and those who have moved overseas are still legally obligated to repay their loans if they earn above a certain threshold. However, the SLC has not pursued legal action against overseas borrowers since 2017, raising concerns about the effectiveness of their collection efforts. Graduates like David, who moved to France, report not repaying their loans despite earning above the repayment threshold, citing high interest rates and a lack of enforcement as reasons for their noncompliance. The SLC has referred cases to a customer service agency, which does not actively recover debts. The repayment thresholds vary by country, with some graduates facing higher monthly payments abroad compared to the UK. The SLC claims that most borrowers comply with repayment terms, but the lack of significant action against defaulters raises questions about the system's fairness and effectiveness.
- Over 70,000 British expats are in arrears on student loans.
- The SLC has not taken legal action against overseas borrowers since 2017.
- Graduates living abroad may face different repayment thresholds based on local cost of living.
- Many graduates report no intention of repaying loans due to high interest rates and lack of enforcement.
- The SLC relies on external agencies for customer service rather than debt recovery.
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6 commentsSometimes you just have to admire the aesthetical and artistical aspects of this aggressively predatory world created by fine humans such as Thatcher, Reagan, Clinton, Jack Well and Carl Icahn. This human meat-grinder system is surely a beast to behold: "Don't wait, get them while they are young! it's the most efficient thing to do, slave them with compound interest as early as possible! why wait until they start a family and get a mortgage to fleece them?
I know someone who did the exact same thing in the US. The loan was from the late 70s, and the loan was around 70K USD. By around the 90s or so she was blacklisted from decent jobs due to here credit report.
She finally paid it off in the early 00s, but the damage was done. So be careful with this. I do not know how things work in Europe, but I would not be surprise if the something like this will start happening in Europe.
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The August 2024 Household Debt and Credit Report shows rising credit card delinquencies at 10.93%, increased bank provisions for losses, low student loan delinquencies, and concerns about the economy's resilience.
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