Full Breakdown
Foreign Nationals Account for One-Fifth of UK Student Loans, Raising Repayment Concerns
8/8/2026, 8:24:36 PM
The Scale of Foreign Student Loans
Data from the Student Loans Company show that non-British citizens received roughly £4 billion in tuition and maintenance loans in the most recent academic year, representing about 20 percent of all lending. EU citizens hold the majority of these loans, with Romanians alone taking one in 20 first-time loans. Approximately 195,000 of the 239,000 foreign loan recipients have settled status under the post-Brexit arrangement. Over the past decade the share of loans to non-UK students has risen from 10.2 percent to 19.3 percent. Research compiled by Conservative MP Neil O’Brien indicates foreign borrowers are around 25 percent less likely to repay than British students, suggesting a potential loss of £1.2 billion to £2.2 billion annually.
Policy Background and Eligibility Rules
Student loans are generally unavailable to foreign nationals studying in Britain, but an exemption permits EU citizens with settled status to apply. The DfE also notes the Student Loans Company can pursue enforcement action through debt-collection agencies.
Political Criticism and Calls for Reform
MP Neil O’Brien questioned Home Office practices, asking, “Why are the Home Office allowing these implausibly late claims, and on what basis are they still being granted?” — Mr O'Brien — Mr O’Brien. He warned that continued settled-status claims could sustain the flow of EU student loans.
Government Response
Former Education Secretary Bridget Phillipson acknowledged a “disproportionate” number of Romanians receiving loans and pledged action against franchised colleges that facilitate loan abuse. The DfE spokesperson reiterated strict eligibility requirements and ongoing efforts to close regulatory loopholes.
Potential Fiscal Impact
The combination of rising foreign loan uptake and lower repayment likelihood underscores the pressure on the student-finance system and the broader taxpayer base.
