The Government will prosecute those who don't pay student loans.

Pay student loan on time or face prosecution.

‘The Government has warned it will prosecute graduates from across the UK and overseas who fail to pay their student loans back on time as part of a new strategy.
In a statement from Minister for Universities Jo Johnson to the House of Commons, the politician said the new plans were needed to ensure the repayment system remains “fair, robust, and efficient” as the higher education system sees more people gain entry than ever before, due to a cap-lift on numbers.

He described how the Government is committed to maintaining the UK’s “world-class education system while living within its means,” and said: “As more loans are issued to new students each year, it is vital the repayment process is robust, convenient for borrowers, and working efficiently to ensure the sustainability of the student finance system, and value for money, for the taxpayer.”’ - Independent

‘The strategy sets out how the government will improve its ability to trace borrowers and pursue and recover outstanding student loan debt. The vast majority of borrowers repay their loans through the UK tax system, using either or both PAYE or self-assessment processes. But for borrowers who move overseas, the Student Loans Company has to collect repayments directly from the borrower.

The document outlines how the UK will work with the government of Australia – the most popular foreign destination for British university leavers – to share data on expatriate graduates in order to collect debt.

The SLC does not publish details of the degrees held by untraced debtors or their courses, but it has identified Australia as the country with the largest number of former British students with current loans.’ - Guardian

‘Universities in England and Wales can charge students up to £9,000 a year for tuition, and undergraduates can take out a loan from the Student Loans Company (SLC) to cover these fees.
The SLC tracks earnings and alerts employers once graduates are eligible to start repaying.

Employers then deduct the correct amount from salaries and pay the loan on behalf of employees. The self-employed though are responsible for paying the correct amount.’ - BBC
‘Previously the government and the SLC have run data-sharing pilot projects with the Netherlands and Sweden, with each country sharing details of borrowers believed to be in each other’s countries.

About 123,000 of the SLC’s debtors live overseas, out of 5.5 million people who have loans. Those overseas owe a total of £1.5bn, of which just £368m in debt belongs to “unverified” British borrowers for whom the SLC does not have contact details. More than 72% of UK borrowers overseas had up-to-date contact details on file last year.

But the SLC says: “Not all unverified borrowers will owe money. While some do, others may not be working, may be in receipt of benefits, not earning enough to repay or may be between jobs.”’ – Student Times

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