EUROPEAN Union students in Britain should be treated like criminals and held at the border if they fail to repay their loans, a think-tank has claimed.
Students from other EU member states owe a staggering £1.3billion in British student loans, which has risen from £958million last year.
And students who refuse to pay should face tough criminal sanctions, according to the Higher Education Policy Institute (HEPI)
HEPI has called for students to be arrested like tax dodgers or benefit fraudsters if they return to Britain after leaving without paying their loans.
The think-tank wants the sanctions to be written into UK law this year as part of the Higher Education and Research Bill.
Around 8,600 former EU students owe money after graduating because Britain cannot force those who move abroad to pay their loans off.
HEPI director Nick Hillman said: “Tax evasion and benefit fraud rip taxpayers off.
“Defaulting on your student loan could be regarded as just as bad. Yet it is fairly common among both Brits and EU citizens who study in the UK before working abroad.
“Given that the £9,000 fees regime is now maturing and that postgraduate loans are being introduced, a new repayment regime for those living overseas should be a more urgent priority than ever before.”
HEPI examined ways to eradicate student loan payment evasion in New Zealand, finding measures were cost efficient and effective.
Sam Cannicott, who wrote the report, said New Zealand has a “no nonsense approach” to collecting student loan repayments from graduates who are now overseas.
Those who fail to make repayments face arrest at the country’s border while New Zealand has also imposed automatic repayments on graduates if they still live there, regardless of income.
But in Britain’s system, graduates only have to repay loans once they earn more than £21,000 a year.
Cannicott, who works at New Zealand’s government statistics body, said the country’s approach highlights “the timidity of the steps taken in the UK”.
And students who refuse to pay should face tough criminal sanctions, according to the Higher Education Policy Institute (HEPI)
HEPI has called for students to be arrested like tax dodgers or benefit fraudsters if they return to Britain after leaving without paying their loans.
The think-tank wants the sanctions to be written into UK law this year as part of the Higher Education and Research Bill.
Around 8,600 former EU students owe money after graduating because Britain cannot force those who move abroad to pay their loans off.
HEPI director Nick Hillman said: “Tax evasion and benefit fraud rip taxpayers off.
“Defaulting on your student loan could be regarded as just as bad. Yet it is fairly common among both Brits and EU citizens who study in the UK before working abroad.
“Given that the £9,000 fees regime is now maturing and that postgraduate loans are being introduced, a new repayment regime for those living overseas should be a more urgent priority than ever before.”
HEPI examined ways to eradicate student loan payment evasion in New Zealand, finding measures were cost efficient and effective.
Sam Cannicott, who wrote the report, said New Zealand has a “no nonsense approach” to collecting student loan repayments from graduates who are now overseas.
Those who fail to make repayments face arrest at the country’s border while New Zealand has also imposed automatic repayments on graduates if they still live there, regardless of income.
But in Britain’s system, graduates only have to repay loans once they earn more than £21,000 a year.
Cannicott, who works at New Zealand’s government statistics body, said the country’s approach highlights “the timidity of the steps taken in the UK”.
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