Last year there were 12,314 “missing” EU students with total outstanding loans of £89 million

More than 12,000 European Union graduates have gone “missing” after leaving British universities, owing a total of £89 million.

The number of EU graduates who refuse to repay their student loans after returning home has increased sharply in recent years.

The total owed is likely to rise further because of higher tuition fees and increased recruitment of high-achieving EU students by British universities.

Undergraduates from EU countries have been entitled to take out student loans to cover the cost of their tuition fees on the same terms as British students since 2006, although they are unable to take out maintenance loans for living costs.

The Student Loans Company (SLC) has a poor record of chasing graduates who leave Britain.

The National Audit Office published a