The Conservatives have pledged to restrict access to taxpayer-backed student loans for non-UK nationals as part of a new policy the party claims could save around £900 million a year.
The proposal, announced as the Conservative Party conference gets under way in Birmingham, would end student-loan access for non-EU foreign nationals while preserving rights held by EU citizens with protected status under post-Brexit arrangements.
The party also says it would stop new claims under the EU Settlement Scheme, arguing that the system is being abused years after the original application deadline.
The £900 million figure is a Conservative Party estimate and is not an independently verified saving or current government policy.
Tories target student finance for non-UK nationals
Under the existing system in England, eligibility for student finance is based on a person's immigration and residency status rather than nationality alone.
UK nationals, Irish citizens and people with settled status can generally qualify for tuition-fee and maintenance loans if they meet the relevant residency and course requirements.
Other non-UK nationals can also qualify in specified circumstances, including some people with recognised immigration status, long residence in the UK or international protection.
The Conservatives say their proposed changes would tighten those rules and end access to student loans for non-EU foreign nationals.
EU citizens with settled status have protected rights under post-Brexit arrangements and would retain their existing eligibility, subject to the normal student-finance rules.
Almost one in five recipients are non-UK nationals
Department for Education figures show the proportion of student-loan recipients recorded as non-UK nationals increased from 12.1% in 2020/21 to 18.8% in 2024/25.
The Government has stressed that these figures should not be interpreted as loans being handed to people simply because they are foreign nationals.
In a parliamentary answer published in September, ministers said eligibility is based on residency and immigration status and is intended to target support at people with a recognised connection to the UK.
The Student Loans Company verifies identity, immigration status and residency history before approving finance.
Separate official figures show that £3.794 billion in fee and maintenance loan payments were made in 2024/25 to undergraduate students who declared themselves to be non-UK nationals across England, Wales, Northern Ireland and the EU. That total is not the same as the amount the Conservatives say their proposal would save.
Conservatives claim £900m annual saving
The party says restricting access for non-EU nationals would reduce expected losses on student lending and estimates the measure would save taxpayers approximately £900 million annually.
Conservative officials argue that repayment rates among non-UK borrowers are lower and that British taxpayers should not carry the cost of loans that are ultimately not repaid.
However, the £900 million saving is the party's own policy costing. The Department for Education said in a previous parliamentary answer that it had not produced an estimate of the cost of restricting student-loan eligibility to British citizens.
EU students already face tighter post-Brexit rules
The rules for EU students changed substantially following Brexit.
From the 2021/22 academic year, new EU students in England without settled or pre-settled status generally ceased to be eligible for tuition-fee support.
EU citizens and qualifying family members covered by the Withdrawal Agreements can continue to receive home-fee status and student support on broadly the previous basis if they meet the relevant conditions.
The Conservative proposal therefore goes beyond the post-Brexit restrictions by targeting access available to other categories of non-EU nationals who can currently qualify because of their immigration or residency status.
Party also targets new EU Settlement Scheme claims
The Conservatives have linked the student-finance announcement to a proposed tightening of the EU Settlement Scheme.
The party says it would stop new EUSS claims, arguing there is no justification for continuing to approve new applications years after the principal June 2021 deadline.
Late applications are currently permitted in certain circumstances where applicants have reasonable grounds for missing the original deadline.
The Conservatives claim around 66,000 new applicants gained status through the scheme during the past 12 months and argue that the continued availability of late applications is being abused.
That characterisation is a Conservative Party claim; individual EUSS applications are subject to Home Office eligibility rules.
Part of Badenoch's conference policy programme
The student-loan proposal is one of a series of policies being unveiled as Kemi Badenoch's Conservatives gather for their annual conference in Birmingham.
Other announcements include plans to expand prison capacity, reform fit notes and abolish the £100,000 income ceiling which can remove eligibility for government childcare support.
The student-finance changes would require a future Conservative government to alter existing eligibility rules before taking effect.
Sources
- GOV.UK: Student finance for undergraduates — eligibility
- UK Parliament: Department for Education answer on non-UK student-loan recipients — 8 September 2026
- UK Parliament: Student finance eligibility and payments to non-UK nationals
- Student Loans Company: Student Loans in England 2024-25
- Department for Education: Post-Brexit student-finance eligibility rules