Student Debt Burdened Them, So They Moved Abroad and Stopped Paying

https://www.nytimes.com/2026/04/04/business/student-loans-abroad-default.html

Some Borrowers Are Moving Abroad and Abandoning Their Student Loans

A record number of student loan borrowers are in delinquency and default. Some are making the drastic decision to leave the country and abandon their loans.

The New York Times

People in The Netherlands have done this. They go to S/E Asian countries to skip out on a €30,000 debt. After a while your passport becomes invalid which makes travel very difficult. And with the outstanding debt you are not able to get a new passport.

Which is dumb, because you only have to pay off the debt if you are able to, interest rate is very low, you can pause it for a few years and after 35 years the loan is automatically forgiven. It's not a big deal. Completely uprooting your life to skip out on a €50/month payment is insanity but people see that €30,000 number in their portal and freak out about it.

Approximately 25,000 emigrated debtors are currently untraceable by the student debt collector.

> Passport Blocks: Arrears exceeding €5,000 can result in registration in the passport alert system, making it impossible to receive a new passport,

I would say that is pretty serious violation of human rights, for relatively small infraction. Soviet countries used similar system to prevent people from leaving their communist paradise.

How are you supposed to pay your debt, if you are not allowed to find new job abroad?!

They only do this if communication with the debtor is impossible. If this happens to you, you can contact the government, schedule a payment plan for your debt and then they give you a passport with a 12 to 24 month validity.