US Student Loan Defaulters Moving to Prague

A record number of United States student loan borrowers are currently in delinquency and default, leading some individuals to leave the country to avoid their debts. According to data recently released by the Education Department, more than 40 million borrowers hold federal student debt, with 7.7 million of those borrowers having defaulted on their loans.

The trend of moving abroad to escape debt collectors has become a strategy for some borrowers seeking to relieve the psychological burden of their financial obligations. Individuals who have chosen this path report that living outside the U.S. Allows for a higher quality of life, even when earning a lower salary than they would have in the United States.

Case Study: Migration to Prague

One example of this trend is Amanda Lynn Tully, 37, who moved to Prague after completing an internship there. Ms. Tully graduated in 2017 with a master’s degree in historic preservation from the University of Oregon, accruing $65,000 in federal student loans.

Following her graduation, Ms. Tully found herself with no job offers in the conservation field. Less than a year after graduating, she made the decision to relocate to Prague and default on her loans. As of April 2026, she has not made a loan payment in over seven years.

I was never financially stable because I was never taught to be financially stable,

Amanda Lynn Tully

Ms. Tully and other borrowers who have fled abroad have indicated that they have no plans to return to the United States.

Scale of Federal Student Debt

The current scale of the student debt crisis is reflected in the Education Department’s latest figures, which show a significant portion of the borrowing population struggling with repayment. The record 7.7 million defaults highlight the severity of the financial burden facing millions of graduates.

For many, the temptation to move abroad is driven by the desire to put themselves out of reach of debt collectors. This decision is often framed as a drastic measure to escape the financial pressure associated with degrees that may not have provided the expected career stability or income.

Factors Influencing Borrower Decisions

• Psychological Relief: Borrowers cite the removal of the mental stress associated with massive debt as a primary motivator for leaving the U.S.
• Cost of Living: The ability to maintain a higher quality of life on a lower international salary compared to the cost of living and debt servicing within the U.S.
• Lack of Financial Literacy: Some borrowers, such as Ms. Tully, attribute their situation to a lack of education regarding financial stability and the implications of taking on significant loan debt.