student loan if you move abroad

Living Abroad with a UK Student Loan: What You Need To Know

Your college days have come to an finish and your fellow graduates are flocking to cities close to and much for work. But what occurs if you wish to go additional afield — what occurs to your student loan in the event you transfer overseas?

Moving abroad is a dream come true for a lot of graduates, as it could actually offer you distinctive alternatives that you just won’t discover at house.

student loan if you move abroad

What occurs to your student loan in the event you transfer overseas?

Before you get too carried away together with your nice escape, nevertheless, there are some issues it’s essential to know about easy methods to take care of your student loan when dwelling overseas.

Student Loan Repayments Outside the UK

There are so many plus sides to transferring abroad, however (sadly!) you may by no means ignore your student loan dwelling overseas.

Your student loan is a contract, and the truth that you gained’t be dwelling within the UK doesn’t imply you will get away with not sticking to the phrases of that contract.

As it stands, the foundations state that you need to repay 9% of your earnings above the native equal of £21,000 a 12 months. The compensation threshold will rely upon what nation you wish to transfer to and it might not be the identical as it’s within the UK.

You can check out the abroad thresholds limits per nation right here.

This implies that even when your wage is far decrease than it might be within the UK, you’ll seemingly nonetheless have to repay your student loan working overseas.

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In case you’re questioning, any unpaid money owed are written off after 30 years. However, there are substantial penalties in the event you attempt to shirk your repayments earlier than that if you’re outdoors the UK. In truth, the Government have began to rent bailiffs abroad to get again student loan cash from compensation dodgers.

Student Loan Repayments if You’re Backpacking

If you’re considering of backpacking world wide and haven’t any want to get a job till your travels are over, you continue to can’t neglect about that pesky student loan.

It’s your duty to contact the Student Loans Company (SLC) to defer your repayments. You might want to present proof of no earnings or your means of monetary help for the interval you’re spending outdoors the nation, and bear in mind:  you’ll nonetheless proceed to be charged curiosity in your loan when you’re away.

You may make voluntary funds to your student loan at any time utilizing a debit or credit card, cheque or postal order or a world bank switch in case you are overseas.

The Government have hinted about elevating the compensation price up to now, so there’s a risk that you possibly can save your self cash by paying off your student loan sooner moderately than later.

Managing Your Student Loan If You Move Abroad

If you’re planning on crossing the border for greater than three months, it’s important you inform the SLC and full an abroad earnings evaluation type earlier than you allow the UK.

Once accomplished, the SLC will ship you a letter to substantiate any due repayments, your month-to-month compensation quantity and data on arranging direct repayments.

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It’s essential to level out that you’ll incur penalties in the event you don’t inform the SLC about your transfer abroad. If you might be planning a brief transfer overseas for lower than three months, you don’t have to notify them earlier than you allow and you’ll proceed to be handled as a UK taxpayer.

Each 12 months, the SLC will ship you a reassessment letter and type to your abroad tackle to find out your present scenario and the way a lot it’s essential to repay.

If at any time your earnings falls or rises, you need to contact the SLC to reassess your repayments.


Regardless of any rumours you will have heard about working off to overseas lands to keep away from paying to your training, you continue to have to pay again your student loan working overseas. As lengthy as you contact the SLC beforehand, it ought to be straightforward to handle when you’re away.

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