Student Loan & Living Abroad???

demon8991 · 24 Nov 2008 at 15:56

What happens with regard to student loans if i was to go and live in australia?

How would one pay or not pay it if they lived and worked in another country?

a1ex2001 · 24 Nov 2008 at 16:01

You wouldn't pay it as you wouldn't be earning a living in the UK and it is now collected direct from your employer. They will however keep adding interest to it and should you return to the uk repayments would start as usual when you earned over the threshold. I believe there used to be a 25 year expiry which has recently been increased to last until retirment.

Glaucus · 24 Nov 2008 at 16:03

a1ex2001 said:
You wouldn't pay it as you wouldn't be earning a living in the UK and it is now collected direct from your employer.

This is not true, you have are meant to fill out a form and set up a payment.

Repaying from Overseas

If you are overseas and out with the UK tax system you will still make repayments directly to the Student Loans Company. The type of loan you have will determine the repayment scheme you will follow.

If you took out a student loan before 1st September 1998 you will make payments by monthly instalments. These repayments will be made over a fixed 5 or 7 year period, depending on how many loans you have – see the Fixed Term Repayments section for more information.

If you took out a student loan from 1st September 1998 you will make Income Contingent Repayments. These repayments will be based on how much you earn - see the Income Based Repayments section for more information.

It is important that you contact us before you leave the UK, with as much advance notice as possible. If you do not inform us about your circumstances you may be subject to penalties.

everything you need to know on this site
http://www.studentfinancedirect.co.uk/portal/page?_pageid=53,1259548&_dad=portal&_schema=PORTAL

dangerstat · 24 Nov 2008 at 16:04

demon I think there's a section on the SLC website about this. But for sure they will keep adding on interest 3.8% at the moment I think. To be honest it's not much though I think I only pay them about 50 quid a month or something, surely you can manage that even if your living abroad

dangerstat · 24 Nov 2008 at 16:05

AcidHell2 said:
This is not true, you have are meant to fill out a form and set up a payment.

It's taken directly out of my pay by my employers, I didn't fill in a form :confused:

Glaucus · 24 Nov 2008 at 16:05

dangerstat said:
It's taken directly out of my pay by my employers, I didn't fill in a form

That's because you live in the uk.

a1ex2001 · 24 Nov 2008 at 16:33

AcidHell2 said:
This is not true, you have are meant to fill out a form and set up a payment.

It's perfectly true if you don't fill out the form and anyone who does is clearly insane. I read the OP as being a question about how to avod repayment and answered it as such so jump down off the moral soap box for a second.

If you have the oppertunity to avoid paying take it, this is the cheapest Loan you'll ever get if you desperately feel the urge to save to cover it while your away open a high interest savings account and save some money.