Student Loan living overseas

The_Treepig

Hello Moneysavingdotcom people,

I've got a bit of a query regarding my (UK) student loan, given that I'm currently overseas.

I left the UK in October 2008 to do some travelling, I didn't really have a plan of what I was doing, but to cut a long story short I've ended up currently living in Wellington, NZ with my kiwi girlfriend who I met somewhere along the way.

When I left the UK it was a bit of a last minute thing, and I didn't contact the student loans people (yes I know you're supposed to if you're going abroad for 3 months, and I should have done it was bad/stupid of me). Since then the whole thing had never really crossed my mind until...

yesterday when I get an e-mail from my dad that Student Loans have sent me a letter asking me what I'm up to (presumably HMRC have told them I'm not getting taxed on any earnings or drawing any benefits), and I need to return it to them within 28 days or I get £150 fine. Fair cop.

I've done a bit of reading around and the NZ threshold is £12,000 or £196 a month (which is what I assume they want if you don't declare your income).

I've been supporting myself with savings mostly, and I was living with my uncle in NZ for about six months and working in a call centre. I'm currently unemployed but trying to find work atm.

So basically, I'm just wondering if anyone knows the best way to handle the situation. If I find work and am earning equivalent of £12,000 I have no issue paying 9% on everything above that, but I'm just worried that they might try to impose penalties or make me pay the £196 a month, which at the moment I can't really afford.

Any help/advice would be much appreciated.

Thanks.

Lugh_Chronain

Hello Gabar

The_Treepig

I'm not sure what that means?

Poolie

The £196 per month is the charge they will make on your account if you don't provide the information. The threshold is £12,000 so if you are not earning or below this you will not be expected to make any paments.

Who are you living with at the moment? Are you supporting yourself on savings?

You will need to provide a letter from the third party stating they are supporting your or copies of your bank statements showing your savings dated within the last 3 months.

You will receive this form annual so you will be provide information on how you are supporting yourself each year you are overseas.

Raggs_2

As Poolie stated, it's merely a case of informing them, and showing evidence of how you were supporting yourself. I didn't actually inform them several times when I should have, and only when I actually started work (if they'd have chased me, obviously I'd have told them, but seeing as I wasn't earning, I didn't see it as a priority, right or wrong).

I have had a lot of success with them, and they have been very agreeable every time I've contacted them to sort out various issues. Although I guess my tune may change at the end of this month (several things about to come up ).

JoeBloggs80

I'm also now working overseas in Australia. I haven't yet informed the SLC but will do so soon. My problem is that I have just started work, but its just a 3 month contract. I'm being quite well paid but don't want to give my earnings to the SLC as if they then calculate it as a yearly rate I could well end up paying more than I should be in the future if I get a lower paying job. I may even not be in work for a month or two after this contract and do some more travelling instead, but don't want keep up repayments when I'm not in work. Does anyone know if they calculate it monthly or yearly if you are overseas?

Also looking at the website I think its very bad that the SLC dont take into account the weak state of the pound. the threshold at the current exchange rate is ridiculously low. What I'm currently earning, I'm actually better off not declaring my income and just paying the default rate of 196gbp per month!

whitfreak

It will be yearly, but paid monthy at a guess.

Firstly work out if your current "high" wage would breaks the threashold. £1250per/month on the for the UK threashold, not sure what Oz's is.

If it isnt then, inform the SLC anyway cus you are supposed to, but you shouldnt have to make any repayments.

If it is then, inform the SLC of your situation and hope they have a standard policy for dealing with the not uncommon "working your way around Oz" year. If they don't, remember to tell them when you stop earning, or move to a lower paid job, as they they'll have to recalulate everything, and repayments should stop. If you overpay you can reclaim that back at the end of the year. But you have to wait until the SLC is convinced that its got all the info from the taxman etc.

Side note I thought the default rate was a fine, rather than a minium repayment. But I may be wrong.

Poolie

whitfreak wrote: »

If it is then, inform the SLC of your situation and hope they have a standard policy for dealing with the not uncommon "working your way around Oz" year. If they don't, remember to tell them when you stop earning, or move to a lower paid job, as they they'll have to recalulate everything, and repayments should stop. If you overpay you can reclaim that back at the end of the year. But you have to wait until the SLC is convinced that its got all the info from the taxman etc.

Side note I thought the default rate was a fine, rather than a minium repayment. But I may be wrong.

A few points here, if your overseas there will be no return expected from HMRC. Also any repayments paid via directly to SLC will not be refundable.

You can ask to be reassessed through out the year without any issue.

The default rate is a minimum rate but this will be charged as a fine onto the account.

harekrishna

When I arrived in Oz after backpacking, I informed the SLC that I was unemployed (had to send bank statements showing the savings I was living off etc...). So I defferred for year, and then after that they will send you a letter asking about your current circumstances.

I wouldn't worry about what you are going to send them etc... You say you will be looking for work, but are currently unemployed so this will be sufficient for a year, until you are due to be re-assessed.

The overseas threshold is a load of rubbish. It doesnt take into account the living expenses or the exchange rate - IMO. For example after rent/bills/living expenses (note I have no other loans to repay so I am in a good position) leaves me with about $300 spare (167 pounds). However based on the 12,000 pounds threshold, they have calculated that I can make repayments on a 15,000 pound loan no problem. :rotfl:

I've just ignore them now. (Obviously that is the wrong thing to do I know) I had to tell them 7 times that they had the wrong address!

I think my circumstances are a little different though, as I have no plans to return to the UK to live/work.

Fill out the overseas form, defer for a year.

Not sure any of that helps you.

** note I've just read the MSE Articles on Student loans and it mentions something about not paying and you can be asked to pay the whole lot off in one go.

Oldernotwiser

harekrishna wrote: »

When I arrived in Oz after backpacking, I informed the SLC that I was unemployed (had to send bank statements showing the savings I was living off etc...). So I defferred for year, and then after that they will send you a letter asking about your current circumstances.

I wouldn't worry about what you are going to send them etc... You say you will be looking for work, but are currently unemployed so this will be sufficient for a year, until you are due to be re-assessed.

The overseas threshold is a load of rubbish. It doesnt take into account the living expenses or the exchange rate - IMO. For example after rent/bills/living expenses (note I have no other loans to repay so I am in a good position) leaves me with about $300 spare (167 pounds). However based on the 12,000 pounds threshold, they have calculated that I can make repayments on a 15,000 pound loan no problem. :rotfl:

I've just ignore them now. (Obviously that is the wrong thing to do I know) I had to tell them 7 times that they had the wrong address!

I think my circumstances are a little different though, as I have no plans to return to the UK to live/work.

Fill out the overseas form, defer for a year.

Not sure any of that helps you.

** note I've just read the MSE Articles on Student loans and it mentions something about not paying and you can be asked to pay the whole lot off in one go.

You can only defer with pre 1998 loans; if your circumstances change during the year you need to tell them otherwise you may be liable for fines and charges.


Many UK debt collectors have arrangements with similar companies in OZ sodon't expect things to just go away!

Poolie

SLC can demand the whole amount back to charges and interest payments in one go so better to be upfront and straight with them.