Student loan PAYE payments when abroad?

guitarman001

Supposing you were to move abroad and had been paying off your student loan through PAYE here in the UK.. is it common to set it up so that you pay it off if you started earning Euros in another country?

I've been paying mine off for 4 years now - it's gone from £15k down to £8.5k but it's going to take another 3 years to completely pay off, at which time I'll be nearly 31!! It's been a complete millstone around my neck - I don't know how others are going to cope with £40k+ student fees & loan, and then mortgage or whatever on top...!!!

bigadaj

If you moved overseas then I assume it is up to you whether to keep paying or not. If not then interest at least would accrue at the prescribed rate, you might be defaulted in the uk though the effect of this would depend on your future plans.

In terms of the debt then you are right, for most people I would very much question whether it is worthwhile studying, particularly if you can get an apprenticeship or job and training at eighteen.

I went to a top university in the eighties, full grant though it did cost me for my masters in the nineties, there's no way that I would go to university now with the debt levels in place, sad really as social mobility will reduce even further, mainly driven by people of my age and older pulling up the ladder for their own kids.

CLAPTON

bigadaj wrote: »

If you moved overseas then I assume it is up to you whether to keep paying or not. If not then interest at least would accrue at the prescribed rate, you might be defaulted in the uk though the effect of this would depend on your future plans.

In terms of the debt then you are right, for most people I would very much question whether it is worthwhile studying, particularly if you can get an apprenticeship or job and training at eighteen.

I went to a top university in the eighties, full grant though it did cost me for my masters in the nineties, there's no way that I would go to university now with the debt levels in place, sad really as social mobility will reduce even further, mainly driven by people of my age and older pulling up the ladder for their own kids.

this is rubbish

just google SLC and look up the rules about your responsibility if you go abroad

Dunroamin

guitarman001 wrote: »

Supposing you were to move abroad and had been paying off your student loan through PAYE here in the UK.. is it common to set it up so that you pay it off if you started earning Euros in another country?

I've been paying mine off for 4 years now - it's gone from £15k down to £8.5k but it's going to take another 3 years to completely pay off, at which time I'll be nearly 31!! It's been a complete millstone around my neck - I don't know how others are going to cope with £40k+ student fees & loan, and then mortgage or whatever on top...!!!

If you've been paying off over £1,500 pa, you must have been on a salary of over £30K which you probably wouldn't have been earning if you weren't a graduate, particularly as you look to be earning even more in the next couple of years. Regular repayments won't be any different if you earn £4K or £40K so most people will not find it a millstone.

The SLC has strict criteria for loan repayment in both the rest of the EU and other countries, with a repayment threshold set to reflect the cost of living there. Anyone who doesn't make the appropriate repayments will run up extra charges and will find themselves chased up.

guitarman001

I must check the SLC site - thanks.

FYI I don't plan on no paying - I want it cleared as soon as possible!

Hovering around £30k but I've been overpaying.. still a millstone at approx £250 a month.. I also wouldn't go back to uni if fees in Scotland were to raise like those down South, especially given employment prospects. Education and housing are both very expensive.

Can't wait until it's all paid off!

Dunroamin

Given that the normal repayments on an income of £30,000 would be only £110 pcm, the "millstone" seems to be of your own making. Seeing that you've chosen to act against the normally recommended course of action by overpaying, it seems to be a bit much to complain about the choice you've made.

bankhater_1965

Dunroamin wrote: »

Given that the normal repayments on an income of £30,000 would be only £110 pcm, the "millstone" seems to be of your own making. Seeing that you've chosen to act against the normally recommended course of action by overpaying, it seems to be a bit much to complain about the choice you've made.

i could never understand why you have to pay this money back as this also disciminates against the less wealthy !! we should be encouraging this as you students are the future finance of this country and are the countries biggest assest and the country will benifit from you over and over again

guitarman001

Dunroamin wrote: »

Given that the normal repayments on an income of £30,000 would be only £110 pcm, the "millstone" seems to be of your own making. Seeing that you've chosen to act against the normally recommended course of action by overpaying, it seems to be a bit much to complain about the choice you've made.

I just can't bear to have this niggly debt when I'm over 30. It is about £110 pcm, you are right, and I overpay by an extra £150 per month. I could pay it all off now but I want to strike a balance between wise use of money and putting my mind at ease (getting rid of the debt).

Fiddlestick

bankhater_1965 wrote: »

i could never understand why you have to pay this money back as this also disciminates against the less wealthy !!

Because it's a loan.

Loans generally need paid back.

we should be encouraging this as you students are the future finance of this country and are the countries biggest assest and the country will benifit from you over and over again

I'm from a "less wealthy" family and I'm happy to be paying mine back.

I wouldn't have been able to go to University without it and if it takes me a long time to pay it back, so be it.

That's the Quo for the Quid after all.

Fiddlestick

guitarman001 wrote: »

I just can't bear to have this niggly debt when I'm over 30. It is about £110 pcm, you are right, and I overpay by an extra £150 per month.

C'est la vie.

I could pay it all off now but I want to strike a balance between wise use of money and putting my mind at ease (getting rid of the debt).

Overpaying was not wise.

The APR on the loan is less than you would have earned had you put the overpayments into an ISA.

guitarman001

True.. I know.. it sounds ridiculous but I just wanted to get that figure down! Now it's down to £8.5k or so perhaps I should stop (or reduce) the overpayments for some time.

I'm also from a less wealthy family and I AM going to do the right thing and pay it back... but there's been a lot of moral hazard lately and I can't say I'm as idealist as I used to be. Pessimist/realist more like!!