Unfair Student Loan Overseas Repayment Requirements

buckydee

Hi,

I am emigrating to Australia on 5th September 2012 and have been looking at the repayment structure as posted on the SLC website. I note that the repayment arrangement is the same for Australia as it is for the UK, however, this does not take into account the increased cost of living in Australia when compared to the UK.

I currently earn just under £24k pa and pay £60 a month in repayments, but because I will be earning $65k in Australia (direct exchange - ~£40k), based on the standard calculations, I will be paying almost £200 a month in repayments. This seems completely out of context when you consider that, for instance, we pay £700 pcm in rent in this country, but will be forced to pay around double that figure for the same type of property in Australia.

It is widely acknowledged that the cost of living in Australia is higher than in the UK (the rule of thumb is that you need to earn 2.5x your current GBP salary in AUS dollars to maintain your lifestyle) and therefore I do not think it is reasonable to impose the same repayment requirements. When I asked the SLC to explain how it has come to this conclusion, I got a very sullen, non-commital answer from a bored call centre member of staff saying it’s just what the government has set.

Is there any way of challenging this? I'm not trying to get out of paying my student loan, but I feel I'm being penalised for being honest about moving abroad - clearly it's not in my best interests to let them know I'm leaving if my payments go up so much, when my disposable income won't! Earning £40k in Australia is not comparable to earning £40k in the UK so why should the repayment structure be the same?

Thanks,

fwor

I guess if you look at it from their point of view, the rules have always been clearly stated, and they will assume that it was your choice to emigrate - nobody forced you into it?

I don't think that realistically with an income equivalent to £40k you are going to be able to make a case for hardship - most people should be able to find £200/month on that level of income, no matter where they are.

And looked at another way, your disposable income may not go up as much as you want for a while, but you'll be free of the loan much quicker, at which point your disposable income will definitely go up...

ILW

There is also the fact that the UK will not be getting the tax income, despite having paid for most of the education.

mulronie

You'll be eaten alive in Australia with that attitude mate!

The rules are the rules, and so the only way to avoid paying is to not go. Unfortunately George Osborne isn't in the habit of frequenting MSE forums and granting wishes like some kind of Tory fairy godmother.

miketaff1408

buckydee wrote: »

It is widely acknowledged that the cost of living in Australia is higher than in the UK (the rule of thumb is that you need to earn 2.5x your current GBP salary in AUS dollars to maintain your lifestyle

So.... current salary = £24,000.

By your formula, 2.5 x this in Aus dollars is........$60000.

So, if you will be earning $65000, your 'lifestyle' will be not just maintained, but improved a little!

Whats the problem sport?????

DevCoder

miketaff1408 wrote: »

So.... current salary = £24,000.

By your formula, 2.5 x this in Aus dollars is........$60000.

So, if you will be earning $65000, your 'lifestyle' will be not just maintained, but improved a little!

Whats the problem sport?????

I was also confused by his maths, surely 2.5x applies to both the salary and the loan repayment so he is slightly better off.

funk100

I currently earn £42000 per annum and pay £205 per month in student loan repayment. So the figure you quoted is about right.

bigadaj

Cost of living in oz is hugely sensitive to location, Sydney and Perth are expensive, Victoria and other areas can be cheap. Don't forget that Aussie dollar is strongest it has ever been, which is causing real economic pain outside mi ing and specialist sector. For comparative purposes may better to judge equivalents on exchange rate of two for realism, if you're no better off there then don't go.

LouLouLouLouLou

BuckyDee - we completely get where you're coming from and totally agree that the cost of living should be taken into consideration. It's far more expensive here, with a tin of soup alone costing $5!!! Ridic!!!
We have just moved here and are having the same dilemma. Hoping to speak with the student loans company tomorrow, so will let you know their response.

FWOR, ILW, mulronie and all the others with really helpful comments... your attitudes are bizzare. Do you work for the Student Loans Company? Get a life. Get to Oz! Ha!

ILW

LouLouLouLouLou wrote: »

BuckyDee - we completely get where you're coming from and totally agree that the cost of living should be taken into consideration. It's far more expensive here, with a tin of soup alone costing $5!!! Ridic!!!
We have just moved here and are having the same dilemma. Hoping to speak with the student loans company tomorrow, so will let you know their response.

FWOR, ILW, mulronie and all the others with really helpful comments... your attitudes are bizzare. Do you work for the Student Loans Company? Get a life. Get to Oz! Ha!

So by your rather daft logic, would you say that someone who has a student loan in the UK should have different repayment terms if they chose to live in Mayfair where the cost of living is higher than average?

mumps

I suppose people who work in London could argue the same, they pay more for rent, transport etc than people in cheaper areas of the country. I guess it is something that has to be taken into consideration when deciding where to live.