Student Loan Repayment overseas

Bubblenskweek

Hi

I started university in 2005 and graduated in 2009. Until the end of last year I was living and working in the UK, repaying my loan via the usual PAYE method (ie it was taken from my gross income without me having to do anything).

In January this year I moved to Germany and informed the SLC of this, dutifully sending details of my income. They responded with a letter saying I need to pay £150 per month, which is not an amount I can afford. I sent details of my income, explaining that this amount was far too high for me to pay from my net income (UK student loans are not tax deductible in Germany) and offered to pay £50 a month, which I started doing immediately. They rejected this and have now sent me a letter stating that I am in arrears.

My income or outgoings have not increased since moving here, however the amount I am supposed to pay has doubled (as it now comes from my net income).

Is there anything I can do to get them to accept my offer? I am trying to be honest and pay what I can afford, with the majority of people I know living abroad not paying this treatment makes me want to do the same!

Any advice will be greatly appreciated,
Thanks in advance.

ViolaLass

I'm not aware that student loans are tax deductible in the UK either.

CLAPTON

Bubblenskweek wrote: »

Hi

I started university in 2005 and graduated in 2009. Until the end of last year I was living and working in the UK, repaying my loan via the usual PAYE method (ie it was taken from my gross income without me having to do anything).

In January this year I moved to Germany and informed the SLC of this, dutifully sending details of my income. They responded with a letter saying I need to pay £150 per month, which is not an amount I can afford. I sent details of my income, explaining that this amount was far too high for me to pay from my net income (UK student loans are not tax deductible in Germany) and offered to pay £50 a month, which I started doing immediately. They rejected this and have now sent me a letter stating that I am in arrears.

My income or outgoings have not increased since moving here, however the amount I am supposed to pay has doubled (as it now comes from my net income).

Is there anything I can do to get them to accept my offer? I am trying to be honest and pay what I can afford, with the majority of people I know living abroad not paying this treatment makes me want to do the same!

Any advice will be greatly appreciated,
Thanks in advance.

there is, of course, NO tax relief on student loan repayment in the UK either.


are they applying the rules correctly?

Bubblenskweek

Sorry - I do not mean tax deductible, I mean that when I was in the UK it was deducted from my gross income whereas what they are asking me for now is from my net income. I am fairly sure it has been calculated in accordance with the rules stated on their website.

They end up asking for a similar amount of money - but I have to pay it from a much smaller pot!

thebritishbloke

Nope, in the UK it's still deducted from your net income.

Contact the collections department at the Student Loans Company on +441412433970. I call them using FreeVOIPDeal.com when I'm in Germany and it's free (If you top up the account 10€, you get 3 months of free landline calls. All other calls are like 0,01€ a minute). The collections department are really nice people, just explain to them your situation and they'll usually be nice about it.

Tixy

Worth checking that their calculation is accurate.

Are you earning around 43,500euros pa gross (3625 gross per month). Equivalent to £36910 based on their exchange rates?

Bubblenskweek

Yes the calculation is about right, in UK I was paying about GBP80 per month but now they want GBP150. My salary is almost identical.

Tixy

Sounds like you were not paying the correct amount through PAYE in the UK.
Perhaps your employer had made an error in their calculations?
or perhaps they had you down under the wrong student loan scheme (although even then at £36k income you should have been paying a little over £100)

ViolaLass

Bubblenskweek wrote: »

Yes the calculation is about right, in UK I was paying about GBP80 per month but now they want GBP150. My salary is almost identical.

If you want t tell us the precise numbers, we could check them.

Bubblenskweek

I am relatively sure the numbers are right, my concern is rather that I cannot afford the amount they are requesting now.

Thank you all for your help.

CLAPTON

Bubblenskweek wrote: »

I am relatively sure the numbers are right, my concern is rather that I cannot afford the amount they are requesting now.

Thank you all for your help.

I think HMRC will expect you to reduce spending elsewhere


however, you may be grateful that you aren't New Zealand as they do things differently there


http://www.news.com.au/finance/money/new-zealanders-could-be-arrested-for-late-repayments-of-university-loans/story-e6frfmci-1227057164863

New Zealanders could be arrested for late repayments of university loans