Plan 2 UK Student Loan repayment as an expat in Indonesia.

fluffy_kittens1783

I am working in Indonesia making £58,000 per year. The Indonesian payback threshold is only £11,390, above which I will have to pay 9% to my student loan. This is approximately £4000 per year.

The fixed monthly rate (the amount you’ll be charged if you don’t provide income information, i.e., arrears) is only £154 per month, or approximately £1850 per year. 

Financially, should I just withhold my income information and pay the arrears, saving over £2000 per year? with the idea that I'd never pay off my loan in full anyway before its wiped. 

Its very unclear whether this is actually an offence and if there would be any later repercussions? 

Can someone please help me on this one? £4000 a year seems really high to me, plus being in my earnings bracket means the interest would jump from 4.3% to 7.3%. 

Thanks in advance. 

marcia_

fluffy_kittens1783 said:

I am working in Indonesia making £58,000 per year. The Indonesian payback threshold is only £11,390, above which I will have to pay 9% to my student loan. This is approximately £4000 per year.

The fixed monthly rate (the amount you’ll be charged if you don’t provide income information, i.e., arrears) is only £154 per month, or approximately £1850 per year. 

Financially, should I just withhold my income information and pay the arrears, saving over £2000 per year? with the idea that I'd never pay off my loan in full anyway before its wiped. 

Its very unclear whether this is actually an offence and if there would be any later repercussions? 

Can someone please help me on this one? £4000 a year seems really high to me, plus being in my earnings bracket means the interest would jump from 4.3% to 7.3%. 

Thanks in advance. 

 Nobody here will advise you to lie on official documents or commit fraud if it is so

silvercar

My understanding is that you can choose not to provide information and pay the rate for non declared income.

fluffy_kittens1783

marcia_ said:

fluffy_kittens1783 said:

I am working in Indonesia making £58,000 per year. The Indonesian payback threshold is only £11,390, above which I will have to pay 9% to my student loan. This is approximately £4000 per year.

The fixed monthly rate (the amount you’ll be charged if you don’t provide income information, i.e., arrears) is only £154 per month, or approximately £1850 per year. 

Financially, should I just withhold my income information and pay the arrears, saving over £2000 per year? with the idea that I'd never pay off my loan in full anyway before its wiped. 

Its very unclear whether this is actually an offence and if there would be any later repercussions? 

Can someone please help me on this one? £4000 a year seems really high to me, plus being in my earnings bracket means the interest would jump from 4.3% to 7.3%. 

Thanks in advance. 

 Nobody here will advise you to lie on official documents or commit fraud if it is so

Does not declaring income count as fraud? 

silvercar

fluffy_kittens1783 said:

marcia_ said:

fluffy_kittens1783 said:

I am working in Indonesia making £58,000 per year. The Indonesian payback threshold is only £11,390, above which I will have to pay 9% to my student loan. This is approximately £4000 per year.

The fixed monthly rate (the amount you’ll be charged if you don’t provide income information, i.e., arrears) is only £154 per month, or approximately £1850 per year. 

Financially, should I just withhold my income information and pay the arrears, saving over £2000 per year? with the idea that I'd never pay off my loan in full anyway before its wiped. 

Its very unclear whether this is actually an offence and if there would be any later repercussions? 

Can someone please help me on this one? £4000 a year seems really high to me, plus being in my earnings bracket means the interest would jump from 4.3% to 7.3%. 

Thanks in advance. 

 Nobody here will advise you to lie on official documents or commit fraud if it is so

Does not declaring income count as fraud? 

I think fraud is too strong a word. If you disappear off the radar or don’t make repayments, you build up arrears. 

The actual rule is “  if you fail to notify the Student Loans Company of how much you're earning, you'll be charged a 'Fixed monthly repayment'. ” my interpretation is that you could choose not to notify and instead pay the fixed monthly repayment, but I can see it’s open to interpretation- you could always phone slc and ask them.