Old Student Loan - Living overseas

Vivian507

Hello there,

I am looking to pay the voluntary NI scheme requirements for the UK Pension, as the rules are changing on April 6th. I have 8 Years service, so can top up to 10 years for state pension or 30 years for full pension.

These are my current circumstances:

1- I have lived overseas for 13 years and have been made redundant so currently not working

2- I have not in contact with the student loan company since 2010 (my loans were taken out up to 2006 but I left the UK in 2011)

3- I am on the plan 1 loan but HMRC don't have my current updated information

4- I have 8 years of NI contribution in the UK, so can top up two more years to get the basis state pension

I will need to complete the CF83 form to send into HMRC, so that would flag to the Student loans of me being overseas and my current address. Does anyone know what the next steps would be?

How do I pay if I am not working currently? Also, assuming the UK has a Reciprocal agreement in place with other commonwealth countries to share information.

Do I have to show my savings/assets to HMRC overseas and then pay it all off on lump sum or only pay if I return to UK.

Do they backdate the repayments even when not working?

Any help would be greatly appreciated

MSE_ForumTeam5

We've moved this to the section of the forum that deals with student loans and related matters

silvercar

welcome to the forum. @Vivian507

Normally you would apply to be exempted from making payments if your income is low. Your problem may be that you have not engaged with the student loan company and so your account is in arrears. If you go abroad for work you are meant to update the student loan company within 3 months. You need to get his corrected.

when your plan 1 loan is written off depends on when it was taken out:

“ If you were paid the first loan on or after 1 September 2006, The loans for your course will be written off 25 years after the April you were first due to repay.

If you were paid the first loan before 1 September 2006, The loans for your course will be written off when you’re 65.”

No doubt the student loan company will want payment for any missed amounts due, plus interest maybe. If you want your loan to be written off at the appropriate time you need to sort your account out. The amount of loan you should have paid over these last 15 years will need to be calculated. There are different thresholds for those overseas depending on the standard of living of the country. Where are you?

I’d get in touch with them and say you want to update your account. They will calculate if anything is owed and then you can agree a repayment plan to tackle the arrears, if any have built up.

Vivian507

@silvercar Thank you for your comment.

My first loan was paid before 1 September 2006 as I started university in 2003. How does it work with it being written off after 25 years. Do I make the repayments until the 25 years?

I was in Australia, but now I am unemployed so am I expected to make the payments even being out of work.?

Ed-1

https://forums.moneysavingexpert.com/discussion/comment/81935861#Comment_81935861

Your loan gets written off at age 65 if you took the first loan before 2006.

silvercar

https://forums.moneysavingexpert.com/discussion/comment/81935861#Comment_81935861

You’ll be expected to make the payments you should have made while you were working. Once those arrears are cleared, you won’t be expected to make repayments while you are not working.

I would think write off will be paused if you are in arrears, until you have cleared those.