UK Student Loan While Living Abroad (Starting Late)

Lobstersocks456

I’m reaching out to ask for some guidance regarding my student loan situation, as I’ve recently moved abroad and want to make sure I handle everything correctly.

I am a UK citizen and a 2024 graduate on plan 2. In Jan 2025, I moved overseas and began earning income from June 2025 onwards. My current earnings are approximately equivalent to £30,000 per year.

So far, I have:

• Submitted a P85 form to HMRC to notify them that I’ve left the UK
• Not yet updated my employment or residency details with Student Finance England
• Not made any student loan repayments to date

I’ve recently come across various discussions online suggesting that people living abroad can face fines, penalties, or even enforcement action (such as bailiffs) if they fail to keep Student Finance updated or make repayments. This has made me concerned that I may have already made a mistake by not updating my details sooner.

I’d really appreciate your advice on the following:

1. What is the correct process for updating Student Finance England when moving and working abroad?
2. Have I put myself at risk of penalties by not updating them immediately?
3. How are repayments typically handled for overseas earners, and how strictly is this enforced?
4. Are there any common pitfalls or things I should urgently do now to avoid issues?
5. Is there anything I can do now to correct my situation and minimise or avoid any potential penalties?

I want to ensure I stay compliant and avoid unnecessary penalties, but also understand my obligations clearly—especially given the differences in thresholds and systems when living outside the UK.

jaybeetoo

Go on the Student Loan website, login and click on the link to tell them you are living abroad. Do it sooner rather than later.

MSE_ForumTeam5

We've moved this to the part of the forum that deals with student loan questions

silvercar

As you graduated in 2024, your loan becomes repayable from April 2025. So you are still in the financial year that you first should start to make repayments. Contact the slc and tell them you are now abroad. They will ask you to set up a direct debit or standing order to make the correct repayment based on your income, this can be adjusted at the year end if your income fluctuates.

The first thing to check is whether your current income is enough to begin making repayments, this depends on the cost of living wherever you are; the slc publishes a list. It also shows the maximum repayments if you choose not to declare your income.

I very much doubt you will face penalties for payments being made a few months late in the first year of repayment. They certainly aren’t going to be sending bailiffs on planes around the world!