UK Student Loan, been out the country 5 years, no contact with them. What to expect?

bobbytrotter123 · 3 June 2018 at 9:25AM

Hey, I have spent around 5 years abroad living in Taiwan. The first year I moved there they sent a letter asking for an update on my situation, I responded to say I'm traveling (I was at the time). However I didn't hear anything from them after and just forgot about it, I was under the impression if you aren't working in the UK there isn't anything to worry about because they deduct from you automatically when you start working.
I am returning to the UK soon to look for work, and I would like to start paying my loan back. I have been working in Taiwan for some of the time only. This was well under the threshold, I was just working as a substitute teacher cash-in-hand. I am now worried about contacting the loan company and what to expect.

Does anyone have any experience with being abroad for a significant length of time with no contact with the Student Loans Company? Do they put the loan into arrears? What exactly is the difference between a loan that is in arrears and a loan that is not? Both you have to pay back, is the arrears amount an additional sum they will want to take from your payslip monthly?

sourcrates · 3 June 2018 at 1:00PM

Hi,

My understanding of student loans, is that you only start repaying it, once your salary hits a certain level, and you then repay a certain percentage back according to your wage.

If you have not yet hit that level of income, no repayments are due.

I stand to be corrected of course, but that is my understanding of the new student loans.

Dobbibill · 3 June 2018 at 1:51PM

Why don't you head over to the Student Money Saving board.

There's lot of threads there about Student loans, going abroad and payment thresholds.

Depending when you took it out would depend what the threshold is.

It is paid through the tax system directly from your wages.

Update SLC when you begin employment again.

badmemory · 3 June 2018 at 6:13PM

Do you know if your loan has been sold on to the likes of Erudio? There is a very long thread under credit file and ratings called "ERUDIO student loans help", there are people on there battling with issues such as yours. With luck yours won't have been sold on but it fits the circumstances of many who have, that is for one reason or another, right or wrong, not repaying.

UK Student Loan, been out the country 5 years, no contact with them. What to expect?

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