UK student loan - overseas confusion

[laura.04]

Hi everyone,

I have a (large) UK student loan and I graduated in June 2008. However, I've just moved to the Netherlands to start a PhD and I know I won't be working in the UK for some time, if ever. I know I'm not required to start repayments until April 2009 but under the new (post-1998) guidelines I can't defer if I go on to further study. It doesn't help that I pay tax etc over here, so I'm wondering what the rules are for defaulting on my loan?

In theory, for the Netherlands I would be paying 9% of all my earnings over 15,000 pounds (considering the current exchange rate, I'm going to assume that's the same as 15,000 euros) so it would be 9% of ~9,000. The tax is high though and I have a lot of expenses I didn't have in the UK, such as health insurance and all sorts of compulsory employees' insurances (for example, seeing as I'm 23, single and have no dependents it seems odd that I have to pay insurance to take care of my dependents in the case of my death). Is that taken into account or is it just standard from your gross income?

I know that the student loans company don't pass on the details to credit card companies etc so I won't be blacklisted, but I don't know how long I have to be MIA for until they cancel the debt. What charges they are allowed to put on me if I don't make my repayments? Unsurprisingly, the student loans company website does not provide information on penalties and defaulting on loans, so all I have to go on is rumour and things I read on forums (which usually don't specify whether it's a pre- or post-1998 loan).

Please help!

Laura

 

[mf1]

"Unsurprisingly, the student loans company website does not provide information on penalties and defaulting on loans,"

Ummmm. You would like peoples assistance. You clearly have a strong intention to simply renege on your obligations. I assume you were happy to get the loan, happy to spend it, understood that it had to be repaid and are a little surprised that the student loan company don't provide information on penalties etc.,etc. You also presumably factored in everything when taking the decision to do the Ph.D.

No, I can't advise.

mf

 

[ddale]

The quick answer is that your loan will not be cancelled. You may wish to consider that when you applied for your student loan, you signed a legally binding contract and part of that is an undertaking to notify the SLC if you move overseas. If you don't do so, penalities can arise and the SLC can ask for the full amount of loan to be repaid at once.