If you’ve studied in a college in the UK, then you’re probably one of the millions with a loan that must be repaid. If you have a job in the country, you don’t have to do much because they’ll deduct it directly out of your paycheck.
But for those that have moved overseas, paying student loans is a bit more complicated. That’s why in this article, we’ll provide a step-by-step guide to help you.
1. Notify the Loan Provider
Before you move abroad, you must contact the loan provider and inform them about your plans and how they can get in touch. You can’t just leave the country without telling them because it’ll make them suspicious you’re trying to avoid paying back your student loan.
Since you’re living and working in another country, the loan provider cannot deduct the money out of your paycheck. Therefore, you need to repay them directly, and to do that, you need to provide evidence regarding your income. Specifically, you must fill out the overseas income assessment form along with several payslips and a copy of your contract.
If you’re self-employed, you need to provide copies of your bank account to confirm your annual income. Most loan providers won’t accept invoices as evidence. In addition, those copies must be sent along with a confirmation letter from your accountant.
If you’re still in the first year of self-employment, you can provide copies of your bank statements from the past several months, or you can fill out the “third party declaration” section on the income assessment form. If you receive financial support from someone else while living abroad, they should fill that section.
If you don’t have a job, you must submit documents proving you’re doing things other than working. Some of these documents are:
- Proof of government benefits received in the last 12 months
- Proof of having enough savings to live on
- A letter from the college, confirming you’re studying there.
Once the loan provider is satisfied, it’ll take a sum out of your account every month until your debt is repaid. However, they might check in every year and ask you to confirm your income. Therefore, be prepared to keep them updated. In case of a significant change to your income, it’s better to apply for a reassessment.
There’s a myth that once you move to another country, your student loans will simply vanish. However, the British government has burst that bubble by taking strict measures against people who have left the country and refused to pay back their loans.
With the level of data sharing between governments, it’s now impossible to run away to a corner of the world and leave all of those troubles behind; It’s not worth the risk. If you’re interested in similar guides or want to send money to any part of the world, please visit Lycaremit and register.