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Original poster

Moving back to UK and outstanding student loan

11 replies

Studentloanhelp · 08/05/2023 14:25

I'm wondering if anyone has advice or a similar experience.

I have lived abroad for several years (EU country, as I have two passports), but am thinking of moving back to the UK in the next few years. The issue is I have an outstanding student loan from a masters I did and dropped out of. At the time I was having a horrible time in the city I had moved to for the masters, my relationship was ending, and other crappy stuff so I never completed the course.
Anyway, I ended up moving abroad to where one of my parents now lives. And I just kind of ignored the few thousand I owed. Which I know is stupid.

I have been here a few years and haven't been back to the UK because of Covid etc. But I'm thinking I will probably go back at some point in the next 5 years. Obviously I know I still have to repay the loan plus interest, which I'm happy to do once I get a job there.

However, I have read that the SLC sometimes instigate legal action against people for the full amount up front - does anyone know what the chances of that happening are? I'm not expecting them to arrest me at the airport or anything, but has anybody dealt with this and know what to expect?

OP posts:
greyhairnomore · 08/05/2023 15:05

I don't know about legal action but they can't have it if you don't have it, so surely you'd be able to arrange a payment plan ?

GasPanic · 08/05/2023 15:05

Dunno - it's an interesting one.

Personally I think anyone who has knowledge of your NI number (I assume they have this) has got you by the short and curlies.

Losingweightissohard · 08/05/2023 15:16

Have you been earning money in the EU country that takes you above the threshold? If not don’t worry.

Reugny · 08/05/2023 15:16

They could have sold your debt off to a debt recovery firm it depends on when and what style of loan you took out.

They did that to someone I knew years ago because she couldn't be bothered to keep them up to date with her earnings.

There as myself and others who worked abroad for a few years kept them up to date while we were abroad, made sure we earned under the repayment threshold and were left alone.

I would contact them now from abroad to see what has happened to your loan and then you can decide what to do.

gogohmm · 08/05/2023 15:17

Contact them and arrange a payment plan, it won't just disappear

Scottishskifun · 08/05/2023 15:20

Is it with the student loan company or was it a career development loan from a bank?
If the bank one then you would have defaulted and the debt will have increased probably quite a lot! If student loan company then still would have sat there increasing but not as much!
Either way being an ostrich about it til you get back to the UK isn't going to help give them a call.

Original poster
Studentloanhelp · 08/05/2023 15:21

Thanks all, I have been only working part time for the last while here so definitely not earning enough to pay anything.

I know I will have to start paying if/when I go back, I'm just worried about being hit with a big bill up front.

OP posts:
Original poster
Studentloanhelp · 08/05/2023 15:23

Scottishskifun · 08/05/2023 15:20

Is it with the student loan company or was it a career development loan from a bank?
If the bank one then you would have defaulted and the debt will have increased probably quite a lot! If student loan company then still would have sat there increasing but not as much!
Either way being an ostrich about it til you get back to the UK isn't going to help give them a call.

It's definitely with the Student Loan Company (unless they passed it on to debt collectors).
I might try contacting them and making a few lump sum payments towards it before I go back to keep them off my case.
Like I said, I know I will have to pay it eventually when I earn enough in the UK, I just went through some horrible stuff and put it out of my head when I left, which is stupid I know.

OP posts:
Reugny · 08/05/2023 15:24

If you haven't earned enough and have the tax returns to prove it in the country you are in then definitely contact them asap.

They will have put loads of charges on and may expect you to start paying them back with your meagre earnings at some very small amount, but they are unable to get blood out of a stone.

Original poster
Studentloanhelp · 08/05/2023 15:29

Reugny · 08/05/2023 15:24

If you haven't earned enough and have the tax returns to prove it in the country you are in then definitely contact them asap.

They will have put loads of charges on and may expect you to start paying them back with your meagre earnings at some very small amount, but they are unable to get blood out of a stone.

That's a good idea, I might try to contact them and see if I can send on some proof of what I have been earning in the last few years, which definitely isn't enough. If I offer to make some payments towards it for the moment that might be ok.
I have just buried my head in the sand about it and focused on other things, I know I need to face it eventually.

OP posts:
YorkshireIndie · 08/05/2023 15:39

My brother returned to the UK to work after living for 5 years in the US. He just filled out a P46 and selected option B stating he did have a student loan and HMRC docked his student loan payment from his pay. He was not faced with any legal action. As far as I can remember from my student loan days that they just pause and restart payments if you return from living abroad.

I checked my student loan repayments and I have only paid off £2k of the actual debt in 6yrs 🙈

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