Moving Abroad & Student Loans
If you move abroad, you still have to deal with your UK student loan. The key changes are that you report your income to SLC directly, use a country specific threshold, and pay SLC rather than relying on UK payroll.
⚡ Key Points
Yes, you must tell the Student Loans Company within 3 months if you move abroad for work or a longer stay. After that, repayments are usually based on the threshold for your new country and paid directly to SLC instead of being taken through UK payroll.
- ✓ You must tell the Student Loans Company (SLC) when you move abroad
- ✓ Repayment thresholds are adjusted for each country's cost of living
- ✓ You'll make fixed monthly payments directly to SLC (not via employer)
- ✓ Failing to inform SLC can result in penalties and fixed repayment amounts
Notification Deadline
3 months
after leaving the UK
Proof Required
Annual
income evidence each year
Fixed Rate Penalty
Up to £580/month
if you don't report income
What Happens When You Move Abroad?
When you leave the UK, PAYE usually stops dealing with your student loan. An overseas employer will not make the deduction for you, so SLC moves you onto an overseas income assessment instead.
1. You notify SLC
Complete an "Overseas Income Assessment" form with your destination country and expected income.
2. SLC sets your threshold
Your repayment threshold is adjusted based on the cost of living in your new country (often higher than UK thresholds).
3. You make direct payments
You pay SLC directly via bank transfer or Direct Debit, usually monthly.
4. Annual income verification
Each year you provide evidence of income (payslips, tax returns) to recalculate payments.
Country Specific Repayment Thresholds
ℹ️How Thresholds Are Set
SLC uses World Bank data to set thresholds for each country. Countries with a higher cost of living than the UK have higher thresholds, meaning you may pay less. Countries with a lower cost of living have lower thresholds.
Here are examples of 2025/26 annual thresholds for popular destinations (Plan 2):
| Country | Threshold | vs UK (£28,470) |
|---|---|---|
| 🇺🇸 USA | £32,490 | +19% higher |
| 🇦🇺 Australia | £33,035 | +21% higher |
| 🇨🇭 Switzerland | £44,880 | +64% higher |
| 🇩🇪 Germany | £28,385 | +4% higher |
| 🇫🇷 France | £27,295 | Same |
| 🇪🇸 Spain | £22,610 | -17% lower |
| 🇵🇹 Portugal | £20,425 | -25% lower |
| 🇦🇪 UAE | £29,475 | +8% higher |
| 🇸🇬 Singapore | £35,490 | +30% higher |
Full threshold tables are published by SLC annually. These figures are approximate, always check the official SLC documentation for your destination.
How Overseas Payments Work
💳 Payment Methods
- • Direct Debit (if UK bank account)
- • Bank transfer (international)
- • Online via SLC portal
Payments are made in GBP, exchange rates are your responsibility.
💰 Currency & Exchange Rates
Your income is converted to GBP for threshold calculations. SLC uses published exchange rates, not the rate on the day you're paid.
📝 Example: Moving to Australia
James earns AUD 90,000 (approx £47,000) in Sydney. Plan 2 borrower.
James pays £105/monthdirectly to SLC. If he earned the same amount in the UK, he'd pay £148/month, moving to Australia saves him £43/month due to the higher threshold.
Documentation Required
SLC needs proof of your income to calculate repayments. You'll need to provide:
Required Documents
Completed Overseas Income Assessment form (from SLC website)
Proof of employment (contract, offer letter)
Payslips or salary statements (translated if not in English)
P60/tax returns from your destination country
Proof of address in your new country
Evidence of any allowances or benefits included in pay
💡Self Employed Abroad?
If you're self employed overseas, you'll need to provide tax returns, business accounts, or a statement from a local accountant confirming your income. This can be more complex, allow extra time for processing.
What Happens If You Don't Report?
❌⚠️ Serious Consequences
Failing to inform SLC when you move abroad is treated seriously. Consequences include:
- Fixed repayment amount: SLC will assume you earn enough to pay the maximum (up to £580 a month)
- Arrears accumulation: Unpaid amounts plus interest add up
- Credit agency notification: Can affect UK credit file
- Debt collection: SLC may use international debt recovery
- Legal action: In extreme cases, court proceedings are possible
If you've already moved and haven't notified SLC, contact them immediately. Coming forward voluntarily is better than waiting to be caught, they may be more lenient about backdated amounts.
Special Situations
🛫 Short Term Contracts or Secondments
If you're abroad for less than 3 months, you may not need to complete the overseas assessment. Check with SLC, rules depend on whether UK PAYE continues.
🌍 Remote Working (Digital Nomads)
If you're paid by a UK employer but working abroad, you might still be in PAYE. However, if you become tax resident elsewhere, you'll likely need to switch to overseas income assessment. Get professional advice.
🔄 Returning to the UK
When you return, notify SLC within 3 months. Once you're back in UK employment and PAYE, automatic deductions resume. You'll stop making direct payments.
🏖️ Not Working / Gap Year
If you're moving abroad but not working (e.g., travelling, studying, or retired), you still need to inform SLC. With no income, you won't make repayments, but you must provide evidence.
Moving Abroad Checklist
Before You Leave
Download the Overseas Income Assessment form from SLC
Note down your SLC customer reference number
Set up online access to your SLC account
Keep your UK bank account open (easier for payments)
Gather income documentation from your new employer
⚠️Sign in to check your interest rate
After You Arrive
Submit your Overseas Income Assessment within 3 months
Set up your payment method with SLC
Save all payslips and tax documents for annual reviews
Set a calendar reminder for annual income verification
Update SLC if your income changes significantly mid year
Good News: Write Off Still Applies
✅Your Loan Can Still Be Written Off
The write off rules apply regardless of where you live. Plan 2 loans are written off 30 years after the April following graduation, whether you're in the UK, Australia, or anywhere else. Moving abroad doesn't extend this period.
For many borrowers, especially those moving to higher cost countries with higher thresholds, living abroad can actually mean lower total repayments over your lifetime.
Plan Your Move
Calculate how your repayments will change when moving abroad using our tools.