1. Home
  2. Tax Guides
  3. Students
  4. Student loans
  5. What happens with my student loan if I go abroad?

What happens with my student loan if I go abroad?

Updated on 12 April 2023

Students

If you go abroad and are no longer within the UK tax system, HM Revenue & Customs (HMRC) stop being involved in your student loan repayments and the Student Loans Company (SLC) takes over.

Illustration of people travelling with luggage and a map of the world

I am going abroad, how will I repay my student loan?

If you go overseas for more than three months, you must let the Student Loans Company (SLC) know – their contact details and online form can be found on GOV.UK. 

If you secure employment abroad for more than three months and are paid abroad, the SLC will ask for the name of the employer and evidence of the salary, this is called an Overseas Income Assessment. They will probably ask you to set up a direct debit repayment arrangement. The level of your repayment will depend on your overseas earnings.

If you want someone else to act on your behalf when dealing with the SLC then you must first give your consent to the SLC either by phone or in writing by post.

However, the repayment threshold relevant to the country you are going to is not necessarily the same as the threshold in the UK (for the 2023/24 tax year these are £22,015 for Plan 1 income-contingent repayment student loans, £27,295 for Plan 2 income-contingent loans, £21,000 for postgraduate loans and £27,660 for Plan 4 income-contingent loans). Thresholds vary according to comparison calculations between the cost of living in the UK and the other country. GOV.UK gives the thresholds for Plan 1 loans, Plan 2 loans, Plan 4 and postgraduate loans. The SLC uses the repayment thresholds over a 12-month period from when you are working abroad, so this may differ from the UK tax year (which runs from 6 April to 5 April).

If you do not contact the SLC to complete an Overseas Income Assessment, then repayment arrears may build up on your loan account. If this happens then you should contact the SLC, there is more information on what you should do on GOV.UK.

What happens to my student loan repayments when I return to the UK?

If you have been away overseas and return to the UK for three months or more, you should let the Student Loans Company (SLC) know. This is important because if you find employment in the UK, you might need to start making Pay As You Earn (PAYE) repayments again and you will need to cancel any separate arrangements that you have made direct with the SLC.

If you have been abroad and then return to the UK, it is important to understand whether you have made overpayments on your loan. This situation can arise when you have been paying your loan repayments direct to the SLC and you are then asked by HMRC to complete a Self Assessment tax return. Your tax return will include all your worldwide income and your student loan repayments will be calculated on this income using the UK repayment thresholds and so will not automatically take into account the overseas repayments you have made directly to the SLC. If you are in this position and you do not want to make overpayments, you must contact the SLC to transfer the direct overseas repayments to HMRC and then apply to HMRC, using an informal ‘stand over’, to ensure overpayments are not deducted.

It is recommended that you check your loan account to ensure that all repayments have been accounted for (those made through the Self Assessment process to HMRC and those directly paid to the SLC).

You can find out more about working abroad temporarily elsewhere in our Going abroad pages.

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?
Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

Share this page