STUDENT DEBT REPAYMENT FROM ABROAD
A student loan repayment from overseas is by definition a student funding settlement from abroad and is a process which is dedicated to every student or former student who has obtained a loan from a country and who has moved abroad.
The student loan repayment from overseas some years ago wasn’t really necessary since graduate students who moved to overseas weren’t under the obligation to make payments on their loans, the problem is since more are moving abroad the lenders have changed their policy.
The student loan repayment from abroad is treated equally to a loan repayment in the home country of a student with some differences as to the salary threshold used for each country abroad where students have to start to repay.
The student loan repayment for overseas considers that student loans when moving to abroad can be charged with additional penalizing fees if a student fail to meet his/her obligations to make the repayment from overseas as the student loan companies expect to have around 10% of their earnings (when they have a job) allocated to repayments.
WHILE BEING IN OVERSEAS, WHEN IS A STUDENT LOAN WRITTEN OFF?
The rules for student loan write-offs depend less on whether you’re overseas and more on the loan scheme and country where your loan was taken. If you are overseas, the same rules usually apply, but repayment is calculated differently.
Here’s a breakdown for UK student loans (common for borrowers who later move abroad):
- Plan 1 loans (mostly pre-2012 undergraduates): Written off 25 years after April you were first due to repay, or when you turn 65, whichever comes first.
- Plan 2 loans (undergraduates from 2012 onwards in England/Wales): Written off 30 years after April you were first due to repay.
- Plan 4 (Scottish loans): Written off after 30 years or at age 65.
- Postgraduate loans: Written off 30 years after April you were first due to repay.
👉 If you move overseas, you still need to make repayments based on your income in that country, using thresholds set by the Student Loans Company (SLC). If you don’t provide income proof, they may put you on a default high repayment rate. But the write-off rules (25–30 years / age 65) still apply the same way.
For US Federal Student Loans:
- Forgiveness/write-off is possible after 20–25 years under income-driven repayment plans, or through Public Service Loan Forgiveness (PSLF).
- Moving abroad doesn’t change the write-off period, but it can complicate income reporting.