ESTIMATEIllustrative estimates for the 2026/27 tax year (6 April 2026 – 5 April 2027) as of 3 November 2026 — not financial advice. Thresholds from GOV.UK; interest rates for 1 September 2026 – 31 August 2027 from the Student Loans Company. Your payslip may differ by a pound or two because payroll rounds each pay period.
Why moving abroad changes how you repay
In the UK your student loan is collected by your employer through PAYE or by HMRC through Self Assessment. Once you leave the UK tax system, neither route works, so the Student Loans Company collects repayments directly. The loan terms do not change: the same plan, interest rules and write-off date apply wherever you live. A Plan 2 balance is still cancelled 30 years after the April you were first due to repay, even if you spend most of those years abroad.
Step by step
- Tell the SLC before you go if you will be abroad for more than three months — through your online account or the overseas contact form. This applies to working abroad, travelling and studying.
- Complete the overseas income assessment and send evidence of your income (for example a contract or payslips, translated if needed). The SLC uses this to work out what you should pay.
- The SLC sets a country-specific threshold. Overseas thresholds are adjusted for the cost of living in each country, so the point at which you start repaying differs from the UK figures — it can be lower or higher. You still repay 9% (6% for a Postgraduate Loan) of income above it, collected as fixed monthly instalments.
- Pay directly by Direct Debit from a UK bank account, by international bank transfer or by card.
- Update your details every year and whenever your income or country changes. The SLC normally asks for a new assessment annually.
What happens if you don’t tell the SLC
If the SLC cannot get income information for you, it can put you on fixed monthly repayments based on the country you live in, regardless of what you actually earn. Missed payments build up as arrears. For Plan 2 borrowers, the SLC may charge the maximum interest rate when it has no income information — in 2026/27 that is the 6% cap rather than a rate as low as 4.1%. Ignoring the loan does not make it go away: the SLC can trace borrowers, and arrears remain owed until the loan is written off.
Example: a Plan 2 graduate earning the equivalent of £45,000
In the UK, £45,000 means £117 a month in Plan 2 repayments through payroll. Abroad, the same income is converted to sterling and compared with the overseas threshold for your country. In a lower-cost country the threshold is lower, so you could pay more than in the UK; in a high-cost country it can be higher, so you may pay less. The only way to know is to complete the assessment — the SLC publishes the thresholds by country on GOV.UK.
Coming back to the UK
Tell the SLC when you return and start work. Your employer will be told to resume PAYE deductions, and any Direct Debit should be cancelled so you do not pay twice. If you overpaid while abroad — for example because your income fell — you can ask for a refund for that period.
Common questions before you go
- Working remotely for a UK employer from abroad? If you stay on UK payroll, deductions may continue through PAYE; tell the SLC anyway so your record matches your circumstances.
- Moving abroad soon after graduating? Repayments start from the April after you leave your course, just as they would in the UK.
- Can I just pay the loan off before leaving? You can — but read should I overpay first; if you would never clear it, paying it off early costs more.
FAQ
Do I have to repay my student loan if I move abroad?
Yes. Your loan terms do not change. You must tell the Student Loans Company and repay directly based on your overseas income and a threshold set for your country.
How much do I repay on a student loan abroad?
The SLC sets an overseas threshold for each country, adjusted for living costs, and you repay 9% (6% for a Postgraduate Loan) of income above it, usually as fixed monthly payments.
What happens if I do not tell the SLC I have moved abroad?
You can be put on fixed monthly repayments regardless of income and build up arrears. Plan 2 borrowers may also be charged the highest interest rate if the SLC has no income information.
Is a student loan still written off if I live abroad?
Yes. The write-off rules are the same wherever you live — for example 30 years after the April you were first due to repay for Plan 2.
How long can I be abroad before telling the SLC?
You should tell the Student Loans Company if you are going abroad for more than three months.
Related student loan articles
When is my student loan written off?25, 30 or 40 years — find your datePostgraduate Loan repayments6% over £21,000, on top of Plan 2 or 5Repaying two student loans at oncePlan 1 + Plan 2, Plan 2 + PostgraduateHow to get a student loan refundBonus months, low earners and overpayingStudent loan thresholds 2026/27Every plan, per year, month and weekWhich student loan plan am I on?Plan 1, 2, 4, 5 or PostgraduatePlan 2 vs Plan 5 explainedThresholds, interest and lifetime costStudent loan on £45,000Plan 2 £117/mo · Plan 5 £150/moStudent loan on £60,000Plan 2 £229/mo · Plan 5 £262/moStudent loan repayment calculatorAll plans, any salary
Sources
- GOV.UK, Repaying your student loan – what you pay: 2026/27 thresholds Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000, Postgraduate Loan £21,000; 9% (6% for PGL) of income above the threshold; rules for more than one plan (read 3 November 2026).
- Student Loans Company / Department for Education, Student loans interest rates and repayment threshold announcement, 10 August 2026: RPI 4.1%; Plan 1 4.1%; Plan 2 4.1%–7.1% capped at 6%; Plan 3 (Postgraduate) capped at 6%; Plan 5 4.1% (1 Sep 2026 – 31 Aug 2027); Plan 1 threshold £28,005 from 6 April 2027.
- Department for Education press release, Interest rate cap introduced to protect Plan 2 borrowers, 7 April 2026, and written ministerial statement of 13 April 2026: 6% cap for 2026/27; Plan 2 upper interest threshold £52,885 from 6 April 2026.
- Autumn Budget 2025 (26 November 2025): Plan 2 repayment threshold frozen at £29,385 for 2027/28 to 2029/30 (reported by Which?, 5 December 2025).
- Take-home pay: HMRC 2026/27 income tax and National Insurance for England, Wales and Northern Ireland (personal allowance £12,570, 8%/2% employee NI), as used on our UK salary after tax pages.