Student Loan Repayment from Overseas

[jingo 38]

Looks like it's been a few years since this topic has been broached so thought I'd see if anyone has any updated info for 2021.

 

If you moved to the US with an outstanding SLC student loan in the UK, what are the best methods of tackling it? Has anyone moved that debt over to the US? What are the lowest fees / best exchange rates for paying with a US credit card? Or is it cheaper to transfer money to your UK bank account and pull it out of there?

 

Would love to hear all and any experiences with this. Thank you!

[coltr 92]

Student Loan Company no longer accept payment by credit cards unfortunately. I’ve been paying through their repayments site using my US debit card (Charles Schwab bank) by paying in GBP with no additional processing or exchange fees. Make sure your bank does not charge you for foreign transactions though. Schwab are fee-free, but many of the brick-and-mortar banks are not.

 

Note that if you select the option to pay in USD, Student Loan Company will send you to a third-party who do charge a conversion fee, so don’t use that option unless it’s somehow cheaper. Select to pay in GBP with a foreign debit card and let your bank handle the conversion (but check your bank’s fees!).

 

SLC reach out to me annually asking me for 3 paystubs which I provide, and then they calculate my repayment amount for the tax year. My understanding is that if you don’t respond they calculate a flat rate based on your country’s average income which you would pay back regardless of your individual level of income. However since they threaten penalties if you don’t respond to their letters I’ve always just submitted what they ask for.

 

In terms of moving the debt to the US, in my case the interest rate SLC are charging me is much lower than the banks would offer here, and also loan repayments to SLC adjust with my income so if I were suddenly unemployed I wouldn’t risk my credit, so I didn’t consider the option of a US loan.

Edited April 27, 2021 by coltr

[Absolutely 34]

I used Transferwise to send money from my US bank back to my UK account. SLC will send you an email every so often (6 months or a year, can't remember exactly) with your monthly amount so you know how much to send over.