What happens to your student loan if you move abroad?
Moving overseas doesn’t make your student loan disappear. The Student Loans Company (SLC) continues to collect repayments regardless of where you live, and the rules for how much you pay change when you leave the UK.
You Must Notify SLC
If you’re planning to leave the UK for more than three months, you are legally required to inform SLC. This applies whether you’re moving for work, travel, or any other reason.
- Notify SLC within three months of moving abroad
- Provide your new overseas address and contact details
- Submit evidence of your income through the overseas income assessment form
- Continue providing income evidence annually to keep your repayments accurate
How Repayments Work Abroad
When you live in the UK, repayments are automatically deducted from your salary through PAYE. Abroad, the system works differently.
Country thresholds
Repayment rates
Direct payments to SLC
Country-by-Country: How Your Threshold Changes
SLC doesn’t use a single overseas threshold for everyone. Every country is placed into a price-level band that multiplies the UK threshold up or down based on local living costs, so the salary at which you start repaying can sit below or above the UK’s £29,385. This is where middle earners abroad feel it most — in a lower-threshold country, a mid-range salary that would barely trigger repayments at home can pull a much bigger slice into the 9% repayment band.
The process is the same wherever you go: notify SLC within three months, complete the overseas income assessment on your worldwide income (converted into pounds), and re-submit evidence every year. Only the threshold changes by country. Skip the assessment and SLC falls back to fixed repayment amounts that are usually higher than income-based ones.
| Destination | Plan 2 threshold (2026/27) | Compared to the UK |
|---|---|---|
| Spain | £23,510 | Lower — about 0.8× the UK band |
| UAE (Dubai) | £23,510 | Lower — about 0.8× the UK band |
| Australia | £29,385 | Matches the UK threshold |
| Canada | £29,385 | Matches the UK threshold |
| New Zealand | £29,385 | Matches the UK threshold |
| United States | £35,260 | Higher — about 1.2× the UK band |
Figures are SLC’s Plan 2 (undergraduate) overseas thresholds for 2026/27, set against the UK threshold of £29,385. Other plans use a different base figure, and SLC revises every country each April — always check the latest figures on GOV.UK.
- Australia, Canada & New Zealand: currently sit in the same band as the UK, so your threshold matches the home figure and repayments feel much like they did in the UK.
- Spain: a lower band pulls the threshold below the UK’s, so repayments start earlier — a classic squeeze on middle earners.
- UAE (Dubai): there is no local income tax, but your UK student loan is separate from that — the SLC threshold is still lower than the UK’s, so a tax-free salary is caught sooner, not exempted.
- United States: a higher band lifts the threshold above the UK’s, so you keep more of your salary before repayments begin.
If you fail to complete the overseas income assessment, SLC doesn’t simply stop collecting. Instead, they apply fixed repayment amounts that are not based on your actual income.
- Fixed amounts can be significantly higher than what you would pay based on your real income
- This effectively acts as a penalty for not engaging with the process
- You can avoid this by submitting your income evidence on time each year
Consequences of Non-Compliance
Ignoring your student loan obligations while abroad can have serious consequences. SLC has several enforcement mechanisms available.
- SLC can take legal action to recover the debt.
- Your debt may be passed to collection agencies.
- If you return to the UK, missed payments could affect your credit record.
- Additional penalties and interest may be applied to your balance.
- HMRC can resume automatic deductions from your salary if you return to UK employment.
Practical Steps Before You Move
If you’re planning to move abroad, take these steps to stay on top of your loan.
Notify SLC
Inform SLC of your move and new address as early as possible.
Complete the overseas income assessment
Submit the form to ensure your repayments are based on your actual income.
Check your country’s threshold
Look up the SLC website so you know what to expect for your destination.
Set up a payment method
Arrange a way to make direct repayments to SLC from abroad.
Keep records
Save all correspondence and payment confirmations with SLC.
Set annual reminders
Resubmit income evidence before the deadline each year.
Moving Abroad: Frequently Asked Questions
Does your student loan get wiped if you move abroad?
No. Moving abroad does not cancel your student loan or wipe the balance, and there is no rule that writes it off after three years overseas. Your loan is only written off at the end of your plan's term — typically 25, 30 or 40 years depending on your plan — and that clock keeps ticking wherever you live, whether or not you make repayments. Living abroad changes how much you repay, not whether the balance still exists.
What happens to my student loan if I move to Canada, Australia or New Zealand?
You must tell the Student Loans Company within three months of leaving and complete the overseas income assessment. Australia, Canada and New Zealand currently sit in the same price band as the UK, so your repayment threshold stays close to the UK figure (£29,385 for Plan 2 in 2026/27). You then repay 9% of income above that threshold, with your overseas earnings converted into pounds.
Do I still repay my student loan in Dubai if there's no income tax?
Yes. UK student loan repayments are completely separate from local income tax, so a tax-free salary in the UAE does not exempt you. The UAE threshold is actually lower than the UK's (£23,510 versus £29,385 for Plan 2 in 2026/27), so a Dubai salary can trigger repayments earlier than the same salary would at home.
Which countries have a lower student loan repayment threshold?
Countries with a lower cost of living than the UK are placed in a lower price band, which reduces the salary at which repayments begin. For Plan 2 in 2026/27, Spain and the UAE sit around £23,510 — below the UK's £29,385 — while higher-cost countries such as the United States are higher, at £35,260. A lower threshold hits middle earners hardest, because more of a mid-range salary falls into the 9% repayment band.
Do I still pay my student loan if I move abroad?
Yes. Moving abroad does not cancel your student loan. You must notify the Student Loans Company within three months of leaving the UK, provide evidence of your overseas income, and make repayments based on country-specific thresholds set by SLC.
What happens if I don't tell SLC I've moved abroad?
If you fail to provide income evidence, SLC will apply fixed repayment amounts that can be significantly higher than what you would pay based on your actual income. They may also take legal action, pass your debt to collection agencies, or apply penalties and additional interest.
How are student loan repayments calculated when living overseas?
SLC sets country-specific repayment thresholds based on the cost of living in your country of residence. You still repay 9% of income above the threshold (6% for Postgraduate loans), but the threshold itself varies by country rather than using the standard UK figure.
What happens to my student loan if I emigrate from the UK?
Your loan remains active regardless of where you live. When you emigrate, you must contact the Student Loans Company within three months, complete an overseas income assessment, and switch to country-specific repayment thresholds. The write-off date stays the same — emigrating does not reset or extend it.
Can I avoid paying my student loan by moving abroad?
No. The Student Loans Company actively tracks overseas borrowers and has legal powers to pursue repayment internationally. If you do not respond to income assessments, SLC will impose fixed repayment amounts that are often much higher than income-based repayments. They may also refer your account to debt collection agencies or take court action.
Key takeaways
- Moving abroad does not cancel or pause your student loan repayments.
- You must notify SLC within three months and provide annual income evidence.
- Repayment thresholds vary by country based on local cost of living.
- Failing to engage with SLC results in fixed repayment amounts that are typically higher than income-based payments.
- Non-compliance can lead to legal action, collection agencies, and credit impacts if you return to the UK.
- Before you move, check your remaining balance and repayment timeline with the repayment calculator.