Living overseas with a UK student loan is different from the usual repayment method followed by the majority of graduates from UK universities. In this video I explain everything from the thresholds based on which country you are living in, how your repayment is determined and how to make repayments from overseas, as well as whether you should consider repaying your loan off early.

If you're living in the UK and have a Plan 2 student loan, you'll only start repaying it once you're earning over £27,295.00 per year, and you'll pay back 9% of anything over that amount. If you're eligible to start repaying your loan, the payment is automatically deducted from your payslip by HMRC, so you don't need to worry about making manual payments. You'll continue to make payments for up to 30 years, after which any remaining debt is cancelled.

However, if you're living overseas, the thresholds for repayment are different depending on which country you're in. The idea behind this is to reflect the equivalent cost of living in the UK with the money you earn overseas. You'll need to provide evidence of your income each year and make manual payments via direct debit, either through a UK bank account or an account like Wise.

Does the change in repayment threshold mean some people might clear their loan sooner? According to Martin Lewis, you'd need to be on a very high salary before you consider paying off your loan early. With a lower repayment threshold, it might be tempting to think about paying off your loan earlier, but there are many factors to consider.

For example, repayment thresholds can change depending on economic situations, and exchange rates between GBP and local currencies can also affect the repayment amount. You might also return to the UK, where the repayment threshold is higher, after overpaying your loan. Therefore, it's difficult to make an accurate prediction on how quickly you'll pay off your loan when living abroad.

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Mentioned in this video:
🔹 Overseas Payment Thresholds 2022-2023: [ Ссылка ]
🔹 Wise - A cheaper, faster way to send money abroad: [ Ссылка ]

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Chapters:
0:00 - Intro
1:15 - How it works in the UK (Plan 2)
3:04 - Overseas income thresholds
4:31 - Overseas income assessment
5:53 - Payment methods from overseas
6:45 - Should you pay it off early?

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About me:

Welcome to Millennials With Money!

My name is Jonny, I'm a financial analyst from the UK, currently living and working in Spain.

I created this channel to help and inspire young people to improve their financial situation and live life to the full by sharing my own experiences with money and living abroad.

I upload content on a weekly basis about personal finance, how to invest your money, tips to help you save more money, real estate and property, and travel and living overseas.

Everybody is welcome in the Millennials With Money community! Let's get this money!!!

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#studentloans
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DISCLAIMER: The opinions and views shared on this channel are for entertainment and educational purposes only and are not to be taken as financial advice. Always conduct your own research prior to making any financial decision. Millennials With Money cannot be held responsible for any financial loss incurred from any decisions you make following this video.

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