I heard that student debt get&#x27;s wiped if you work in a different country for x years

I think my mum's friend son lives in America, and he hasn't and isn't paying off his student loan. As I understand it though, the debt isn't wiped out, and if he comes back to the UK, he'll be hit with it big time.

Reply 4

Johnthebaptist1

The debt is written off if you don't work for 15 years, or might be 20? Not sure.

The only way they know if you're working is through your NI number, tax contributions/assesments etc.

If you're not paying tax for the same amount of years because you are working abroad, it will eventually get written off. However, you are still legally obliged to pay that money while you are abroad. The only difference being HMRC can't take the money from your wage like they do in the UK. Therefore, most people won't pay.

Similarly a lot of self-employed people or directors of companies keep their salaries below £15,000 (hence never liable to the student loan contributions). They obviously don't live off 15k a year.

Reply 5

Natasha_c

OP

Oh

got quite exited there, I'm planning to do a masters so I thought I could move to america for a but save up some money and go back with no debt... O well.

Reply 6

flipshot

13

Johnthebaptist1

The debt is written off if you don't work for 15 years, or might be 20? Not sure.

Its 25 years and its not just if you don't work. Its whatever you haven't paid back in 25 years they write off, so if you worked and managed to pay back say £8000 but still had £10,000 left after 25 years they would write that off.

Reply 7

If you ever work abroad and make no payments then on your return your loan becomes repayable, in total, immediately. Read the small print of your agreement.

Reply 8

Johnthebaptist1

hypocriticaljap

If you ever work abroad and make no payments then on your return your loan becomes repayable, in total, immediately. Read the small print of your agreement.

I didn't know this..

Does that include if you go abroad but don't work there either?

Also, what if you make 1 or 2 payments to them.. and then go abroad and work for a x years (but they don't know this) and you come back?

Reply 9

Johnthebaptist1

flipshot

Its 25 years and its not just if you don't work. Its whatever you haven't paid back in 25 years they write off, so if you worked and managed to pay back say £8000 but still had £10,000 left after 25 years they would write that off.

Sorry thats what I should have said..

Reply 10

AnonymousPenguin

16

Johnthebaptist1

I didn't know this..

Does that include if you go abroad but don't work there either?

Also, what if you make 1 or 2 payments to them.. and then go abroad and work for a x years (but they don't know this) and you come back?

They'd probably want you to prove you earned below the minimum while you were abroad. There are different minimums defined for different countries.

Reply 11

Johnthebaptist1

I didn't know this..

Does that include if you go abroad but don't work there either?

Also, what if you make 1 or 2 payments to them.. and then go abroad and work for a x years (but they don't know this) and you come back?

You signed a legally binding agreement that if you leave the country you will inform them of when you leave and when you plan to return and what you will earn and if you aren't going to be earning then they require evidence of how you will keep yourself. Its all on the Student Loan Company website.

Reply 12

6 years abroad without contact from the SLC or debt collectors and you're free without any debts.

You best enjoy 6 years of hiding.

Reply 13

Original post by jb9191

6 years abroad without contact from the slc or debt collectors and you're free without any debts.

You best enjoy 6 years of hiding.

this is utter rubbish

I do wish people who have obviously not read one word of the SLC agreement they signed would not post crap on this site.

(edited 13 years ago)

Reply 14

Original post by hypocriticaljap

this is utter rubbish

I do wish people who have obviously not read one word of the SLC agreement they signed would not post crap on this site.

http://www.freedebtadvice-uk.com/2010/10/moving-abroad-to-run-from-your-debts/

I wish you would not jump down peoples throats. After 6 years of no contact a loan (debt) can be declared statute.

Creditors have many tools in order to trace those that owe money and have quite a few tricks up their sleeve in order to trace debtors. They may talk to the neighbours, go to the last known address etc etc. Once a collection agency knows which country the debtor has moved to they can then easily start to try and recover the debt.

If a creditor is to successfully get the debt repaid, they have a period of 6 years from the last time the debt was acknowledged to recover the money using the legal system. If a creditor has taken legal action, the debt will never go away and can be indefinitely recoverable.

If the debt collector does not contact you within 6 years or take legal action then you can declare it statute barred.

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php

OFT Debt Collection Guidance

The Office of Fair Trading (OFT) has issued Debt Collection guidance which looks at whether a debt is being collected fairly. They say:

•

It is unfair to pursue the debt if you have heard nothing from the creditor for 6 years.

•

The OFT thinks it is fair to keep trying to recover the debt if the creditor has been in regular contact with you during this time.

•

It is unfair to mislead you be saying the debt is still legally recoverable when it isn’t.

•

It is unfair to keep pressing for payment after you have told them you won’t be paying the debt because it is statute barred.

•

If this happening then you can complain to your local Trading Standards Department in the council. They can take up your case for you. You can also complain to the OFT. Their address is at the end of the factsheet. The OFT does not usually take up individual cases but their Debt Collection Licensing Enforcement Team collects information that can be used to take action against problem creditors, who can even lose their Consumer Credit licence.

Obviously the SLC are not going to include one of the biggest loopholes ever known to the SLC on their site are they? Otherwise many more people would know about it and would do it leaving the SLC in a bigger hole chasing down more people.

Its because of this very loophole that this is happening.

http://news.bbc.co.uk/1/hi/education/7912548.stm

Now who is the idiot posting crap?

You seriously must be dumb if you think the SLC will post such a thing on their site.

Reply 15

TheFlyingDutchman

7

Original post by jb9191

http://www.freedebtadvice-uk.com/2010/10/moving-abroad-to-run-from-your-debts/

I wish you would not jump down peoples throats. After 6 years of no contact a loan (debt) can be declared statute.

Creditors have many tools in order to trace those that owe money and have quite a few tricks up their sleeve in order to trace debtors. They may talk to the neighbours, go to the last known address etc etc. Once a collection agency knows which country the debtor has moved to they can then easily start to try and recover the debt.

If a creditor is to successfully get the debt repaid, they have a period of 6 years from the last time the debt was acknowledged to recover the money using the legal system. If a creditor has taken legal action, the debt will never go away and can be indefinitely recoverable.

If the debt collector does not contact you within 6 years or take legal action then you can declare it statute barred.

http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php

OFT Debt Collection Guidance

The Office of Fair Trading (OFT) has issued Debt Collection guidance which looks at whether a debt is being collected fairly. They say:

•

It is unfair to pursue the debt if you have heard nothing from the creditor for 6 years.

•

The OFT thinks it is fair to keep trying to recover the debt if the creditor has been in regular contact with you during this time.

•

It is unfair to mislead you be saying the debt is still legally recoverable when it isn’t.

•

It is unfair to keep pressing for payment after you have told them you won’t be paying the debt because it is statute barred.

•

If this happening then you can complain to your local Trading Standards Department in the council. They can take up your case for you. You can also complain to the OFT. Their address is at the end of the factsheet. The OFT does not usually take up individual cases but their Debt Collection Licensing Enforcement Team collects information that can be used to take action against problem creditors, who can even lose their Consumer Credit licence.

Obviously the SLC are not going to include one of the biggest loopholes ever known to the SLC on their site are they? Otherwise many more people would know about it and would do it leaving the SLC in a bigger hole chasing down more people.

Its because of this very loophole that this is happening.

http://news.bbc.co.uk/1/hi/education/7912548.stm

Now who is the idiot posting crap?

You seriously must be dumb if you think the SLC will post such a thing on their site.

So even if said person has not given his creditors his change of address this stilll applies ?

How were they supposed to contact him ?

Reply 16

Original post by TheFlyingDutchman

So even if said person has not given his creditors his change of address this stilll applies ?

How were they supposed to contact him ?

they are the ones who have to try and make contact.

If you move abroad and then move again without informing them then they have 6 years to find you and issue you with a legal notice to either pay back the loan or they will see you in court.

If they make this contact after 6 years then the loan can be statute barred.

Seeing as you have to declare loans when leaving the UK then they'd know what country you were in with a bit of basic research. However, once in a country like the US its pretty easy to move from the state of New York to Texas in the middle of nowhere for 6 years without informing them and therefore they then have 6 years to make contact.

Whether they catch you or not entirely depends on how good they are at tracking people down and those who do this must also remember that if they've had enough they can sell your debt to a company in the country you have run to so instead of the SLC issuing a court notice for income based payments or direct debit payments (as it is abroad) you may get chased down by a company in the US demanding the whole sum at once.

That's why its far better to pay back the loan in the correct method realistically, otherwise, enjoy trying to hide for 6 years.

Bear in mind they will check things like Facebook, pester your friends & family and so on. So is a life on the run really worth giving up things you enjoy, annoying people in your family and even damaging relationships and the possibility of being presented with a lump sum payment notice? I don't think so.

Unless you are planning on moving into the cave next to Osama Bin Laden then there is a good chance you'll get caught.

Its all a gamble and whether it pays off or not is entirely down to luck and how well the SLC pursue your case.

(edited 13 years ago)

Reply 17

Original post by jb9191

they are the ones who have to try and make contact.

If you move abroad and then move again without informing them then they have 6 years to find you and issue you with a legal notice to either pay back the loan or they will see you in court.

If they make this contact after 6 years then the loan can be statute barred.

Seeing as you have to declare loans when leaving the UK then they'd know what country you were in with a bit of basic research. However, once in a country like the US its pretty easy to move from the state of New York to Texas in the middle of nowhere for 6 years without informing them and therefore they then have 6 years to make contact.

Whether they catch you or not entirely depends on how good they are at tracking people down and those who do this must also remember that if they've had enough they can sell your debt to a company in the country you have run to so instead of the SLC issuing a court notice for income based payments or direct debit payments (as it is abroad) you may get chased down by a company in the US demanding the whole sum at once.

That's why its far better to pay back the loan in the correct method realistically, otherwise, enjoy trying to hide for 6 years.

Bear in mind they will check things like Facebook, pester your friends & family and so on. So is a life on the run really worth giving up things you enjoy, annoying people in your family and even damaging relationships and the possibility of being presented with a lump sum payment notice? I don't think so.

Unless you are planning on moving into the cave next to Osama Bin Laden then there is a good chance you'll get caught.

Its all a gamble and whether it pays off or not is entirely down to luck and how well the SLC pursue your case.

One day pillocks like you will understand that a student debt is exempt from all of these regs. In the same way that bankruptcy does not discharge a student debt, unlike any other debt.
I repeat STOP POSTING CRAP

Reply 18

Joinedup

20

IT's not like ordinary debt - you can't get rid of student loan debt even by going bankrupt. the legal situation is different to other sorts of consumer credit

-edit-as pointed out already by someone else I see.

(edited 13 years ago)

Reply 19