[pinkpiggy]

I've done a quick search but can't find anything relating to this subject so thought I'd post and see if anyone can answer this one for me. :uhoh

I've got a UK student loan which I wasn't repaying in the UK before we came out here which they have also deferred for the first year of our being in NZ.
In the UK you had to earn the national average wage before you had to make repayments and then they were on a sliding scale.

My question is this: does anyone know what the earnings threshold is in NZ before you have to start making repayments to the UK and is it still on a sliding scale?

[R&A]

I looked into this the other day - I have been in New Zealand for 6 months and not considered it before-whoops! They assess each country separately to determine what the earnings threshold is, NZ seems to be deemed equivalent with UK (which is another discussion entirely) and the amount you have to earn before making repayments is 15000 pounds. I am unsure whether there are differences depending on when the loan was taken out, mine was in 1999 if that helps. Thank for reminding me I need to send that form off sharpish. :-(

[R&A]

And - its calculated so that you only pay a percentage out of your pay which exceeds this amount.

See here -- http://www.slc.co.uk/thresholds/index.html

[pinkpiggy]

Thanks R&A. I had just found the same link myself - it would be interesting to see what exchange rate they use as a guide. You're right - using the equivalent of £15,000 UK pounds is another story entirely as is the method used for making payments. You need to make the payments by international bank transfers which obviously costs money at both the NZ and UK ends. :no

Would you be able to provide an update when you hear back from them?

[R&A]

I will try my best to remember to keep you updated, my memory is hopeless though :-) I'm just hooping it won't cause problems that I didn't let them know before I left, it was a genuine oversight and just got forgotten in the chaos of organising shipping and my visa. Payments were always taken from my pay directly so having to do bank transfers doesn't sound so convenient - or reliable considering my forgetfulness! lol

Let me know how you get on too.

[pinkpiggy]

Will do - although I don't have to do anything until at least May!

[R&A]

Will do - although I don't have to do anything until at least May!

I said I'd let you know - only just rememered though! I sent the form off and because I hadn't been working fulltime and largely was being supported by my other half my repayments have been deferred for a year. I will be starting fulltime work in a few weeks and will be above the threshold (but only by few thousand dollars depending on exchange rate) but I wont be contacting them again until my year is up.

[pinkpiggy]

Thanks for the update.

[wozzo]

I just looked at that website quotes above and it seems to say NZ is NOT equivalent with the UK. You start paying back when you're earning £12000. Has anyone started doing this? How do you make repayments?

[R&A]

I just looked at that website quotes above and it seems to say NZ is NOT equivalent with the UK. You start paying back when you're earning £12000. Has anyone started doing this? How do you make repayments?

Interesting - well it was definitely £15,000 when I checked those few months ago - I suppose that could have changed though. I looked into it and there are forms you can fill in one the SLC website to set up a direct debit for a monthly amount - thoughtful of the really! :) I filled my forms in before I had a fulltime job here and so received a letter back saying I didn't need to pay anything until the following year.

Good luck with it all.

[Potato]

Don't you get landed with an international banking fee for every $NZ -> GBP transfer you perform (in order to fill your UK account with money for the direct debit)?
If that's the case then it's a really bad deal. I think with tranzfers.com , they charge £8 per transfer. About $250 a year just for the pleasure of paying back your UK loan?

[R&A]

Don't you get landed with an international banking fee for every $NZ -> GBP transfer you perform (in order to fill your UK account with money for the direct debit)?
If that's the case then it's a really bad deal. I think with tranzfers.com , they charge £8 per transfer. About $250 a year just for the pleasure of paying back your UK loan?

Yeah I imagine you would. I haven't had to pay any of mine back since I've been in NZ as when I contacted the SLC I wasn't yet working here and so had no income and payments were postponed for a year but I'm pretty sure it did have to be a UK bank account you pay them from so yes you'd have to pay to transfer the money some how. :(