Repayment deadline for overseas student loan borrowers
Repayment deadline reminder for overseas student loan borrowers
Inland Revenue is reminding overseas-based student loan borrowers, especially those who have just come off their repayment holiday, that they need to make repayments by the end of this month.
Maurice Lawlor, Inland Revenue’s student loans business owner, said that reminder emails have been sent to nearly 16,000 borrowers worldwide. This is in addition to the regular statements borrowers would have received which show their latest loan balance.
“The majority of overseas-based student loan borrowers are not on a repayment holiday, and are required to make payments every year, based on the size of their loan. They can either pay in two equal instalments in March and September or spread payments throughout the year.
“Compound interest is charged on a loan when a borrower is overseas-based, even when they are on a repayment holiday, with penalties being charged on any outstanding obligation. So borrower’s need to make sure that their balance does not quickly build up if they are not making make regular repayments.”
Mr Lawlor said that Inland Revenue has a list of international money transfer companies on their website that do not charge a fee for student loan payments.
“It’s easy and fee-free to make repayments from most countries overseas through these companies. They can also set up recurring payments to make it easier to meet repayment obligations through smaller, regular payments.
“Alternatively, borrowers can also pay through the Inland Revenue website using a debit/credit card.
“However they pay, they need to meet their full repayment obligation within the tax year ending 31 March,” Mr Lawlor said. “Our emails not only encourage people to make their repayments but also help ensure they pay the correct amount.
“They also send the message that while these borrowers may have gone away, their loan hasn’t – and they have an obligation to pay it back.”