Life's journey often leads us far from where we started, with new adventures awaiting us in foreign lands. If you are navigating the exhilarating experience of living abroad while shouldering the responsibility of repaying your student loan back in your home country, you are not alone. This guide is your compass in a complex and sometimes daunting journey. It's time to decode the intricacies of repaying your home country's student loan from afar, transforming a financial commitment into a well-executed international endeavor.

As you explore new horizons, embrace different cultures, and build a life in a foreign country, your student loan remains a connection to your past, a tether to the dreams that brought you here. While distance separates you from your home, it should not create a chasm of uncertainty when it comes to your financial obligations.

In this blog, we will embark on a journey that transcends borders and time zones, guiding you through the process of managing and repaying your student loan while living abroad. From understanding the logistical nuances to mastering the art of financial diplomacy, this guide empowers you to seize control of your financial future. It's an opportunity to demonstrate your adaptability and resilience as you maintain your commitment to both your education and your international adventure. Together, we will bridge the divide and make the world your financial oyster.
What Will Happen To Your Student Loan When You Move Abroad?
There is a very common myth about student loans that you can avoid paying your student loan if you move abroad. But that’s not the case. You cannot avoid paying your loan debt until it is being paid, forgiven, or handled in a different way.

No matter where you are living, the government will trace your location and work accordingly. If you are thinking about when will student loan payments resume, then you must know that there is no grace period for resuming the payment. You can start paying your debt amount immediately after shifting abroad. It is solely dependable on you and your circumstances.

In case you are living in a different country for more than three months, then you will have to contact your student loan provider to sort and discuss the student loan repayments. However, before moving abroad, you can set up your phone and bank in an auto-pay setting. By doing this, you will not have to take any stress to pay your loan debt because the amount will automatically get deducted from your salaried account.

If you are planning to ignore your federal loan, then, unfortunately, you won’t succeed. The United States government has its own way to the debt that you own. For instance, if you are working in a US-based company, then the government will deduct the debt amount from your wage or will confiscate/ seize your Social Security benefits and all future tax refunds.

Let’s Check Out More Details Regarding This Context Below;
Ways to Manage Student Loan Debt From Abroad
Moving abroad alone requires many procedures and can create a lot of confusion and fuss. And on top of that, if you have a student loan to pay, things can get very chaotic. But not anymore. In the context given below, you will get various tips and ways to manage your student loan debt from any country. However, the best approachable way to manage things will solely depend on your circumstances, policies, and other things related to you, such as the type of loans you have, your income, and your budget.

There are some major and common ways through which you can manage your student loan debt. The options to consider are;

• Choose the Correct Bank: Make sure the bank you are selecting to pay off your student loan debt offers international bank transfers and other facilities.
• Update your contact information: When you move abroad, it is very obvious that you will get new contact information. It is very important to keep your student loan provider up-to-date with all your information. Your contact information also contains your personal information, such as your contact number (current or international), your new international home address, and bank details, if changed.
• Set Up Automatic Payment: After shifting to a new place, there are chances that you can get busy with your new life and workloads. Similarly, there is a chance that you may forget to make the repayment of your loan. If you do so, then you might have to pay an additional fine or have to face consequences. To avoid these kinds of situations, you can link your bank account with the loan provider’s site. This is the easiest way to ensure that you never miss a payment, even if you are living in a different time zone. All your monthly payments will be deducted on their own.
• Use a currency transfer service: If you need to send money from your foreign bank account to your US bank account to make your loan payments, you can use a currency transfer service like Wise or OFX. These services typically offer lower fees and better exchange rates than banks.
• Consider forbearance or deferment: If you're having trouble making your loan payments, you may be eligible for forbearance or deferment. Forbearance allows you to temporarily pause your loan payments, while deferment allows you to postpone them until a later date. You can contact your loan servicer to learn more about these options.
• Refinance your loans: If you have good credit, you may be able to refinance your student loans at a lower interest rate. This can save you money on your monthly payments and overall interest costs. There are a number of lenders that offer student loan refinancing, so it's important to compare rates and terms before you choose one.

Just take a quick look at some additional tips that will help you manage the debt.

• Always try to stay organized. Keep track of your loan balances, interest rates, and due dates in a spreadsheet or budgeting app. This will help you stay on top of your payments and avoid any late fees.
• Create your monthly budget. Doing so will help you track your income and expenses so that you can make sure you have enough money to make your loan payments each month.
• Live below your means. This means spending less money than you earn. The more money you can save, the more money you can put towards your loan payments.
• Look for ways to earn extra money. If you need help making your loan payments, consider getting a part-time job or starting a side hustle. There are several ways to earn extra money online and offline.
Ways to Reduce the Student Loan Payment While Living Abroad
Student loan debt is indeed a burden, and if you have moved abroad, then this burden can convert into a huge mess. So, in a situation where you start thinking that your loan is pushing you very hard over the cliff and you want to get some relief from it, then you can follow any of the following steps given below;

Apply for Student Loan Forgiveness
Enroll yourself in a Student loan forgiveness program. You may find various programs to choose the best for you. One of the most popular and trusted forgiveness programs is Public Service Loan Forgiveness (PSLF). This program forgives your remaining debt amount balance if you make 120 on-time payments and work for a qualified employer.

However, your loan forgiveness program can be on halt if you shift to another country. But your loan can be forgiven if you work for the same organization. For instance, if you are a military member and transferred to a different country for work but still working for the same organization, then you can apply to PSLF.
Switch to An Income-Driven Repayment Plan
In case you are unable to pay your monthly payment, then you can apply for the income-driven repayment (IDR) plan. This plan will reduce the monthly payment amount depending on your income and your family size. Along with that, you may get debt forgiveness after 20 to 25 years. But during all this time, you must have to maintain a good repayment record. No delays on repayment.
Consider Student Loan Deferment or Forbearance
You may be eligible for a delay or forbearance when you relocate overseas under certain conditions, such as a large decrease in income. Both choices allow you to put off making payments on your federal student loans while you acclimate.

The management of interest is the primary distinction between the two:

• Deferment: Interest accrues on federal loans that are not subsidized but are deferred on loans that are.
• Forbearance: For all federal loans, interest accrues and is capitalized.
Refinance or Consolidate Your Student Loans
Refinance or consolidate your student loans to reduce the repayment amount. If you do this before moving abroad, then you will not have to worry about the repayment anymore.

• Private student loan refinances: Your different loans are combined into one single loan through refinancing, ideally with a lower interest rate. If you want more flexibility, you can choose a longer payback period, but you will pay more interest over time. Federal loans can be refinanced, but it is advisable to avoid doing so as you would lose the unique government perks and safeguards that only apply to federal loans.
• Federal student loan consolidation: Your new interest rate will be the weighted average of all of your combined federal loans, rounded to the nearest eighth of a percent. Consolidating your federal loans won't cut your interest rate, but it can lower your payment by lengthening the payback period.
Consequences of Not Repaying Your Student Loan When Abroad
If you are planning to trick your student loan provider by shifting abroad and not paying the repayment debt, then you must check the consequences that you may have to face.

• Damaged Credit Score: This will make it difficult to obtain loans or credit cards in the future, and you may have to pay higher interest rates on any loans you qualify for.
• May need to Pay Extra Charges/Fine: Your loan servicer may charge you late fees and interest. This can make your loan more expensive in the long run.
• May Get Less Salary: Your loan servicer may garnish your wages. This means that they can take money directly from your paycheck to repay your loan.
• Get Sue for Not Paying Student Loan Repayment: Your loan servicer may sue you. If you are sued, you may have to pay court costs and other fees. Sometimes, you may even be ordered to repay the entire loan balance immediately.