Can Living Outside the U.S. Still Pause Loan Payments?

Student Loans
1

Hallo…
, I need some help understanding student loan payments for Americans living abroad. My wife is American and now lives with me in France. She’s on the SAVE plan for her federal loans.
From what I know, there’s an income-based repayment option, and since she’s living overseas, her income (right now she’s not working, but she might start soon) is excluded from U.S. taxes up to $120K under the foreign income tax exclusion. I’ve read that if you use this exclusion, it shows $0 income on your IRS return, so her loan payments would stay at $0.
Is that still how it works? If she starts working in France, would her payments still stay at $0 because of the exclusion? Just want to make sure we’ve got this right.

In anticipation…

2

These programs have the ability :thinking: to temporarily suspend or lower your loan payments in specific situations, such as joblessness, financial difficulty, or active military duty.

3

These options modify your monthly payment in accordance with your family size and income. Should your income decline while residing overseas, you can be eligible for a reduced amount.

4

It’s crucial to remember that interest could still accrue during a deferment or forbearance :heart_eyes_cat:, and that when you start making payments again, you’ll still repay the entire balance of the loan plus interest.

5

It’s a good idea to speak with your loan servicer if you’re thinking of moving overseas so you can weigh your alternatives and decide which course of action is best for you.

1 Like
6

They can provide :saluting_face: you with detailed information on available programs and eligibility requirements.