Managing Student Loans While Living in Netherlands

My partner has $45,000 in federal student loans. When we moved to the Netherlands, we had no idea what would happen.

Turns out, your loans don't care that you moved abroad. Payments continue. But there are strategies to manage them.

The Short Answer

Do you still pay? Yes
Can you use income-driven repayment? Yes
Can you get forbearance? Maybe, but interest still accrues

Our Situation

Partner's loans: $45,000 federal loans Before moving: $280/month on REPAYE After moving: Continued payments, recertified income annually

Income-Driven Repayment from Abroad

If you have federal loans, you can use income-driven repayment (IDR).

How it works:

Recertify income annually
Submit tax return
Payment adjusts based on income

The trick: If you use FEIE (Foreign Earned Income Exclusion), your US AGI might be $0.

What happened to us:

Year 1: Submitted tax return with $0 AGI. Loan servicer accepted it. Payment: $0/month.
Year 2: Loan servicer asked for bank statements. Calculated income from deposits. Payment: $180/month.

We pay $300/month voluntarily anyway.

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Recertification

You must recertify income annually. If you miss the deadline, payment reverts to standard repayment (much higher).

Process: Complete online at studentaid.gov, upload tax return or alternative documentation.

Set reminders. Don't miss the deadline.

Paying from Netherlands

What we do:

Auto-pay from Schwab checking account
Never miss a payment

If you need to transfer funds:

Use Wise to transfer euros to dollars
Transfer to US bank
~$3 fee on $300 payment

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Our Strategy

Income-driven repayment (REPAYE)
Paying $300/month (more than minimum)
Plan to pay off in 10-15 years
Not counting on forgiveness

Why: Interest is 5.5%. Want to pay off, not drag out 20 years.

What About Forgiveness?

If loans are forgiven after 20-25 years: Forgiven amount is taxable income ("tax bomb").

Exception: Public Service Loan Forgiveness (PSLF) is tax-free, but requires qualifying employer (government or non-profit). Self-employed DAFT business doesn't qualify.

Book a 1-Hour Consultation$299

Impact on Credit

On-time payments build positive history
Missed payments hurt score significantly
Auto-pay protects you from forgetting

The Bottom Line

Your student loans don't stop because you moved abroad.

What to do:

Set up auto-pay from US bank
Use income-driven repayment if needed
Recertify on time (set reminders)
Pay what you can afford

Our strategy: $300/month, auto-pay from Schwab, recertify annually.

For more financial planning, see our complete moving to Netherlands guide.

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We're not financial advisors. Contact your loan servicer for your specific situation.