US Student loans and ILR/Citizenship applications

Hi everyone, I'm new to the forums and glad I've found this place.

I will soon be hitting the 10 year mark of living in the UK and will be applying for Indefinite Leave to Remain under the Long Residence rules. I plan on applying for citizenship as soon as I am eligible afterwards.

My only worry (everything else is straightforward) is that I have a LOT (I mean a LOT) of federal student loan debt from the US. I got my graduate degrees in the UK and US citizens can use US loans to pay for degrees in foreign countries.
I have not defaulted on any loans, and I am under an income-based repayment plan. But because my US income is $0 (all my income is in the UK), my monthly repayment on my loans is currently $0. Therefore my loans are in good standing, but not being paid off. Though this still counts towards a 25 year forgiveness plan. I have one loan that does not qualify for income-based repayment and I am paying it off each month with money from my US bank account.

My question is: does the UK care about such loans for an ILR or citizenship application? Would they even know or care to know (i.e., would I be required to disclose this on these applications)? Would I need to worry or demonstrate/explain the repayment situation?

Thank you for reading and any advice you can give!

Hi everyone, I'm new to the forums and glad I've found this place.

I will soon be hitting the 10 year mark of living in the UK and will be applying for Indefinite Leave to Remain under the Long Residence rules. I plan on applying for citizenship as soon as I am eligible afterwards.

My only worry (everything else is straightforward) is that I have a LOT (I mean a LOT) of federal student loan debt from the US. I got my graduate degrees in the UK and US citizens can use US loans to pay for degrees in foreign countries.
I have not defaulted on any loans, and I am under an income-based repayment plan. But because my US income is $0 (all my income is in the UK), my monthly repayment on my loans is currently $0. Therefore my loans are in good standing, but not being paid off. Though this still counts towards a 25 year forgiveness plan. I have one loan that does not qualify for income-based repayment and I am paying it off each month with money from my US bank account.

My question is: does the UK care about such loans for an ILR or citizenship application? Would they even know or care to know (i.e., would I be required to disclose this on these applications)? Would I need to worry or demonstrate/explain the repayment situation?

Thank you for reading and any advice you can give!

Welcome to the forum. 

I would not have thought it's relevant in any way for SET(LR) it certainly wouldn't be for SET(M). so I probably wouldn't mention it at all at that stage.
But because they are so big on the good character requirement for citizenship, I would explain it for that application.  As everything is above board though, it won't have a detrimental effect on the result. The key is to be open and honest upfront.

Hopefully this isn't pertinent in your case but are you aware that the rules changed recently so periods on a visitors visa or short term study visa can no longer be counted?

Welcome to the forum. 

I would not have thought it's relevant in any way for SET(LR) it certainly wouldn't be for SET(M). so I probably wouldn't mention it at all at that stage.
But because they are so big on the good character requirement for citizenship, I would explain it for that application.  As everything is above board though, it won't have a detrimental effect on the result. The key is to be open and honest upfront.

Hopefully this isn't pertinent in your case but are you aware that the rules changed recently so periods on a visitors visa or short term study visa can no longer be counted?

Well, this is an interesting question. I never would have thought it would have come up at all. Certainly did not for ILR on the 5 year spousal route, which I thought also has a good character thing attached to it. Would it not be an issue to leave it out for ILR but put it on the citizenship application? Could that be construed as trying to hide something? I've personally got loads of American student loans, but I've always kept paying them. Never thought once to talk about them on applications, or saw a place where you could.

Well, this is an interesting question. I never would have thought it would have come up at all. Certainly did not for ILR on the 5 year spousal route, which I thought also has a good character thing attached to it. Would it not be an issue to leave it out for ILR but put it on the citizenship application? Could that be construed as trying to hide something? I've personally got loads of American student loans, but I've always kept paying them. Never thought once to talk about them on applications, or saw a place where you could.

No, not an issue. For example, parking tickets are not required to be declared for ILR but are for citizenship. Different rules.

No, not an issue. For example, parking tickets are not required to be declared for ILR but are for citizenship. Different rules.

Really??? That's surprising. I just assumed that the good character test was the same for both. Do you happen to know the best place to look for guidance? (I'll check the thread someone recently started for it.) Or do they specify things in the application questions themselves? Example, they ask about things in regards to unspent convictions or what not and I always disclose my American speeding tickets from my youth.

I think I found it.
https://www.gov.uk/government/publications/good-character-nationality-policy-guidance/good-character-requirement-accessible-version
Although for both mine and Historian98's peace of mine, do we know of American student loans ever presenting an issue? Just curious cause of this line:

"financial soundness – if their financial affairs have not been in appropriate order - for example, they have failed to pay taxes for which they were liable or have accrued significant debt"

Sadly, going to uni in America automatically means that you have a ton of student debt.    But it just says "accrued," not made mention of whether they were paying it off - which you'd think would show that you are a responsible person who pays what they owe.

I think I found it.
https://www.gov.uk/government/publications/good-character-nationality-policy-guidance/good-character-requirement-accessible-version
Although for both mine and Historian98's peace of mine, do we know of American student loans ever presenting an issue? Just curious cause of this line:

"financial soundness – if their financial affairs have not been in appropriate order - for example, they have failed to pay taxes for which they were liable or have accrued significant debt"

Sadly, going to uni in America automatically means that you have a ton of student debt.    But it just says "accrued," not made mention of whether they were paying it off - which you'd think would show that you are a responsible person who pays what they owe.

No, having a US student loan is not an issue. It's treated similarly to having a mortgage, which is also not an issue.

What could cause a refusal is deliberately racking up a ton of excessive debt that you have no intention of paying off (i.e. taking out bank loans in order to buy something you really can't afford, or maxing out several credit cards via reckless spending).

From the page you linked above:

Debt
An application will not normally be refused simply because the person is in debt, especially if loan repayments have been made as agreed or if acceptable efforts are being made to pay off accumulated debts.

However, where a person deliberately and recklessly builds up debts and there is no evidence of a serious intention to pay them off, the application will normally be refused.