Student Loan Repayment Overseas UK: 2026 EU Threshold Changes

Student loan repayment overseas UK obligations changed in April 2026, and some UK graduates living in the EU may now be repaying more each month without any increase in their earnings. The Student Loans Company (SLC) updated its country-specific repayment thresholds, and for several EU countries, those thresholds dropped significantly.

This means that if you are a UK graduate living in a country like Germany, Belgium, or Slovenia, your monthly deductions may have increased, even if your salary has stayed the same.

This guide explains what changed, which countries are affected, and what steps you can take. For many borrowers, student loan repayment overseas UK is no longer just an admin detail. It can change monthly finances in a real way.

Quick Answer: Student Loan Repayment Overseas UK

• The SLC recalculated overseas repayment thresholds in April 2026 using cost-of-living adjustment data referenced in Student Loans Company guidance.
• For some EU countries, including Germany and Belgium, the Plan 2 threshold dropped from £28,470 to £23,510, a reduction of approximately 17%.
• UK-based graduates saw a small increase in their threshold (from £28,470 to £29,385), while some overseas graduates now face lower thresholds and higher monthly deductions.
• If you live abroad and have not updated your details with the SLC, you may be placed on a fixed monthly repayment that could be higher than what you actually owe.

What Changed in April 2026?

Every year, the Student Loans Company sets country-specific thresholds for student loan repayment overseas. UK borrowers living abroad are assessed based on a threshold adjusted for the cost of living in their country of residence.

These thresholds are calculated using cost-of-living adjustment data referenced in Student Loans Company guidance, which compares the cost of essentials such as housing, food, and transport in each country against the UK. According to official SLC guidance, this adjustment is intended to set a comparable income level at which repayments begin.

How the UK and Overseas Thresholds Diverged

For the 2026-27 tax year, the UK domestic Plan 2 repayment threshold increased slightly from £28,470 to £29,385. However, for several EU countries, the adjusted overseas threshold moved in the opposite direction. This divergence means that some graduates living abroad may now begin repaying at a lower income level than those in the UK.

The SLC publishes updated thresholds each April on GOV.UK.

Which EU Countries Are Affected?

Based on the published 2026-27 overseas earnings thresholds, the following table shows indicative Plan 2 threshold changes for selected EU countries:

These figures are based on the GOV.UK published thresholds for Plan 2 student loans and are subject to annual review. The thresholds for student loan repayment overseas UK borrowers face are recalculated each April, so they can change year to year.

Germany is a notable example. In 2025-26, the German threshold matched the UK domestic level exactly. In 2026-27, it dropped to £23,510, meaning graduates in Germany may now begin repaying at a significantly lower income than those based in the UK.

Broader EU Threshold Bands (2026-27, Plan 2)

For reference, here are the approximate Plan 2 threshold bands across all EU member states:

How Much More Could You Repay?

The repayment rate itself has not changed. Under Plan 2, borrowers repay 9% of income above their applicable threshold. However, a lower threshold means a larger portion of your income falls within the repayment zone.

Example: A UK Graduate in Germany

The following is an illustrative example based on a graduate earning the equivalent of £40,000 per year, showing how the threshold change may affect student loan repayment overseas UK obligations:

In this example, the graduate could see an increase of roughly £38 per month, or approximately £450 per year, with no change in salary. These figures are illustrative and may vary depending on exchange rates and how the SLC assesses your income.

For graduates earning higher salaries, the difference in annual student loan repayment overseas UK amounts could be larger. For instance, a graduate earning £55,000 in Germany could see their annual repayment increase by a similar amount due to the threshold reduction.

Why Overseas Student Loan Repayment Thresholds Change

The SLC uses cost-of-living adjustment data referenced in Student Loans Company guidance to adjust thresholds for each country. The underlying principle, according to official guidance, is that if a country has a lower cost of living than the UK, a borrower there can maintain a comparable standard of living on a lower income. As a result, their student loan repayment overseas UK threshold is set lower.

This adjustment data takes into account factors such as housing costs, food prices, transport, and general consumer spending. Because it is recalculated annually, thresholds can shift noticeably from one year to the next.

A Note on Data Lag

It is worth noting that the cost-of-living data used by the SLC may lag behind real-time economic conditions. If the cost of living in a country has risen faster than the data reflects, the resulting threshold may not fully account for current living expenses. This is a known limitation of the methodology and can affect the accuracy of student loan repayment overseas UK thresholds.

Risks If You Do Not Update Your Details

If you move abroad and do not inform the Student Loans Company, you may be assigned a fixed monthly repayment based on the highest income band for your country. According to published SLC guidance, this fixed amount can be considerably higher than what you would typically owe based on your actual earnings.

For example, in Germany for 2026-27, the fixed monthly repayment is reported as £327.20. That amounts to approximately £3,926 per year, regardless of your actual income.

To avoid this, the SLC requires borrowers to complete an Overseas Income Assessment form each year. This typically involves providing:

• Recent payslips or proof of income
• Employment contracts (translated if necessary)
• Bank statements confirming income receipt

The SLC uses approved exchange rates, set annually in April, to convert your earnings to GBP. Missing the deadline or failing to submit this form does not pause your student loan repayment overseas UK obligations. Arrears may accumulate, and enforcement can become straightforward through HMRC if you later return to the UK.

What UK Graduates Should Do Now

If you are a UK graduate living in the EU and your student loan repayment overseas UK threshold has changed, the following steps may help:

1. Check your updated threshold. Visit the SLC overseas thresholds page on GOV.UK to confirm the threshold for your country of residence.

2. Submit your Overseas Income Assessment on time. This is your only way to ensure repayments are calculated based on your actual income rather than a fixed monthly amount.

3. Confirm which loan plan you are on. If you started university in England between 2012 and 2023, you are typically on Plan 2. If you started from September 2023 onwards, you may be on Plan 5, which has different thresholds. See our Plan 2 student loan guide for a detailed comparison.

4. Consider the exchange rate. The SLC sets exchange rates once a year in April. Currency fluctuations can affect how your local salary translates into GBP, which in turn affects your monthly deductions.

5. Check your write-off date. Plan 2 loans are typically written off 30 years after the April following graduation. If you are early in your career, these threshold changes can compound over time.

If you are considering university and want to understand the funding process first, our guide on how student finance works in the UK covers the basics.

Student Loan Repayment Overseas UK: What To Check Before You Move

If you are planning a move rather than already living abroad, check the repayment rules before you change country.

Key checks before relocation

Before moving, confirm:

• which repayment plan you are on
• what threshold applies in your destination country
• how often you must update your overseas income details
• whether a lower threshold could change your monthly repayments quickly

This is where student loan repayment overseas UK planning matters most. The cost of moving abroad is not just rent and travel. It can also include a repayment system that works differently once your country changes.

Finding the Right Course

If you are exploring your options for UK university study, UniStart can help you compare courses and understand your funding eligibility before you apply. Understanding student loan repayment overseas UK rules before you commit to a course can help you plan ahead.

Explore funded UK courses and understand your student finance options before applying.

Sources

• https://www.gov.uk/repaying-your-student-loan-if-you-move-abroad
• https://www.gov.uk/student-finance
• https://www.gov.uk/government/publications/overseas-earnings-thresholds-for-plan-2-student-loans/overseas-earnings-thresholds-for-plan-2-student-loans-2026-27

This article is based on publicly available information from the Student Loans Company and GOV.UK. Student loan repayment obligations depend on your individual circumstances, loan plan, and country of residence. This content does not constitute financial advice. Always verify your situation directly with the Student Loans Company.

FAQ

Why has my student loan repayment overseas UK amount increased?

If you live in an EU country where the SLC’s overseas threshold has dropped, such as Germany or Belgium, you may now begin repaying at a lower income level. The repayment rate remains 9% of income above the threshold, so a lower threshold means a larger monthly deduction.

How does the SLC calculate overseas student loan repayment thresholds?

The SLC adjusts the UK domestic threshold using cost-of-living adjustment data referenced in its own guidance, which compares living costs in each country against the UK. Countries with lower living costs typically receive a lower threshold. These thresholds are reviewed and updated each April.

Am I required to tell the SLC if I move abroad?

Yes. According to official guidance, you are legally required to inform the SLC when you move overseas and to complete an annual Overseas Income Assessment. If you do not, you may be placed on a fixed monthly student loan repayment overseas UK amount at the highest band for your country.

What happens to my student loan repayment if I move between EU countries?

Your threshold changes to match your new country of residence. You must notify the SLC and submit a new income assessment. The student loan repayment overseas UK rules apply separately to each country based on its own cost-of-living-adjusted threshold.

Do these changes affect Plan 5 student loans?

Yes, overseas thresholds apply to all active loan plans, including Plan 5. However, the threshold amounts differ between plans. Plan 5 has a UK domestic threshold of £25,000, and the overseas equivalents are adjusted using the same cost-of-living methodology.