Overseas Student Loan Repayment Thresholds by Country
Complete guide to UK student loan repayment thresholds for every major destination, sourced directly from GOV.UK's per-plan overseas earnings threshold tables
Key Takeaways
- GOV.UK assigns each country a fixed GBP tier for every loan plan. Lower-tier countries get lower thresholds, meaning you start repaying sooner if your country sits in a lower tier than the UK.
- Ireland's Plan 2 threshold is £29,385, the same as the UK's £29,385 for 2026-27. Ireland sits in the UK-parity tier, not below it.
- Higher-tier countries like Switzerland (£35,262 Plan 2) let you earn more before repayments start than Australia (£29,385 Plan 2), which sits in the UK-parity tier.
- You must complete an annual Overseas Income Assessment (OIA) form. If you miss it by 3 or more months, SLC imposes a fixed monthly repayment based on the maximum rate for your plan.
- Thresholds update every April. The figures below are the confirmed 2026-27 GOV.UK figures, verified 2026-09-06. Check GOV.UK each April for the new tax year's tables.
In this article
When you move abroad with a UK student loan, your repayment threshold changes. The Student Loans Company does not simply apply the UK threshold to your overseas income. Instead, GOV.UK publishes a separate threshold table for each loan plan, grouping every country into a fixed GBP tier. The result can be lower or higher than the UK equivalent, depending entirely on where you live and which plan you are on.
This matters because your repayment obligation is determined by whether your local income (converted to GBP) exceeds your country's threshold for your plan. A graduate in Zurich earning the equivalent of £29,385 would face Plan 2 repayments in Sydney (Australia's Plan 2 threshold), but not yet in Zurich, since Switzerland's Plan 2 threshold is £35,262, the highest tier GOV.UK publishes.
Use this guide to find your country's threshold, understand the assessment process, and link through to detailed country-specific guides for the most popular destinations.
How Overseas Thresholds Work
GOV.UK sets a separate threshold for every country where UK graduates live, for each of the five loan plans. Cross-checking all five published 2026-27 tables shows every country sits in one of six fixed tiers, each a set multiple of that plan's own UK domestic threshold. Ireland sits in the 1.0x (UK-parity) tier; Switzerland sits in the 1.2x tier, the highest published.
GOV.UK multiplies the UK threshold by the destination country's tier to produce the overseas threshold. For Plan 2, Ireland's tier is 1.0x, so its threshold equals the UK's exactly; Switzerland's tier is 1.2x.
The Formula:
Overseas threshold = UK threshold (for that plan) × Country tier
Example (Plan 2, Ireland): £29,385 × 1.0 = £29,385
Example (Plan 2, Switzerland): £29,385 × 1.2 = £35,262
Your overseas income is assessed in your local currency and converted to GBP using GOV.UK's published exchange rate. SLC then compares this GBP-equivalent figure against your plan's threshold for your country.
Important: Two Layers of Currency Risk
- Your income is converted from local currency to GBP at the prevailing rate when assessed
- A weakening pound means more of your foreign income exceeds the threshold
- A strengthening pound means you may fall below the threshold even on the same local salary
- Exchange rates shift constantly — budget a buffer above the threshold to avoid unexpected shortfalls
The repayment rate is identical to the UK — 9% of income above threshold for Plans 1, 2, 4, and 5; 6% for Postgraduate Loans. Only the threshold changes.
Full Threshold Table by Country
The table below shows the confirmed 2026-27 overseas repayment thresholds in GBP for the most common UK graduate destinations, taken directly from GOV.UK's five per-plan tables and verified 2026-09-06.
| Country / Region | Plan 1 | Plan 2 | Plan 4 | Plan 5 | PGL | Guide |
|---|---|---|---|---|---|---|
| Australia | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | Australia guide |
| Canada | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | Canada guide |
| France | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | France guide |
| Germany | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | Germany guide |
| Ireland | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | Ireland guide |
| Italy | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | Italy guide |
| Netherlands | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | Netherlands guide |
| New Zealand | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | New Zealand guide |
| Singapore | £16,140 | £17,631 | £20,277 | £15,000 | £12,600 | Singapore & Hong Kong guide |
| Hong Kong | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | Singapore & Hong Kong guide |
| Spain | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | Spain & Portugal guide |
| Portugal | £16,140 | £17,631 | £20,277 | £15,000 | £12,600 | Spain & Portugal guide |
| Switzerland | £32,280 | £35,262 | £40,554 | £30,000 | £25,200 | Switzerland guide |
| UAE (Dubai / Abu Dhabi) | £21,520 | £23,508 | £27,036 | £20,000 | £16,800 | UAE guide |
| USA | £32,280 | £35,262 | £40,554 | £30,000 | £25,200 | USA guide |
| UK (reference) | £26,900 | £29,385 | £33,795 | £25,000 | £21,000 | Reference |
Plan-by-Plan Comparison
Different loan plans produce very different overseas obligations. If you have multiple loans across different plans, each plan uses its own adjusted threshold independently.
Plan 1 (pre-September 2012)
- UK threshold: £26,900 (2026-27)
- Overseas range: £5,380 — £32,280
- Repayment rate: 9% above threshold
- Write-off: 25 years after first due date
Plan 2 (September 2012 — July 2023)
- UK threshold: £29,385 (2026-27)
- Overseas range: £5,877 — £35,262
- Repayment rate: 9% above threshold
- Write-off: 30 years after first due date
Plan 4 (Scotland)
- UK threshold: £33,795 (2026-27)
- Overseas range: £6,759 — £40,554
- Repayment rate: 9% above threshold
- Write-off: 30 years after first due date
Plan 5 (August 2023 onwards)
- UK threshold: £25,000 (2026-27)
- Overseas range: £5,000 — £30,000
- Repayment rate: 9% above threshold
- Write-off: 40 years after first due date
Postgraduate Loan (PGL)
- UK threshold: £21,000 (2026-27)
- Overseas range: £4,200 — £25,200
- Repayment rate: 6% above threshold (concurrent with undergraduate plan if applicable)
- Write-off: 30 years after first due date
Annual Assessment Process
Once you notify SLC that you're living abroad, you move from automatic PAYE deductions to the annual Overseas Income Assessment (OIA) system. This requires you to take action every year.
Notify SLC Before or Within 1 Month of Moving
Contact SLC online or by phone to confirm you're leaving the UK. Provide your destination country, planned departure date, and initial overseas address. SLC switches you to the overseas assessment system and stops PAYE deduction instructions to your employer.
Receive Your OIA Form Each Year
SLC sends an Overseas Income Assessment form annually — typically by email if registered, or post. The form asks for your income in your local currency for the previous assessment year. You must provide supporting documents (payslips, tax return, or employer letter).
Submit Within the Deadline
You typically have 2 to 3 months to return the completed form. SLC converts your income to GBP, compares it to your country's adjusted threshold, and calculates any repayment due. If you owe nothing (income below threshold), you'll receive a nil assessment for that year.
Make the Assessed Payment
If repayment is due, SLC issues a repayment schedule — usually monthly installments over the following 12 months. You pay directly to SLC by bank transfer from your overseas account or by direct debit from a UK account if you retain one.
Non-Compliance Consequences
Missing your OIA triggers an escalating response from SLC. Understand what happens at each stage so you can act before consequences compound.
What Happens If You Miss Your OIA
SLC sends a reminder by email and post. No penalty yet. Submit immediately to avoid escalation.
Second reminder issued. SLC may call you. Still no fixed repayment at this stage, but it is imminent.
Fixed repayment applied. SLC imposes a set monthly amount — calculated as if you earn at the top of the repayment band for your plan. This is typically £300–£700 per month and runs until you provide your actual income evidence.
Account referred to a debt collection agency. Legal proceedings possible in some cases. UK credit file impact if you maintain UK banking relationships.
If SLC imposes a fixed repayment and you then provide your actual income evidence showing a lower liability, SLC will retrospectively adjust the amount — but you may need to reclaim overpayments, which takes time.
Payment Methods Abroad
Once SLC calculates your overseas repayment, you need to transfer the funds. Several options are available depending on whether you retain a UK bank account.
UK Bank Account (Retained)
- Set up direct debit with SLC — simplest option
- No currency conversion fees on the payment itself
- You handle EUR/USD to GBP conversion separately when funding the account
- Use Wise or Revolut to transfer overseas salary to UK account cheaply
International Bank Transfer
- Possible via SWIFT/SEPA to SLC's designated account
- SEPA transfers within eurozone are low cost
- SWIFT transfers from non-EU countries carry fees of £10–£30
- Allow 3–5 working days for processing
Fintech Transfer Services
- Wise, Revolut, or Currencies Direct for mid-market rates
- Significantly cheaper than high-street bank wire fees
- Can schedule recurring transfers to align with SLC's billing cycle
- Keep receipts as evidence of payment dates and amounts
Overpaying Voluntarily
- You can pay more than the assessed amount at any time
- Voluntary overpayments are not refundable once made
- Consider whether write-off date makes overpayment worthwhile
- See our currency risk planning guide before committing large sums
Country-Specific Guides
Each destination has its own tax system, currency volatility profile, income documentation requirements, and practical compliance challenges. Use the guides below for destination-specific detail.
Australia
High salaries, AUD/GBP volatility, Working Holiday visa considerations, and HECS-HELP interaction.
Read guide →Ireland
UK-parity threshold, not discounted. CTA freedom of movement. Cross-border NI/ROI worker scenarios.
Read guide →France
French tax system, EUR/GBP post-Brexit volatility, attestation de revenu documentation.
Read guide →Germany
EU residence rights, German Einkommensteuer interaction, and documentation for SLC.
Read guide →Italy
IRPEF tax system, regional cost-of-living variation from Milan to Palermo, UK expat communities.
Read guide →Netherlands
30% ruling for expats, Dutch income tax, and Amsterdam vs regional salary benchmarks.
Read guide →New Zealand
NZD/GBP volatility, NZ tax year alignment, and practical compliance from Christchurch to Auckland.
Read guide →Singapore & Hong Kong
Low-tax jurisdictions, high salaries, and how SGD/HKD exchange rates affect your threshold.
Read guide →Spain & Portugal
Popular lifestyle destinations with lower adjusted thresholds and NHR regime considerations.
Read guide →Switzerland
Highest adjusted threshold in Europe. Swiss income tax system and cantonal variations.
Read guide →UAE (Dubai)
Tax-free salaries, AED peg stability, and practical compliance for Finance and tech professionals.
Read guide →USA
US federal and state tax interaction, FBAR obligations, and USD/GBP currency management.
Read guide →Student Loan Calculator UK Editorial Team
Editorial Team
This page is maintained by the Student Loan Calculator UK editorial team, checked against GOV.UK and Student Loans Company guidance. Read more about our editorial approach.