{"id":117668,"date":"2026-02-19T10:30:00","date_gmt":"2026-02-19T10:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=117668"},"modified":"2026-02-19T10:25:25","modified_gmt":"2026-02-19T10:25:25","slug":"student-loan-crisis-deepens-uk-graduates","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/student-loan-crisis-deepens-uk-graduates\/","title":{"rendered":"Student Loan Crisis Deepens: UK Graduates in EU Facing Huge Repayment Hikes"},"content":{"rendered":"\n

Student loan repayments for UK nationals living in European Union countries are set to increase sharply, sparking outrage among graduates. From April, the government is cutting the salary threshold <\/strong>for student loan repayments, meaning many will have to pay more despite no increase in their income.<\/p>\n\n\n\n

The move primarily affects graduates in countries like Germany <\/strong>and Belgium<\/strong>, where the repayment threshold for Plan 2 loans will drop significantly. Graduates have expressed frustration, with some claiming the new rules are unfair, especially given the ongoing student loan crisis in the UK. The shift in thresholds is part of a broader strategy to adjust loan repayments in line with varying living costs across different nations. However, the decision has raised questions about fairness and the sustainability of the student loan system.<\/p>\n\n\n\n

Recalculating Loan Repayments Based on Living Costs<\/h2>\n\n\n\n

For UK graduates living abroad, the amount they must repay on their student loans is typically calculated according to the cost of living in the country where they reside. According to the Guardian<\/em>, this means the repayment threshold is adjusted annually based on local data<\/strong>. While the repayment system in the UK is straightforward (graduates pay 9% of their income above a set threshold) those living overseas have their threshold recalculated each year based on living costs, as determined by the World Bank’s Price Level Index<\/strong>.<\/p>\n\n\n\n

In a significant change for 2026, the threshold for graduates living in Germany and possibly other European countries will be reduced from \u00a328,470 to \u00a323,510<\/strong>. As a result, many graduates in these countries will face higher monthly repayments, even if their salary has not increased. One graduate in Germany reported an increase of \u00a3456 per year in their repayment amount, despite no change in their earnings. This new threshold will also affect graduates in Belgium, with similar rises in repayment amounts being reported by individuals on various online forums.<\/p>\n\n\n\n

The adjustment has caused alarm among those affected, with some graduates questioning the logic behind the reduction in the threshold. Many argue that the cost of living in Germany has not significantly decreased, and some have pointed out that the new threshold is actually lower than what a full-time worker <\/strong>on Germany’s minimum wage would earn, raising concerns about the fairness of the system.<\/p>\n\n\n\n

Government’s Rationale for the Threshold Adjustment<\/h2>\n\n\n\n

According to the UK government, the adjustments to the overseas repayment thresholds are intended to reflect the relative cost of living in each country. The Department for Education (DfE<\/a>) explains that thresholds are based on purchasing power parity (PPP<\/strong>) data, which measures how far people’s money goes in different countries. This system is designed to ensure that graduates repay an amount proportionate to their earnings, adjusted for local economic conditions.<\/p>\n\n\n\n

However, graduates in Germany and Belgium argue that the changes do not align with their actual living expenses. One graduate pointed out that if the government\u2019s data suggested Germany had become cheaper, it might be more logical to raise the UK threshold to account for rising living costs in the UK. Others noted that the reduced thresholds could be a disincentive for UK nationals to move abroad, as it will likely result in them paying more despite lower wages or similar living costs.<\/p>\n\n\n\n

The decision to cut the overseas repayment threshold has also stirred political controversy, with critics accusing the government of further burdening graduates already struggling with high student debt. Consumer advocate Martin Lewis<\/strong>, for example, has warned that such changes could lead to an erosion of trust in the student loan<\/a> system, which many already consider flawed and unfair. The government’s handling of this issue has intensified calls for reform, particularly among the 5.8 <\/strong>million graduates who took out a Plan 2 loan between 2012 and 2023, many of whom now face ballooning debts.<\/p>\n\n\n\n

The impact of the changes is still unfolding, with the Department for Education expected to announce the 2026-27 overseas repayment thresholds in April. However, many graduates are already feeling the effects of the adjustment, which could further exacerbate the mounting dissatisfaction with the student loan system.<\/p>\n","protected":false},"excerpt":{"rendered":"

UK graduates living in the EU are facing a major financial shock. From April, the government is slashing the repayment threshold, leaving many with soaring student loan payments.<\/p>\n","protected":false},"author":10,"featured_media":117670,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-117668","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/117668","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=117668"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/117668\/revisions"}],"predecessor-version":[{"id":117671,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/117668\/revisions\/117671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/117670"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=117668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=117668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=117668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}