Is Plan 2 repaid at the same rate when I live overseas?

Plan 2 overseas repayments are calculated at 9% of income above the relevant overseas threshold. The rate is familiar, but the threshold is country-specific rather than the normal UK payroll threshold.

Which income figure should I use for Plan 2?

Use gross annual income before local tax, social insurance, pension deductions, or other payroll deductions. If your pay includes regular bonuses or allowances, include them in the annual figure.

Can I use the UK threshold for Plan 2 while abroad?

No. Overseas repayments use the Student Loans Company overseas threshold table for your country of residence and tax year, so the UK payroll threshold is not the right comparison point.

What if I also have a Postgraduate Loan?

A Postgraduate Loan is calculated separately at its own rate and threshold. If you have one, add that estimate to your undergraduate repayment estimate.

Plan 2 Overseas Student Loan Repayment

Check how Plan 2 student loan repayments are calculated for UK graduates living abroad, with overseas thresholds, exchange rates, and monthly repayment examples.

What counts for Plan 2 overseas repayments?

Plan 2 repayments overseas follow the same 9% rate used in the UK, but the earnings threshold varies by country and tax year.

The calculator supports the current published overseas threshold tables for 2026-27. Enter your country of residence and annual gross salary in local currency to estimate your monthly repayment.

Who usually uses Plan 2?

Plan 2 usually applies to English and Welsh undergraduate loans for courses started from 2012 until Plan 5 began. Overseas borrowers still use country-specific thresholds rather than the UK payroll threshold.

Repayment rate

Plan 2 repayments are usually 9% of income above the overseas threshold.

Overseas calculation notes

Plan 2 overseas tables include lower and upper threshold figures. This calculator uses the lower overseas threshold to estimate the repayment amount.
The repayment amount is 9% of converted income above the lower threshold. Interest treatment is separate from the monthly repayment estimate.

Before calculating

Use Plan 2 if that is the plan shown on your SLC account.
Use gross annual salary and the country where you are resident for repayment purposes.
If you also have a Postgraduate Loan, calculate it as an additional repayment.

Source note: repayment rates and overseas threshold handling are based on public GOV.UK and Student Loans Company guidance for supported tax years. This page was last reviewed on 8 May 2026.

Frequently asked questions

Is Plan 2 repaid at the same rate when I live overseas?: Plan 2 overseas repayments are calculated at 9% of income above the relevant overseas threshold. The rate is familiar, but the threshold is country-specific rather than the normal UK payroll threshold.
Which income figure should I use for Plan 2?: Use gross annual income before local tax, social insurance, pension deductions, or other payroll deductions. If your pay includes regular bonuses or allowances, include them in the annual figure.
Can I use the UK threshold for Plan 2 while abroad?: No. Overseas repayments use the Student Loans Company overseas threshold table for your country of residence and tax year, so the UK payroll threshold is not the right comparison point.
What if I also have a Postgraduate Loan?: A Postgraduate Loan is calculated separately at its own rate and threshold. If you have one, add that estimate to your undergraduate repayment estimate.

Important caveats

This tool is an estimate. Official repayment notices can use different exchange rates, updated thresholds, or account-specific details. Always verify final amounts with the Student Loans Company.

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