UK graduates living in some European countries are facing higher student loan repayments later this year, according to reports. The move comes as the government reduces the repayment thresholds for graduates abroad, a change that could affect thousands and worsen an already heated debate over student debt. Graduates in Germany and Belgium, and possibly other countries, have been told that from April their monthly repayments will rise. Many claim the government is using “messed-up logic” to calculate living costs abroad, leaving some to pay hundreds of pounds more each year despite no salary increase. The row follows a previous decision last November to freeze the salary threshold for “plan 2” student loans in the UK for three years. For UK graduates living in Germany, the threshold is set to drop from £28,470 to £23,510 per year starting 6 April. Graduates with plan 2 loans repay 9% of all earnings above their threshold. The overseas thresholds are meant to reflect local living costs and are set annually. However, some graduates say the new threshold implies that the cost of living in Germany has fallen by nearly £5,000 between 2025-26 and 2026-27. The new threshold is now lower than the annual earnings of a full-time worker on Germany’s minimum wage, which is about €28,116 (£24,500). Many see the change as a deliberate squeeze on UK nationals abroad. Online forums report that some monthly repayments will nearly double. It remains unclear exactly which countries are affected or how many graduates will see changes. The Department for Education plans to announce the official 2026-27 overseas thresholds in April. Pressure is growing on Chancellor Rachel Reeves, as around 5.8 million people took out plan 2 loans between 2012 and 2023. Many argue that ballooning student debt has left them financially strained. Some graduates say they were misled by the government when taking out loans, with consumer advocate Martin Lewis calling changes to repayment terms morally questionable. Official data shows about 201,000 English UK nationals living overseas are in repayment, with some graduates from Wales and Scotland also affected. One Sheffield University graduate now working in Germany reported his repayments would rise from £213 to £251 per month, an extra £456 a year, without a salary increase. The Student Loans Company confirmed that the German threshold would drop to £23,510. Graduates have criticized the decision online. One Reddit user with a plan 4 loan noted, “Germany isn’t cheaper to live in, so they should raise the UK threshold, not reduce it.” Another reported monthly repayments rising from £84 to £127. German inflation recently rose to 2.1%, while UK inflation fell to 3% in January. The Student Loans Company says overseas thresholds are based on living costs like food, housing, and transport, using World Bank data. A government spokesperson defended the changes, saying the system protects lower-earning graduates, maintains repayment fairness, and cancels loans at the end of repayment terms. They also highlighted efforts to support higher education access, including reintroducing targeted maintenance grants and promoting apprenticeships. The new rules have sparked concern that UK graduates living abroad could face a heavier financial burden, adding to broader criticism of the student loan system and increasing calls for reform. Many argue that cutting thresholds abroad penalizes those living outside the UK and could discourage graduates from working in Europe.