IfOverseas youthresholds liveare abroadbased oron workliving forcosts ain foreigneach employer,individual country. This is why the minimumrepayment amountthreshold youis mustnot earnalways maythe besame differentas fromit is for those in the UK.
EarningsThe thresholdsPrice forLevel foreignIndex countries(PLI) areis setused to measure the differences in the general price levels for each year.country, Theyfor describeexample, the minimumcosts amountof youfood, musthousing, earnand intransport, ato countryallow beforea you’llcomparable startthreshold to repay.be set.
The repayment thresholds takefor accounteach ofcountry differencesare inset livingonce costsa year on 6 April. Changes to this can affect how much you need to repay even if your income has remained the same.
The PLI information is taken from the UK.most Therecent year published by the World Bank.
How we work out the exchange ratesrate used each year
The exchange rate we use to calculateconvert your salary to GBP is based on the thresholdsaverage currency exchange rates for the most recent calendar year published by HMRC.
These are alsoreviewed provided.every year on 6 April. They won’t show any month-to-month rate changes.
How we calculate your gross annual salary using your payslips
ForIf eachyou’re country,paid theremonthly, iswe’ll ause fixedyour income from your last three months’ payslips to calculate your average monthly repaymentsalary. amount.Then Thiswe ismultiply this by 12 months to total your gross annual salary.
Example:
| Month 1 income |
£2,500 |
| Month 2 income |
£3,000 |
| Month 3 income |
£2,750 |
£2,500 + £3,000 + £2,750 = £8,250
£8,250 / 3 = £2,750 average monthly salary
£2,750 x 12 months = £33,000 gross annual salary
If you’re paid weekly, we’ll use the amountaverage youincome couldfrom payyour eachlast month12 ifweeks’ youpayslips doand notmultiply letthis Studentby Loans52 Companyweeks knowto aboutwork out your income.gross annual salary.
OverseasIf earningsyou’re thresholdspaid forbi-weekly studentor loanfortnightly, repaymentwe’ll areuse basedthe on:average income from your last 6 weeks’ payslips and multiply this by 24 weeks (for bi-weekly pay) or 26 weeks (for fortnightly pay) to work out your gross annual salary.
Bonuses and overtime
Any bonuses, overtime, commission and allowances that are:
one off payments will be added to your annual income after it’s been calculated- regularly received will be included in the calculation of your annual income.
Superannuation
Superannuation payments won’t be included when we work out your monthly repayment amount.
If you’re paid more than 12 times a year
In some countries employees are paid more than 12 times a year.
Where this happens, we’ll use the income from your last three months’ payslips to work out your average monthly salary. This will then be multiplied by the number of pay periods in a full year to calculate your gross annual UKsalary.
How earningswe calculate your repayment schedule
We use the “overseas repayment threshold duringfor Postgraduate Loans” table to calculate your repayment amount, by using the periodfollowing steps:
WorldWe’ll Bankconvert data,your whichgross measuresannual salary to GBP by using the differencesexchange inrate generalfor pricethe levelscountry betweenyou’re countries
living in.- Then we’ll take away the “repayment threshold (GBP)” for that country from your annual salary.
You’ll repay 6% of the amount left over. This is split over 12 months to give you your monthly repayment amount.
For example:
You’re on the exchangePostgraduate rates,Loan calculatedplan, asliving in Spain and have an averageincome of €33,000 a year.
Your salary is converted to GBP using the exchange rate for theSpain previouswhich UKis calendar0.869943:
€33,000 year.x 0.869943 = £28,708.11.
The repayment threshold for Spain is £16,800.
This is taken away from your annual earnings:
£28,708.11 - £16,800 = £11,908.11
You repay 6% of this figure (£11,908.11 x 0.06) which is £714.48.
This is divided into 12 monthly payments of £59.54 (rounded down to £59).
Keep your employment details up to date if you’re going overseas
If you’re overseas for more than three months, you need to give us information on how you’re supporting yourself financially. You can update your employment details online, even to let us know that you’re unemployed. The online service will tell you exactly what information we need from you.
This allows us to determine if you’re due to start making repayments. If you are due to start repaying, we’ll give you an accurate repayment plan based on your earnings or defer your repayments for 12 months if you’re earning under the threshold.
If you don’t update us, then the fixed monthly repayment shown for the country you’re living in will be expected every month.
If repayments aren’t made then an overdue balance will build up on your account