UK graduates living in Germany and Belgium will face a big increase in their student loan repayments starting April 6, 2026. The UK government is reducing the repayment threshold for plan 2 student loans from £28,470 to £23,510 a year. Those who earn above this amount must pay 9% of their income over the threshold toward their loans. The threshold cut means many graduates in these countries will pay hundreds of pounds more annually, even if their salaries remain the same. One graduate in Germany will see his monthly loan repayment rise from £213 to £251, an extra £456 a year. Critics argue the UK government wrongly assumes the cost of living in Germany has fallen by nearly £5,000. Some say this is a disincentive for UK nationals to work in Europe. On social forums, graduates report their repayments almost doubling. The Department for Education has not confirmed how many people this affects and will announce full details in April. Rachel Reeves, the Labour shadow chancellor, faces growing pressure over the student debt issue. Around 5.8 million people took out plan 2 loans between 2012 and 2023. Many say they are struggling with huge debts. Consumer champion Martin Lewis has called changing loan terms "not a moral thing" to do. Official data shows 201,000 English UK nationals living abroad owe student loans, with some Welsh and Scottish graduates also affected. The Student Loans Company says overseas thresholds are based on living costs like food and housing, using World Bank data. The government said the loan system protects lower earners and cancels interest after loan terms. They added they support education through targeted grants and apprenticeships. German inflation rose to 2.1% recently, while UK inflation fell to 3% in January.