Repaying from the USA
The United States has one of the highest costs of living in the world according to SLC calculations. Here is how that affects your repayment threshold and monthly bills.
Band G: The Highest Threshold
The USA is almost always classified as Band G. This is the highest possible band, meaning you have the highest earning allowance before you start paying back.
However, salaries in the US (especially in tech, finance, or major cities) are often significantly higher than UK equivalents, so many graduates find themselves repaying substantial amounts.
Gross vs. Net Income
In the UK, student loan repayments are calculated on your gross income. SLC generally applies the same principle abroad.
Watch out for: US payslips often have many pre-tax deductions (Health Insurance, 401k contributions, State Tax, Federal Tax).
SLC typically looks at the "Gross Pay" figure on your W-2 or pay stub, not your "Net Pay" (take-home). This means your repayment is calculated on your total earnings before your health insurance or retirement savings are taken out.
💡Currency Conversion & Fees
Sending money from a US bank to a UK bank via traditional SWIFT transfer can be expensive (often $30-$50 per transaction plus poor exchange rates).
It is highly recommended to use a specialist currency broker (like Wise, Revolut, or Atlantic Money) or the official SLC payment portal (Flywire/Convera) to minimize fees and get a better exchange rate.
Fixed Monthly Repayments
If you do not provide the requested evidence of your income, SLC will apply the Band G Fixed Monthly Repayment.
Because the USA is in the highest band, this default penalty amount is the highest possible fixed repayment. It is almost always better to declare your actual income unless you are a very high earner.