Student loan calculation of the repayment threshold for Australia: FOI release

Information requested

• The full methodology used to determine the repayment threshold for Australia, including any formulae applied.
• The specific data inputs used in the calculation, including:
  • Price Level Index (PLI) values;
  • Any data sourced from the World Bank;
  • Exchange rates, income data, or cost-of-living indicators.
• The specific band or category that Australia has been placed into for repayment purposes, and the criteria for that classification.
• Any internal guidance, policy documents, or analytical models used in determining overseas repayment thresholds.
• Any internal communications, briefing papers, or decision records relating specifically to the setting of the Australia repayment threshold for 2026/27.
• Any explanation for changes in the threshold compared to the previous financial year.

Response

1. I enclose a copy of some of the information you requested.

2. The answer to your questions are outlined below. I have highlighted which documents relate to the specific points you have raised.

3. We have redacted personal information under * s.38(1)(b) where appropriate throughout the documents.

The full methodology used to determine the repayment threshold for Australia, including any formulae applied.

The repayment threshold for overseas residents is calculated based on the terms set out in Part III of the Repayment of Student Loans Scotland Regulations 2000 (document 3). As stated in these regulations the fixed instalments and applicable threshold for overseas residents is determined with reference to the most recent price level index for the specific country of residence. Document 1 shows the most recent Scottish Government calculations of the new Fixed Instalment rate and Applicable Threshold for overseas residents that will apply for the 2026/27 financial year.

These updated figures are then provided by the Scottish Government to the Student Loans Company (SLC) (document 2) who take the Price Level Index information from data for the most recent year published by the World Bank to apply the relevant Applicable Threshold to the borrower’s country of residence.

The specific data inputs used in the calculation, including:

• Price Level index (PLI) values;
• Any data sourced from the World Bank;
• Exchange rates, income data, or cost-of-living indicators.

As you can see from Part III of the regulations, the Scottish Government provides general information on the Applicable Threshold for each Band within a range of the Price Level Index. Scottish Government have no involvement in how individual countries are assessed on the Index and therefore do not hold information from the World Bank or information relating to exchange rates, income data or cost-of-living indicators.

The specific band or category that Australia has been placed into for repayment purposes, and the criteria for that classification.

See answer above.

Any internal guidance, policy documents, or analytical models used in determining overseas repayment thresholds.

As above, document 1 shows the most recent Scottish Government calculations of the new Fixed Instalment rate and Applicable Threshold for overseas residents that will apply for the 2026/27 financial year.

Any internal communications, briefing papers, or decision records relating specifically to the setting of the Australia repayment threshold for 2026/27.

As stated above, the Scottish Government does not set the repayment threshold rate for individual countries. The applicable threshold is attributed to a specific range on the Price Level Index with the individual rating for Australia decided on by the World Bank.

Any explanation for changes in the threshold compared to the previous financial year.

The applicable threshold rates applied to the Price Level Index ranges increase annually as per the terms of the regulations. The regulations state that the previous threshold will rise by the percentage increase between the retail prices all items index published by the Office for National Statistics for the two Marches immediately before the previous year of assessment. Document 1 confirms that the thresholds will increase by 3.2% and shows what the previous threshold rate was and what the new rate will be for the 2026/27 financial year.

About FOI

The Scottish Government is committed to publishing all information released in response to Freedom of Information requests. View all FOI responses at https://www.gov.scot/foi-responses.

FOI 202600511872 - Information released - Documents

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