Author Topic: Who is paying their student loans and credit card debts from here? (Read 2092 times)

weigookin74 · « **on:** April 15, 2015, 08:24:30 PM »

I ask this question because I have met a lot who get over here and then just quit paying. They just hide out over here.

As I understand it, many Commonwealth countries except for Canada seem to have a system of only paying as a percentage of your paycheck when you're in country. But you don't have to pay otherwise if you stay abroad. It seems all South Africans I meet have no debts. Not sure if the government there gives free University or not. In America, there are many different kinds of loans and you can't default or go bankrupt on most of them. (One American guy I know isn't paying. He's just saving money here and says he will settle with them down the road to wipe the debt or write it off.) In Canada, the government will hunt you down and even haul you to court and garnish your wages to get you to pay. But like all debt in Canada, if no payment has been made for 6 years and there's no success in collecting, it get's written off. So, if you're here for 8 years or so, you can go home with a clean slate. Albeit, you have no credit rating and will have to have a lot of cash saved up to start a new life back home.

I have been paying on mine for years. Some credit I let get run up while over here though. Had of I have known it would have taken this long, I may have reconsidered. Anyways, just curious what most folks are doing.

tausha12 · « **Reply #1 on:** April 15, 2015, 08:55:01 PM »

I have been to Korea two separate times. I've paid off credit cards twice. It's not a problem for me. I can pay as much as I want and still live how I want in Korea. I still owe on my student loan but right now it is in deferment. After I reached my take home savings amount I will start paying on the student loan. There is no way I would stop paying on my debt and hide out over here. Korea is not that great!

Morfee · « **Reply #2 on:** April 15, 2015, 09:15:44 PM »

I have student loans back home (UK). They are government loans (as all UK student loans are). I pay back a small amount as I don't earn much above the UK threshold here. I did 5 years of University in total, and have $30,000US in 'debt'. I didn't get any support from my parents really, so that was rent, living costs and tuition fees. I worked during the summers and in a bit here and there in the rest of the year as well sometimes. If I was working in the UK, ever 1$ over $30,000 per year that I earn would be 'taxed' at an extra 10% or so to pay back the loan. People graduating now are worse off than my debt.
I know a lot of people don't pay at all because they can't track you abroad really and they don't chase you (and student loans don't do anything to your credit rating). Interest will obviously compound if you don't pay, but I think it's 0.5% PA at the moment, so pretty negligible.

Seems like the 'broke, unemployed & dirty hippie' Europeans have it better than you, no?

weigookin74 · « **Reply #3 on:** April 15, 2015, 11:07:22 PM »

Quote from: Morfee on April 15, 2015, 09:15:44 PM

I have student loans back home (UK). They are government loans (as all UK student loans are). I pay back a small amount as I don't earn much above the UK threshold here. I did 5 years of University in total, and have $30,000US in 'debt'. I didn't get any support from my parents really, so that was rent, living costs and tuition fees. I worked during the summers and in a bit here and there in the rest of the year as well sometimes. If I was working in the UK, ever 1$ over $30,000 per year that I earn would be 'taxed' at an extra 10% or so to pay back the loan. People graduating now are worse off than my debt.
I know a lot of people don't pay at all because they can't track you abroad really and they don't chase you (and student loans don't do anything to your credit rating). Interest will obviously compound if you don't pay, but I think it's 0.5% PA at the moment, so pretty negligible.

Seems like the 'broke, unemployed & dirty hippie' Europeans have it better than you, no?

Well, actually, I never considered Britain, except geographically speaking, a part of Europe as most Brits have always viewed themselves apart from the "Continent". They have always been more capitalist than most other western or southern European countries.

weigookin74 · « **Reply #4 on:** April 15, 2015, 11:14:14 PM »

Quote from: Morfee on April 15, 2015, 09:15:44 PM

I have student loans back home (UK). They are government loans (as all UK student loans are). I pay back a small amount as I don't earn much above the UK threshold here. I did 5 years of University in total, and have $30,000US in 'debt'. I didn't get any support from my parents really, so that was rent, living costs and tuition fees. I worked during the summers and in a bit here and there in the rest of the year as well sometimes. If I was working in the UK, ever 1$ over $30,000 per year that I earn would be 'taxed' at an extra 10% or so to pay back the loan. People graduating now are worse off than my debt.
I know a lot of people don't pay at all because they can't track you abroad really and they don't chase you (and student loans don't do anything to your credit rating). Interest will obviously compound if you don't pay, but I think it's 0.5% PA at the moment, so pretty negligible.

Seems like the 'broke, unemployed & dirty hippie' Europeans have it better than you, no?

You have to pay from here? I thought Brits didn't have to pay from abroad? Well, paying extra tax for the rest of your life definitely would suck. I hope you will save your cash and pay the rest off when you go home.

Also, the British ones don't count towards your credit rating? One of the reasons I've been so adamant about paying mine is that I am building up my credit score. When I go home, my credit score will be quite high. Heck the banks keep offering to raise my credit limits on my cards. So, I do like that part about the Canadian system.

I think changes brought in the last few years allow you to apply for debt relief after 10 years where the government will pay off the rest of your loans over the next 5 years. That was not part of the plan when I came here. You also had to wait 10 years to declare bankruptcy on your loans but now it's 7 years. (Then you wait another 6 years for your credit to clear.)

Living costs are high enough back home. I don't want to be saddled with extra deductions coming off my paychecks for student loans.

I've just met several foreigners who have run away from their debts and are now hiding out in Korea and living on cash.

ashleystar · « **Reply #5 on:** April 15, 2015, 11:22:07 PM »

I'm canadian. I had my loan payments deferred for the first little while that I was here so I could get settled and then made regular payments until I finished it all off in January! Being finished feels good. I worked so much overtime in the last four years in addition to working during all of my university and some of my high school years. It's so good to not need to work two jobs or work 60 hours a week at one job. When I roll back into Canada needing only to worry about basic survival instead of drowning in the quick sand that is student loans it's gonna be AMAZING.

cereal killer · « **Reply #6 on:** April 15, 2015, 11:23:31 PM »

Hate to be a Debbie Downer, but I have zero debt(been debt free for years now) and a shit ton of money in the bank. Feels great.

weigookin74 · « **Reply #7 on:** April 15, 2015, 11:27:48 PM »

Quote from: ashleystar on April 15, 2015, 11:22:07 PM

I'm canadian. I had my loan payments deferred for the first little while that I was here so I could get settled and then made regular payments until I finished it all off in January! Being finished feels good. I worked so much overtime in the last four years in addition to working during all of my university and some of my high school years. It's so good to not need to work two jobs or work 60 hours a week at one job. When I roll back into Canada needing only to worry about basic survival instead of drowning in the quick sand that is student loans it's gonna be AMAZING.

Well, my loans will be gone this fall. My Credit cards will remain, but hopefully 2016 will get that gone. So, there is light at the end of the tunnel. Yeah, I don't want to face living costs plus debts if I go back home.

ajr30 · « **Reply #8 on:** April 16, 2015, 12:25:42 AM »

I've been paying off credit cards about 6 or 7 months after I arrived in 2010. I had acquired quite a bit of debt while in college and even dumping nearly half of my paycheck into cards every month, I'm still about a year away from paying everything off. (Truth be told, I did move backwards a few times when taking trips to the States and getting married but the amount was peanuts compared to what I started with).

As far as student loans? I only have Stafford loans and I haven't touched them since I've left college. They've been in an income-based repayment plan which has me owing $0 every month. Once I finally got my act together and started paying off my debts, it seemed smarter to pay off higher interest credit cards before I even touched my student loans (10-30% interest on cards vs 6% on loans...)

warren_king · « **Reply #9 on:** April 16, 2015, 01:09:16 AM »

I'm south african so i'll chime in a bit from the south african side. the reason a lot of south africans come here with no doubt is because university in south africa is pretty cheap, especially compared to the rest of the world. i've seen the fees that Americans pay for university and it's absolutely insane. we get quite a few American students at the big universities in SA because it's way cheaper for Americans to pay even the international fees in SA + accommodation etc. than it is to just pay fees in the States.

because university is pretty cheap in south african it means that a lot of parents are able to pay for their childrens' university costs, which is why we don't really have to worry about fees that much. if you study really hard there are also quite a few bursaries and scholarships to go around. i worked my ass at university so i had my entire undergrad and almost all of my postgrad paid for by scholarships.

the average cost of a Masters degree per year in south african is about R40,000 at the most expensive university in the country - that's about 3,300 US dollars per year. of course international students pay more but even the international fees are dirt cheap compared to the fees i've seen for universities in the US. the costs over there are absolutely insane, and i have no idea how people ever manage to pay them. i have a lot of American friends over here in Korea and my jaw just drops every time some of them tell me how much they paid - and are still paying - for university.

regarding the UK - i dated a girl from England for a about 4 years so i know a bit about the university system over there and the costs. it is still significantly more expensive than SA but still pretty reasonable compared to the States it seems. and from what i've heard a lot of university students in the UK just default on their student loans because the government doesn't really do anything about it. met a lot of English people over here too who aren't concerned at all about paying back their student loans. if you're English and any of this is incorrect then please feel free to correct me.

it really seems like people from the States get absolutely shafted when it comes to university fees. from what i've heard from friends and from what i've read the fees system there seems akin to some kind of criminal enterprise that even the mafia would envy.

if anyone has any more questions about the university system in south africa then please feel free to ask. i'm almost done with my PhD so i've spent a ton of time studying in the system there, and i lectured part-time for 4 years in the university system so i know a little bit about how things work on the inside too.

Morfee · « **Reply #10 on:** April 16, 2015, 03:08:44 AM »

Quote from: warren_king on April 16, 2015, 01:09:16 AM

regarding the UK - i dated a girl from England for a about 4 years so i know a bit about the university system over there and the costs. it is still significantly more expensive than SA but still pretty reasonable compared to the States it seems. and from what i've heard a lot of university students in the UK just default on their student loans because the government doesn't really do anything about it. met a lot of English people over here too who aren't concerned at all about paying back their student loans. if you're English and any of this is incorrect then please feel free to correct me.

it really seems like people from the States get absolutely shafted when it comes to university fees. from what i've heard from friends and from what i've read the fees system there seems akin to some kind of criminal enterprise that even the mafia would envy.

if anyone has any more questions about the university system in south africa then please feel free to ask. i'm almost done with my PhD so i've spent a ton of time studying in the system there, and i lectured part-time for 4 years in the university system so i know a little bit about how things work on the inside too.

Basically if you work abroad, technically you should declare what you're earning to the SLC (Student Loans Company) and they will tell you what to pay them. They have a very clever system that says what you should pay, which includes cost of living in the country, etc.

A lot of people just send them a letter saying 'I'm travelling, I'm not paying anything for a while, I'll start paying when I return to the UK and earn above the threshold". Some people don't even bother doing that. This is all fine assuming they don't come after you etc. I've never heard of anyone being chased for the money, it just wouldn't be worth it. The taxman automatically takes it out of your UK wage, so I guess they figure you're either paying it back sooner or later, or leaving the country forever.

The way I see it, I'm only contributing a small amount, and it's something I'll have to pay one day anyway, so it's one less worry over here. I contribute very little too on this salary, so little that it does not bother me or affect me at all here.

Quote from: weigookin74 on April 15, 2015, 11:14:14 PM

You have to pay from here? I thought Brits didn't have to pay from abroad? Well, paying extra tax for the rest of your life definitely would suck. I hope you will save your cash and pay the rest off when you go home.

Also, the British ones don't count towards your credit rating? One of the reasons I've been so adamant about paying mine is that I am building up my credit score. When I go home, my credit score will be quite high. Heck the banks keep offering to raise my credit limits on my cards. So, I do like that part about the Canadian system.

I'm not saving any cash. I'm doing an insanely amazing and expensive trip home with all the money I've got left. There's literally no point in paying off a student loan in the UK. The interest is so small, that if you have any 'surplus' cash, it's wiser to put it in a savings account at a higher rate than the student loan is accruing at.

Why would I pay it for the rest of my life?
I'll try and make it simple with an example:
If I have a job earning $60,000, I will pay 10% of everything I've earned above $30,000.
This would be $3,000 per year.
In this scenario, and assuming I kept this same salary, and ignoring the interest for the same of simplicity, I'd pay my loan back in 10 years or so. ($3,000x10 = $30,000). There's also an expiry on the debt also, I can't remember offhand when it expires.

Because the money comes directly from your wage as a kind of tax (if you like), there's not 'OH HE DIDNT PAY' thing to affect your credit rating. I've never worried about credit ratings in my life, I don't see why you seem to think it's so important? If I have a decent wage, I'll be able to get a mortgage on a property in any case.

Morfee · « **Reply #11 on:** April 16, 2015, 03:21:47 AM »

Quote from: weigookin74 on April 15, 2015, 11:07:22 PM

Quote from: Morfee on April 15, 2015, 09:15:44 PM
I have student loans back home (UK). They are government loans (as all UK student loans are). I pay back a small amount as I don't earn much above the UK threshold here. I did 5 years of University in total, and have $30,000US in 'debt'. I didn't get any support from my parents really, so that was rent, living costs and tuition fees. I worked during the summers and in a bit here and there in the rest of the year as well sometimes. If I was working in the UK, ever 1$ over $30,000 per year that I earn would be 'taxed' at an extra 10% or so to pay back the loan. People graduating now are worse off than my debt.
I know a lot of people don't pay at all because they can't track you abroad really and they don't chase you (and student loans don't do anything to your credit rating). Interest will obviously compound if you don't pay, but I think it's 0.5% PA at the moment, so pretty negligible.

Seems like the 'broke, unemployed & dirty hippie' Europeans have it better than you, no?

Well, actually, I never considered Britain, except geographically speaking, a part of Europe as most Brits have always viewed themselves apart from the "Continent". They have always been more capitalist than most other western or southern European countries.

I don't even... What?

I'm trying to put this in the nicest way: You have some really strange views of Europe, ones that are just plain wrong. Please visit the non-capitalist, communist, crazy, poor and hippie nations of Germany, the Netherlands, France, Spain and Italy one day and maybe your unmovable opinions will be shattered.

prplbuttercups · « **Reply #12 on:** April 16, 2015, 09:36:41 AM »

We paid off my partner's debt in 1 year. 30,000nzd

and still managed to save 10,000. I didn't have any loans from america. Now we're debt free. I don't enjoy teaching in Korea anymore. :( I've got 12 months and 2 weeks left on our contracts.

turnquest · « **Reply #13 on:** April 16, 2015, 10:02:22 AM »

I am. I don't have much credit card debt, but I have a LOT of student loans from undergrad (mostly private). So, I send the equivalent of about $700 USD a month back home to pay loans and other bills. I wanted to try to pay less, but Sallie Mae/Navient wouldn't work with me. I haven't really saved anything in the past 7 months that I've been in Korea but at least I have the money to pay for things that need to be paid for, since my parents are not really financially in the position to help me right now.

...I don't think I would ever just not pay, partially because my grandma is a cosigner on one of my loans and I know they would bother her if they couldn't get a hold of me. I also don't plan on being in Korea forever unless I get married or something. So, I don't want anything showing as having gone into default when I get back home to the States.

I don't think I'll ever be debt free, but, whatever. Do what you have to do.

Soggysocks · « **Reply #14 on:** April 16, 2015, 10:57:17 AM »

I've been in Korea for 1 1/2 months, and I've paid of 95% of my debt (obviously it wasn't that much). I'll send a little bit more next paycheck, and from then on out, it'll just be savings. I'm very happy about it. It takes off a significant amount of stress, and I'm able to spend the rest of my money on frivolous pleasures: shopping in Seoul, BigBang concert tickets, a bicycle, beauty treatments, trips to Japan. It's very nice.

Joshua1211 · « **Reply #15 on:** April 16, 2015, 11:09:57 AM »

I've been paying off my debt from college for about 2 years as well as credit cards (Used for start up costs, and buying a new computer). I'm an American and I've been able to pay off debt, cards, travel, and still save money here. Not sure how the debt/ loan system works in Canada (I think you said you're Canadian right?) but I deferred my student loans after college and it was one of the biggest mistakes of my life. My initial payments were $90/month, after deferrment my payments jumped up to $200/month and I've been paying that every month for over two years now. So I strongly recommend to just bite the bullet and make your monthly payments. Don't defer. It's also better for your credit line.

brightredkat · « **Reply #16 on:** April 16, 2015, 11:12:04 AM »

Quote from: Morfee on April 16, 2015, 03:08:44 AM

Basically if you work abroad, technically you should declare what you're earning to the SLC (Student Loans Company) and they will tell you what to pay them. They have a very clever system that says what you should pay, which includes cost of living in the country, etc.

A lot of people just send them a letter saying 'I'm travelling, I'm not paying anything for a while, I'll start paying when I return to the UK and earn above the threshold". Some people don't even bother doing that. This is all fine assuming they don't come after you etc. I've never heard of anyone being chased for the money, it just wouldn't be worth it. The taxman automatically takes it out of your UK wage, so I guess they figure you're either paying it back sooner or later, or leaving the country forever.

It's funny you should mention that. This month i've actually been chased down by SLC for arrears of 14 quid...about two months ago they contacted me and told me to fill some forms and apparently they've decided I should be paying 14 each month.
It's very strange because I've been here for a year and a half and their contact was a little out of the blue. The only thing I can think of that might have alerted them is the fact that I applied for a proxy vote for the upcoming general election. Strange.

Jharris · « **Reply #17 on:** April 16, 2015, 11:21:58 AM »

I'm a Brit and after 3 solid years of working abroad the SLC caught up with me as my UK post is registered at my parent's house. I didn't apply for anything like proxy voting, I think they're just desperate for cash so are chasing it from anywhere they can get it. I pay 19 quid a month so it's not worth complaining about really. If it isn't paid off by the time we hit 65 it'll get wiped and it doesn't affect our credit rating so it's not something worth stressing about.

SpaceRook · « **Reply #18 on:** April 16, 2015, 11:23:48 AM »

Quote from: weigookin74 on April 15, 2015, 08:24:30 PM

In America, there are many different kinds of loans and you can't default or go bankrupt on most of them. (One American guy I know isn't paying. He's just saving money here and says he will settle with them down the road to wipe the debt or write it off.)

I really don't know what fantasy world your American friend is living in. Getting student debt "written off" is nearly impossible.

jwharrison30 · « **Reply #19 on:** April 16, 2015, 11:24:07 AM »

Quote from: Jharris on April 16, 2015, 11:21:58 AM

I'm a Brit and after 3 solid years of working abroad the SLC caught up with me as my UK post is registered at my parent's house. I didn't apply for anything like proxy voting, I think they're just desperate for cash so are chasing it from anywhere they can get it. I pay 19 quid a month so it's not worth complaining about really. If it isn't paid off by the time we hit 65 it'll get wiped and it doesn't affect our credit rating so it's not something worth stressing about.

did you have to pay a lump sum for skipping those years?

Author Topic: Who is paying their student loans and credit card debts from here? (Read 2092 times)

Recent Lesson Plans

Buy/Sell/Trade

Employment