|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
mortilap1
Joined: 12 Oct 2013
|
 Posted: Sun Mar 02, 2014 2:10 pm Post subject: Is this a good plan to pay off my student debt? |
 |
|
Hi everyone,
I'll have about 15,000 dollars worth of student debt to pay off beginning November 2014. I really want to go to Southeast Asia and travel for a while, so I'm thinking about going there for a few months this summer with about 5-6k saved up, then making my way to South Korea to teach English for a year. I'm pretty confident I could pay off all the debt after a year of teaching.
Some questions I have:
1. How much can I realistically save up in a year by teaching at a hagwon? What if I did some private classes on the side? I live frugally and rarely spend money I things I don't need (such as alcohol or random stuff).
2. Once I depart for Southeast Asia, everything I own will be in a backpack. As far as clothing goes, should I just buy decent clothes to teach in once I get to South Korea?
3. What happens if I sign a contract in June to work in August, and then while in Southeast Asia something else comes up that makes me want to break the contract?
Thank you! |
|
| Back to top |
|
 |
andrewchon
Joined: 16 Nov 2008
Location: Back in Oz. Living in ISIS Aust.
|
| Posted: Sun Mar 02, 2014 9:11 pm Post subject: |
|
|
1. around $10k
2. Buy stylish clothes.
3. Jesus Mary Joseph
Why don't you go to SE Asia straight up? Make the right connections and your student loan will seem like a pocket change.  |
|
| Back to top |
|
|
Otherside
Joined: 06 Sep 2007
|
| Posted: Mon Mar 03, 2014 2:03 am Post subject: |
|
|
1. $10K is average. Living frugally could push it to $15k. Teaching privates on the side is illegal.
2. That would be a good idea. However, if you're "Western-sized" it can be hard to find clothes in Korea.
3. What would happen if you signed a contract in June to work in August, and the school later decided to choose a different candidate? |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Mon Mar 03, 2014 8:21 pm Post subject: |
|
|
| Come to Korea and pay off the loans first. Take about two years or maybe just shy of that. Then work for several more months or even a year after that and have all the cash you need to live cheaply in SE Asia for a year or more. Problem solved. (Save more, pay for an expensive TESOL later, then you can teach down there if you need some cash sometimes.) |
|
| Back to top |
|
|
YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
|
| Posted: Mon Mar 03, 2014 9:02 pm Post subject: |
|
|
| Quote: |
| I'll have about 15,000 dollars worth of student debt to pay off beginning November 2014. |
2,200,000/month * .75 = 1,650,000 = 1537.80 USD
15,000/1537.80 = 9.75 months
| Quote: |
| I'm thinking about going there for a few months this summer with about 5-6k saved up |
You're moving the goal posts now.
15,000 - 5,500 = 9,500
9,500/1537.80 = 6 months
| Quote: |
| I'm pretty confident I could pay off all the debt after a year of teaching. |
You could earn 28,600,000 won = $26,655 USD in a year and have another 1,188,000 = $1,100 USD if you cash in with the pension money.
Increase your confidence level, take responsibility for your loans, put the South Asia trip on the back burner until you have met your obligations.
You can speed up the process by trying to save 5% more and only spend 20% of your monthly budget. This is 110,000 won = $102 USD more each month.
Another thing you might not be aware of is that when you keep that 100 more each month it means you can buy in bulk and keep food and other things home you would normally go out to buy. This increases your savings and after 2 or 3 months, you can just bank 100% of your pay each month. Obviously, it will take more than 5 months.
Set 7 or 8 months as your goal. This will do 2 things. One, it will get you debt free, and you can go traveling without feeling your debt level increase. Since you would have paid off 15,000 in a relatively good time frame you can enjoy your time better knowing you can make the money again later. Also, once you get past the 6 month mark, you won't need to pay back airfare. It's easier to get a new job if you have shown 6 months or more on your resume.
| Quote: |
| What happens if I sign a contract in June to work in August? |
What happens is that you get a summer job after the end of this semester, work May or mid-May to July (~3 months), earn at least $1,000 and now you can pay off 8,500 of your loan, leaving 6,500 to earn in Korea. I took a babysitting job (150/day), earned 3,000 in a month's time and studied abroad with the money.
In your case, you could be debt free 4 months later. |
|
| Back to top |
|
|
Troglodyte
Joined: 06 Dec 2009
|
| Posted: Tue Mar 04, 2014 6:06 am Post subject: Re: Is this a good plan to pay off my student debt? |
|
|
| mortilap1 wrote: |
Hi everyone,
I'll have about 15,000 dollars worth of student debt to pay off beginning November 2014. I really want to go to Southeast Asia and travel for a while, so I'm thinking about going there for a few months this summer with about 5-6k saved up, then making my way to South Korea to teach English for a year. I'm pretty confident I could pay off all the debt after a year of teaching.
Some questions I have:
1. How much can I realistically save up in a year by teaching at a hagwon? What if I did some private classes on the side? I live frugally and rarely spend money I things I don't need (such as alcohol or random stuff).
2. Once I depart for Southeast Asia, everything I own will be in a backpack. As far as clothing goes, should I just buy decent clothes to teach in once I get to South Korea?
3. What happens if I sign a contract in June to work in August, and then while in Southeast Asia something else comes up that makes me want to break the contract?
Thank you! |
1. Consider that you can probably save 2/3 of your salary. Your rent is taken care of so really you're just looking at utilities and food. You'll probably have to buy clothes at some point but if you get cheap clothes you can always just leave them behind when you leave. They'll last at least one season.
2. That's an option. You could also ask someone back home to mail you a box of stuff surface mail once you know your Korean address. But there are plenty of places to buy cheap clothes here. They might not be great quality but they'll last you a season.
3. There are not legal repercussions. You're allowed to terminate a contract. And BTW, it's not "breaking" a contract because the law specifically allows you to do it, even if the employer doesn't want you to. Bear in mind that most places will not deal with you until your have all of your documents ready and then they'll probably want you to get the visa right away and start working within a few weeks. You'd be better off applying for the job soon before you're ready to start working. Or an easier option is to just start working in June and then have your trip around Asia AFTER you finish up here. The logistics would be simpler. It would also give you a chance to meet up with other people who had gone to the places you want to see and who can give you some advice (best places to go, stay, visit, when to go, what to avoid, etc.).
But legally there are no repercussions - unless you somehow managed to get the visa that far in advance. In that case you'd need to get new documents to get a whole new visa (after going to Korea).
If you travel around Asia before coming to Korea, then your employer probably won't cover your flight here. |
|
| Back to top |
|
|
Stan Rogers
Joined: 20 Aug 2010
|
| Posted: Wed Mar 05, 2014 9:14 pm Post subject: |
|
|
| I know a guy who never paid his student loans and travels to south east Asia 2 times a year. He said he's never going back to America, so he doesn't care. |
|
| Back to top |
|
|
YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
|
| Posted: Thu Mar 06, 2014 1:34 am Post subject: |
|
|
| Stan Rogers wrote: |
| I know a guy who never paid his student loans and travels to south east Asia 2 times a year. He said he's never going back to America, so he doesn't care. |
Yes, when I am 80, I will do the same. Instead of America though, it will be life. I'll do all the drugs I can and steal whatever I can. Enjoy your bucket list. |
|
| Back to top |
|
|
SpedMaestro
Joined: 02 Mar 2014
|
| Posted: Fri Mar 07, 2014 7:54 pm Post subject: |
|
|
| Stan Rogers wrote: |
| I know a guy who never paid his student loans and travels to south east Asia 2 times a year. He said he's never going back to America, so he doesn't care. |
This is my plan. Defaulting on student loans only hurts you if you have U.S based income/assets which I don't. Why pay back$50K in student loans I owe, when I could save up and buy a condo somewhere exotic? Its called thinking out of the box comrades... |
|
| Back to top |
|
|
mortilap1
Joined: 12 Oct 2013
|
| Posted: Sun Mar 09, 2014 12:44 pm Post subject: |
|
|
You don't think the employer would cover my flight if I was already in SE Asia? Why is this?
Also: how tough would it be from a logistical standpoint for me to get a job while on the road backpacking. I figured if I prepared all my documents before leaving, then I should be okay. Interviewing may be tough if I don't have a decent internet connection though.
What do you guys think?
Thanks |
|
| Back to top |
|
|
Troglodyte
Joined: 06 Dec 2009
|
| Posted: Mon Mar 10, 2014 6:14 am Post subject: |
|
|
| mortilap1 wrote: |
You don't think the employer would cover my flight if I was already in SE Asia? Why is this?
Also: how tough would it be from a logistical standpoint for me to get a job while on the road backpacking. I figured if I prepared all my documents before leaving, then I should be okay. Interviewing may be tough if I don't have a decent internet connection though.
What do you guys think?
Thanks |
1. They don't like doing things out of the ordinary. If you're already in Asia, then they'll just offer to pay your flight from "wherever you are" (Thailand, China, Vietnam, etc.) to Korea. Unless of course it's more expensive in which case you're less likely to get the job.
2. The logistical problems are perhaps not a major issue. Employers generally want you to be ready to go right away. So you would have to start interviewing near the end of your trip and hope that you find something right away. It might be hard to predict whether you'll get a job offer within 1 week or within 1 month. If you go to Korea for the job search then your application automatically goes into the upper part of the pile. The logistical problems also extend to you being ready for the job (e.g. not showing up in sandals and tattered clothing and carting around a backpack full up unwashed clothing). But also you've got to be checking your email every day and have a phone so that the recruiters and schools can call you.
Generally, employers want a sure thing. If you're backpacking, then they won't be sure if you're really coming (you yourself said as much). They'll take the buy living in his mom's basement who's eager to get out of there and start working tomorrow - the same guy who they feel is less likely to get bored and leave after a few months.
I'm not saying that it's impossible to do. It's quite possible. I'm just saying that it sounds like a pain in the butt. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Tue Mar 11, 2014 7:58 pm Post subject: |
|
|
| YTMND wrote: |
| Quote: |
| I'll have about 15,000 dollars worth of student debt to pay off beginning November 2014. |
2,200,000/month * .75 = 1,650,000 = 1537.80 USD
15,000/1537.80 = 9.75 months
| Quote: |
| I'm thinking about going there for a few months this summer with about 5-6k saved up |
You're moving the goal posts now.
15,000 - 5,500 = 9,500
9,500/1537.80 = 6 months
| Quote: |
| I'm pretty confident I could pay off all the debt after a year of teaching. |
You could earn 28,600,000 won = $26,655 USD in a year and have another 1,188,000 = $1,100 USD if you cash in with the pension money.
Increase your confidence level, take responsibility for your loans, put the South Asia trip on the back burner until you have met your obligations.
You can speed up the process by trying to save 5% more and only spend 20% of your monthly budget. This is 110,000 won = $102 USD more each month.
Another thing you might not be aware of is that when you keep that 100 more each month it means you can buy in bulk and keep food and other things home you would normally go out to buy. This increases your savings and after 2 or 3 months, you can just bank 100% of your pay each month. Obviously, it will take more than 5 months.
Set 7 or 8 months as your goal. This will do 2 things. One, it will get you debt free, and you can go traveling without feeling your debt level increase. Since you would have paid off 15,000 in a relatively good time frame you can enjoy your time better knowing you can make the money again later. Also, once you get past the 6 month mark, you won't need to pay back airfare. It's easier to get a new job if you have shown 6 months or more on your resume.
| Quote: |
| What happens if I sign a contract in June to work in August? |
What happens is that you get a summer job after the end of this semester, work May or mid-May to July (~3 months), earn at least $1,000 and now you can pay off 8,500 of your loan, leaving 6,500 to earn in Korea. I took a babysitting job (150/day), earned 3,000 in a month's time and studied abroad with the money.
In your case, you could be debt free 4 months later. |
Taxes, pension, and medical will take off maybe 150,000 a month off that amount? In winter for my energy efficient villa, I pay 60,000 gas in winter, 12, 000 electric, and 40,000 internet and cable. I use an old 2G phone and pay 15,000 won for phone bill. In summer, the electric is 50,000 won, the gas, 9,000 won, and the cable and internet is 40,000 won. A smart phone will be 80,000 won a month or more.
If you have an energy inefficient place or an older building where you're charged water fees and other fees (I'm not), then it will take more of your money.
At any rate all of the above, take 300,000 to 400,000 won a month off the 2.2 million salary. You have 1.8 left over. What do you need for transportation and food (cooking at home, eating out, etc)? What other things do you need to spend on?
I try to keep 900,000 in Korea each month. But, I pay my utilities out of that and have extra travel expenses each month as I drive here. If no car and being close to my school (s), I could prob do with a little less.
Leave yourself, maybe 700,000 first month and see if you need more or less the next month. So, you'll probably send 1.1. or 1.2 million home. Up until a year ago, that was maybe 950 bucks. Now, maybe 1250 bucks. (Thanks rising exchange rate.)
So, you should have 1200 bucks in your bank account back home once the money is transferred. You can pay off student loans, credit cards, and any other outstanding debts you may have. Don't forget to deduct interest from that amount. Your whole payment will not go on the principal, so it may take slightly longer to pay this down than you think.
Maybe, you'll pay 900 or 1000 bucks on the prinicpal starting out depending on your interest rates and repayment terms. But huge payments will bring that down quickly. |
|
| Back to top |
|
|
Weigookin74
Joined: 26 Oct 2009
|
| Posted: Tue Mar 11, 2014 8:01 pm Post subject: |
|
|
| Maybe only send a partial amount home your first two months and keep the rest or half of that amount close in case you get into a bad situation (like screwed by your boss). So, basically, a 10 K debt, count on it taking your whole first year. More, more time. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
