Korean Job Discussion Forums

asams · Joined: 17 Nov 2008

I have student loans that I'm supposed to start paying in March. With the ever decreasing value of the won I've decided that it would be more beneficial for myself, and my lenders, to allow me to save what I can and send in lump sums when the won hits a certain point.

Do you think this is a wise strategy?

I definitely going to pay every penny back, I have no choice. Plus, I want to go to law school and I want to get as much off of my plate as I can before that happens.

I live pretty frugally, and I imagine I could save over 1 million W per month. If I do this for 10 more months I could potentially send home $6,000-$8,000 USD at the end of the year. However, if send home money every month I would probably only be able to send back $5,000 US at the max. This is all assuming the won gets stronger.

Any suggestions or ideas?

megandadam · Joined: 28 Dec 2008 Location: toronto, canada

im in a similar boat. i owe about 40,000 (yay education) and i know i can't pay it all back in one year; yet i hope to pay about 10,000 back this year and probably more b/c my wife and i will both be working.

great question though i think it depends on how much you owe and whether or not monthly payments are a must in your situation.

dean_burrito · Joined: 12 Jun 2007

you should be able to defer your payments with the option of paying off only interest every now and then (not sure of the exact periods). The main thing is to not default. I've been considering doing this myself. That 300 usd payment right now kinda hurts.

Ya-ta Boy · Joined: 16 Jan 2003 Location: Established in 1994

berrieh · Joined: 10 Feb 2009

If you can prove hardship, you can defer US student loans pretty easily. They'll still have you pay the interest, likely.

That said---it's better to prepare for the worst (won getting lower; I'd prepare for as low as W2000/$ though it may not happen) rather than simply hope for the best. Hoping is good, but you won't be too happy if your money declines even more.

In the US, the most they can make you pay is 15% of your income. So if that's lower than your minimum, they'll have no worries letting you pay it back slower without defaulting. Most creditors will want to see SOMETHING though - even just the interest - because it shows you will, in fact, pay them back. Getting nothing on a regular basis makes them nervous. And they're already nervous as-is.

As far as your plans, good luck swinging them. Law school usually requires private loans (from what I've heard, Stafford loans can't come close to covering it, particularly in the first year where you can't work), so I wouldn't count on that in the near future, with the credit crunch. Government student loans are still flowing, but private loans are drying up, particularly for things like law school. Lawyers are losing their jobs in droves.

We're nowhere near the bottom of this hole - Korea or U.S. or anywhere in the world. Things are going to get ugly.

Omkara · Joined: 18 Feb 2006 Location: USA

If there is even the slightest chance that you'll stay for more than one year, open a time account here, earn that interest, which will be higher than the interest which you pay on student loans, and only pay the minimum or defer your student loans.

Waiting the extra time will also allow for the won to appreciate. Granted, this will require patience on your part. Only after your accounts have matured and the won appreciated should you shift your money home.

Try to open a KEB account. I understand that you can establish an international account which you can monitor via Internet. That way, even if you don't stay for more than a year, you may be able to shift the money home from abroad when all is ripe.

Even then, it may be wiser for you to keep that money in some interest yielding account at home, assuming that interest is higher than that you are paying on your student loans.

It is not always smartest to pay off your loans quickly. It is where you put your money that counts.

asams · Joined: 17 Nov 2008

thanks for the advice everyone.

Maybe I should invest in gold. Haha.

I definitely won't just let my money sit in a bank, I plan on putting it somewhere that it can accrue interest. If I do go home in a year and the won still isn't strong I'll simply leave it sitting and then take it out when it gets to a better place (i.e. just below 1300 or so).

Does anyone else find themselves hoping GM tanks? This might open the door for Hyundai. But it would also mean for a time no one would buy cars.

This economy sucks