Does anyone have experience adjusting their student loan payment to an income based payment. That is what I have right now, so it is a relatively small payment, but how would it work adjusting it to an international currency?
Thank you in advance.
student loan payments
Reply
I became an IT so I could avoid paying my student loans. Now Im a DoDDS teacher and I have to pay them back, but Im going to get them all forgiven after 7 remaining years.
You dont have to adjust for currency exchange. Your promisory note requires your loans to be paid in USD. Your lender or servicer may accept a foreign check or draft drawn on local currency, but you risk being short on the payment. Your payment may be rejected and returned and hence late or a considered a missed payment.
Most ITs with student loans:
1) Purchase a draft or cashiers check in USD and send it to their lender.
2) Make a deposit to their US bank account, and then use bill pay to pay their lender.
3) Make their payment with a credit or debit card online.
4) Wire or use a cash remittance service (Western Union, Money Gram) to pay their lender. Sallie May has a quick collect arrangement with Western union that you can wire the payment for on average of $5.
You dont have to adjust for currency exchange. Your promisory note requires your loans to be paid in USD. Your lender or servicer may accept a foreign check or draft drawn on local currency, but you risk being short on the payment. Your payment may be rejected and returned and hence late or a considered a missed payment.
Most ITs with student loans:
1) Purchase a draft or cashiers check in USD and send it to their lender.
2) Make a deposit to their US bank account, and then use bill pay to pay their lender.
3) Make their payment with a credit or debit card online.
4) Wire or use a cash remittance service (Western Union, Money Gram) to pay their lender. Sallie May has a quick collect arrangement with Western union that you can wire the payment for on average of $5.
I think the question is, how do you translate your income so that the monthly payment can be calculated. Usually monthly student loan payments are capped at like 15% of monthly income. If I understand correctly, the question isn't how to make the payment, but how do folks working overseas provide documentation of income to determine the payment...?
Reply
My apologies, I misunderstood the question. Their are two approaches (the good and the bad (although the bad is really the ugly).
1) Supply a copy of your contract to your lender which should state your yearly salary. Subtract taxes and other deductions Then convert the remaining amount using the published currency exchange rate from the Wall Street Journal, New York Times. Divide that by 12 (your take home pay) and then take 15% of that and thats your payment.
2) Tell your lender you make whatever you want them to think you make, and pay 15% of that.
1) Supply a copy of your contract to your lender which should state your yearly salary. Subtract taxes and other deductions Then convert the remaining amount using the published currency exchange rate from the Wall Street Journal, New York Times. Divide that by 12 (your take home pay) and then take 15% of that and thats your payment.
2) Tell your lender you make whatever you want them to think you make, and pay 15% of that.
I did this last year- my director wrote a letter stating what my yearly salary was and that I was employed at the school. Since the school doesn't have W2s, the letter was sufficient and I am on the IBR plan for my student loans. I'll have to update the letter each year, and that is it. It was pretty easy to do and mail from overseas.
-
interteach
- Posts: 213
- Joined: Wed Nov 29, 2006 2:25 pm
Reply
Depends on the country. You may easily find yourself being paid in cash, and very few schools report to the IRS your tax information. You could just as easily right your own letter. Your lendor isnt going to call at midnight a country where they dont speak english. A number of teachers i know claimed they were teaching ELL at a language school. They ended up paying almost nothing for years. Even better you could just claim your unemployed and use a family members address. You could bank your full salary for a number of years without paying anything.
@interteach
It was one of the two reasons. My other was to meet more woman.
@interteach
It was one of the two reasons. My other was to meet more woman.
-
escapeartist
- Posts: 76
- Joined: Fri Dec 07, 2012 1:39 pm
Comment
Yeah to meet more woman, well woman i was interested in that I had a shot with. Before i became an IT if you didnt make 6 figures, have a house, and drive at least a Lexus/BMW/Mercedes american woman dont want anything to do with you.
This is one of the few points I will agree with psyguy completely. Opening your dating pool is a good reason to leave. Expecting Mr or Mrs right to move into your town and meeting him/her might be a little hard. Blank slate, new people to meet and reject you, and the possibility to move somewhere else in a couple of years to escape.....well.
I'm glad I left.
I'm glad I left.