# Paying American student loan while in AU



## Ameristralian (Nov 23, 2009)

I am moving to Australia for at least 2 years, and possibly permanently, with my Australian husband. I currently have a massive student loan in America...and while I am sure I could be like one of these other people who flee to another country to avoid their debt, I plan on paying it back.
But they don't make it easy. I am wondering if anyone has any experience in this?

The loan payments must be made in US dollars, and if done electronically must come from a US bank. I have come up with a couple of ideas.
- International money orders - but I have heard they charge outragiously for them
- Converting my cash and mailing it to my parents to put into my US checking acct.
- Wiring the money from AU bank to US bank, but again big fees
- One of the companies will accept credit card payments for a fee, but the credit cards still want to be paid in $US
- Lastly someone that had been living in Dubai said they had half of their paycheck direct deposited into their US account from their employer at a 1% fee...this seems to be the best bet, but would that work in AU?

I am open to any other suggestions. I've paid only 22% of a 123K loan, so I still have ALOT to go.


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## kaz101 (Feb 17, 2010)

What about using a currency exchange such as HIFX (which is advertised to the right)? We have used them (and other currency exchanges depending on who gives us the best rate) to send money to and UK to USA, Australia to USA and back again. 

Depending on the amount of money they may waive transaction fees. 
It may be worth investigating as an option...

Regards,
Karen


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## Wanderer (Jun 16, 2007)

It looks like you're on the right track with your ideas re


> The loan payments must be made in US dollars, and if done electronically must come from a US bank. I have come up with a couple of ideas.
> - International money orders - but I have heard they charge outragiously for them
> - Converting my cash and mailing it to my parents to put into my US checking acct.
> - Wiring the money from AU bank to US bank, but again big fees
> ...


And a case of looking at the option costs.
It'll be a lucky find to get any organisation to do it for free and I'd suspect you'd need a swag of money deposited with them that they made money on before you got anything like that, and so:
*1.* Can understand that money orders could be an expensive route, sort of the old way - Western Union and all that.
*2.* *Posting Cash *I'd steer clear of for just the disappearance risk or cost of registered mail and then you'll find that the exchage rate you get is not going to be so good when you walk into a bank and want them to buy your other currency.
*3. Bank wiring *is now all done electronically, a bit like national electronic payments and transfers etc., some countries using in past what was called a Swift Code, basically an international Bank ID, similar to what we call BSBs nationally and it could be the banks internationally use International Bank Number/code or something like that terminology now but that allows you to do an international transfer yourself online if you have provision on your account with your bank and back a few years it was a flat rate of about $28, a couple of years since having done one and so possibly a bit higher now.
It was much the same cost doing it in the bank.
*4. Credit Cards* I use a credit card to pay some international bills [another cuurency] and yes, I pay a small levy on top of the usual credit card fee for an international transaction as when you make a purchase overseas and it is more the convenience for me - if the US payment recipient has provision for paying online by credit card, are you sure you can not just enter a payment in US$ and Visa or whichever does the conversion to an Australian Bank statement - that's the way it happens with mine. 
*5.* I have heard of that _[ or total salary being paid into a foreign account - even in Australia but the people were possibly employed with an international organisation ]_, but I would be surprised if an Australian employer would set something like that up for a single employee unless they were a top executive brought in from overseas and it was set up with an initial contract.

I reckon you ought to compare *3*. & *4.* , the exchange rates you'll get probably being about the same at any given time and then you can compare the fee costs on a % basis and also look at what it might mean % wise by making quarterly or half yearly payments as against loss of interest if you had the money invested in a term deposit, eg.

Say you had a $1000/m payment, sending that via the bank to your parents bank for them to pay might be $40 or 4%
But if you sent three months worth at $3000 @ $40 it is only 1.3%, a *savings of $80*
You would have lost the opportunity of having $1000 earning say a max. of 6%p.a. at current rates for a month and another $1000 for 2 months, *loss of $15 *

So other than exchange rate variations [ always a bummer to predict ] you would be $65 in front by paying quarterly and more by doing it six monthly, probably evening out with exchange fluctuations.

Paying by credit card if fee is a % rate [ which they usually are] of say 3% will not offer same potential savings for you will still pay 3% regardless of how much you transfer.

Doing cash lump transfers may have some further potential advantage for if there is interest payable on your loan, and the whole lump sum is transferred to it by your parents on a six monthly receipt, you'll be saving on interest to be paid just as with any early loan pay off.


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## ethan1066 (Mar 28, 2010)

*reply*

It seems that you need cash very fast and it can be challenge to get the cash that you need. i am not sure you are eligible for that but i must say thatt the best option for them is to get approved for payday loans. They do not give you a credit check and they do not have a lot of paper work to fill out. ..before that i must say you that they have high interest rates than normal ..but that rate wont really matter if someone is in great need...


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