The modern world can be quite intimidating and young people with student loans often feel trapped. This does not have to be the case, and in many situations young people can repay their loans abroad even faster. There’s literally a world of possibilities, and it’s at your fingertips.
And for students still in college, there are ways to make their student loans work for them, too. The cost of American universities is so high that young people will probably save money by studying abroad for a semester, two or three. Really, the last thing student loans should make young people feel is trapped.
Using student loans to travel
Travelers might be surprised to learn that they can use their student loans to travel. Now, this is not a recommendation to go and spend all of a traveler’s loan money on a trip. But, if studying abroad is something a traveler is considering, they should definitely use their student loans to do so. Many overseas schools have significantly cheaper tuition than US schools. The disparity generally allows travelers to cover the additional costs of living abroad without paying more than the usual tuition fees.
Need help? Try a travel loan
Travelers may need additional funds while studying abroad in case they take additional trips. In this case, they can take out a travel loan. Travel loans are often available to students, although they may need the help of a co-signer. As students, they are unlikely to already have a good enough credit score.
- APR – The amount of interest and fees you have to pay a lender to borrow money.
- term of the loan – A loan term is the period of time during which you must repay your loan.
- Credit score – Determines your creditworthiness or the likelihood that you will repay a loan on time.
- Co-signer – Getting a co-signer can help you secure a travel loan; however, if you are unable to repay the loan, the responsibility will fall to your co-signer.
Living abroad with student loans
Millions of expats live and work abroad, and many of them have student loans or other forms of debt that they are still paying off. With many remote work opportunities, ESL schools or overseas companies looking to bring overseas talent to work for them, there are plenty of opportunities for young people with student loans to go abroad.
Repay loans on time
Travelers will need to establish a safe and efficient way to transfer money overseas. It can be as simple as a visit to a local bank where a young traveler lives, but it’s not always convenient and often comes with a lot of fees. Fortunately, platforms like PayPal and Payoneer can often be used to save time and money.
Taxes correctly completed
The biggest mistake travelers living abroad make is either not doing their taxes every year or doing them incorrectly. It’s easy to not keep up with tax season in the United States or to think there’s nothing to do because travelers aren’t making money in the United States. It’s a dangerous thought process and one that has gotten a few expats in trouble. In short, find an online tax site; the IRS website is actually helpful for that, and properly report your income and status to the IRS. Travelers may hate the idea of an hour or less of work for zero dollars, but it’s better than the alternative.
What happens if travelers don’t file their taxes correctly or don’t pay their student loans on time?
However, the severity of these penalties varies. It is usually based on the seriousness of the violation or violations. If travelers stop paying federal student loans, the US government may begin garnishing wages if travelers work for a US-based company. The government can also garnish tax refunds when taxes are filed.
Now, for some travellers, the above will not affect them, in which case they may just have to stay abroad. They would likely be sued and summoned to court and probably forced into bankruptcy by the end of it.
The situation is similar if travelers do not pay their taxes on time. With taxes, however, if the IRS can prove travelers intentionally hid income, etc., travelers will be in a ton of trouble as well. Make life abroad fun! Don’t let student loans put a damper on a traveller’s adventures.