Best way to pay off student debt?

[TheBrit]

Worth noting you are taking exchange rate risk if you refinance all or part of a GBP loan in HKD. Although the interest rates are lower, the lower interest costs could be wiped more than wiped out if GBP appreciates against HKD.

[civil_servant]

Then take out a loan locally to cover your payments to Nov '18, transfer that and pay locally. No need to over do the loan. Atleast you're saving for the next year or so. If your contract is extended, take out another loan to cover that amount.

Assuming you can get a loan here in HK at the rates residents with presumably a good relationship with the bank are getting.

Would that help though? He'd pay down a lump sum, but he'd still have to make monthly payment on the remainder, thus transfer money all the time. If he just keeps the money overseas and uses that to do monthly payment then he'll be subjected to interest on his UK and his local loan.

[shri]

You're right - just figured (my incorrect assumption) that you might be able to pay a year's worth of instalments in advance.

Ignore everything I've said or might say today.

[civil_servant]

Worth noting you are taking exchange rate risk if you refinance all or part of a GBP loan in HKD. Although the interest rates are lower, the lower interest costs could be wiped more than wiped out if GBP appreciates against HKD.

No exchange rate risks at all if he pays it all off. He's getting paid in Hong Kong dollars and pays in Hong Kong dollars. If anything, he's exposed to exchange risks right now. An appreciating GBP would decrease his disposable monthly income.

[Jmjmjmjm]

I've found Clearfx to be much easier/faster/cheaper than using banks..

[TheBrit]

No exchange rate risks at all if he pays it all off. He's getting paid in Hong Kong dollars and pays in Hong Kong dollars. If anything, he's exposed to exchange risks right now. An appreciating GBP would decrease his disposable monthly income.

If he takes out a HKD loan now and pays off the GBP debt; and then Sterling depreciates 10% he is in a worse situation than if he simply continued to pay monthly. The minor differential in interest rates could easily been wiped out by an adverse move in the currency. Just something to think about if you have a strong view on Brexit economy.

[civil_servant]

If he takes out a HKD loan now and pays off the GBP debt; and then Sterling depreciates 10% he is in a worse situation than if he simply continued to pay monthly. The minor differential in interest rates could easily been wiped out by an adverse move in the currency. Just something to think about if you have a strong view on Brexit economy.

So what is it now, appreciating or depreciating GBP? Make up your mind.

What you're talking about now is speculation though. Currency risk from loans usually refers to if the loan is in a different currency from your principal payment source.

[anbagt]

I think it is easier to just use a international transfer company. I hear WorldFirst are good? Anyway if big Corb gets elected then hopefully UK student debt will be wiped clean! Oioiiiiii!