How Do I Make My UK Student Loan Payment With U.S. Dollars?

Question:

Dear Jon,

I’m a U.S. citizen who was enrolled in a university in the UK online for a semester. I had to drop out for financial reasons, but I still owe the one semester’s tuition.

How do exchange rates affect paying back a debt in the UK if I’m a US citizen and was while the debt was incurred. I am trying to set up a payment plan, but the contact person I’m dealing with is not being very helpful regarding exchange rates. Does my payment fluctuate based on the changing rates, or is it based on the exchange rate when I incurred the debt or when I set up the plan?

Tricia

Answer:

Tricia,

I am a bit unsure what your question is, but I’ll try to help.

What you owe for the tuition, and the exchange rates between USD and GBP are two different things.

The amount you owe, I would think would be in GBP (Pounds), and if you are paying it back using Dollars, you would just have to exchange enough Dollars to pay the agreed monthly payment or total amount owed.

If the tuition was expressed to you as USD/Dollars then that may make it a different situation.

How was the tuition stated to you, in Pounds or Dollars?

How much in total do you owe?

Again, for most debts that were initiated in the UK, regardless of where you lived and were, would be owed in Pounds. The exchange rates have no bearing on the amount owed or payments.

Any additional information you can provide will help as well. Just post your answers in the comments below.

Regards,

Jon

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.


Damon Day - Pro Debt Coach

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