Hello,
I currently live in the US. I hopefully will move to Japan in the next five years. I had a thought that came up while I noticed JPY to the USD is significantly lower than it used to be last year.
Theoretically, let’s say I work for an American company in Japan and receive Yen as my salary payment. I also have American student loans that I have to pay for in USD. All of the sudden, Yen is not as valuable as it used to compared to USD. That would technically make my loans more expensive. There’s a problem there right? Am I thinking about this wrong? I tried researching and I’m not exactly finding my answer.
Which brings me to my next question, has anyone ever heard of refinancing student loans from one country to Japan? I’m thinking that would be the only solution if even possible. I really hadn’t thought about this until today and now I’m thinking I could never move to Japan since my loans will take a second to pay for.
2 comments
I would probably pay those loans off in the US first or wait for the yen to go back up. But even so, salaries are not as high In Japan even when the yen is stronger.
It is not a thing to just switch your loan amount into a different currency.
>All of the sudden
All of a sudden*.
>Yen is not as valuable as it used to compared to USD. That would technically make my loans more expensive.
Yes, the loans will cost you more to pay off. If you have saving in USD, then use those to pay the loans. JPY/USD will probably balance back out in a couple years, if you can cover that space. Even with a better exchange rate, you lose a fair bit to forex overhead, so keep that in mind as well.