How to Avoid Collection Problems on My Student Loan if I Go Live in Another Country

You can avoid collection problems with your student loan while you’re in another country by signing up for an automatic electronic payment. This will automatically pay for the loan by debiting your account. If you end up living in another country, you can still pay your student loans, but pay attention to the exchange rate between currencies.

Instructions

Difficulty: Moderate

Things You’ll Need:

• credit card
• telephone

1. Notify your student loan creditor of any changes in your address and phone number. Make it easy for them to find you if something goes wrong.
2. Find out if the owner of your student loan offers automatic electronic payments. Most do and many offer breaks on interest charges if you sign up.
3. Sign up for automatic payments through a stateside bank.
4. Note the date that the automatic payment is deducted from your account.
5. Set a deadline for yourself at least two weeks in advance of the payment date if you are living overseas. Give the money plenty of time to transfer to your stateside bank.
6. Double check your transaction. Document your transaction and keep those receipts safe
7. .

Tips & Warnings

• If you absolutely cannot make payments while you are in another country, consider getting a forbearance. This keeps the loan from going into default.
• If you’re only going to be gone for a short time, see if you can deposit the entire amount in your account ahead of time.
• If you are living overseas, and need to pay, figure the exchange rate between foreign currency and U.S. dollars and deposit the proper amount. Don’t forget about fees and charges for transfer in your deposit.
• Defaulting on a loan is really hard on your credit rating and wallet.