wisof-
in same situation but havent applied for a loan yet.....

personally i think the exchange rate bottomed out from post 911 and iraq and the dollar is getting a bit stronger the last few months. the 1.5% on say 18,000 usd isnt really that much. does the interest rate for the loan begin when you get the money? thats probably also more important.

i think the other thing to condiser is that if you dont have a bank account in the uk, its really tough to get and it isnt going to happen for months [i have one from when i previously lived there] a scotish friend of mine returned last fall to the uk and it took her 3 months to get one -- her canadian husband couldnt get one and used his us accounts. somehow the brits tightened the banking system up for security reasons.

having lived in london for 4 years you just adjust - dont think of the conversion. the uk pound is really out of line compared to the other eu countries [hence the reason uk doesnt go euro] i would be more afraid of an re-alignment of the uk pound with the euro and the impact on cost of living there.

id go installments. i think if your only looking at $-pound you will be better off and if the interest starts when you get it, you then will really be better off.

wisof,

have you found any good cheap sources for wire transfers [exchange rate]

my bank charges $20 but as with all credit cards the mark up the exchange rate 3%.....

my bank charges a flat $38 . . . just transfered my tuition deposit today!!!! WOOOHOO! Never felt so good to drop that much hard earned $$$.

Good points TED. Here is a thought though . . . lets say interest starts on the loan as soon as my first (or only) disbursment is released. I wonder if I eventually get it into a British savings account, if the interest accrued in British Pounds would be more than the US interest gaining on the loan? This I need to figure out. I have been on the fence about installments, but I think you are right. I ended up paying roughly $200 less than my friend for the same tuition deposit he paid about a week ago. I obviously have some more thinking to do, but installments seem to be a better deal as the dollar has been getting stronger, if only a tiny miniscule bit.

thats an easy one....interest is never more than 3% on the best of savings [short term] and the loan ....lots more.

i sent the same transfer sum also....waiting to hear from my bank what the $$$ was. the number has yet to post on my account. if they screw me then i will quickly find another way of sending it. perhaps i should send it to you first. at least your friend should.

my question would be do you need to get all the money from the loan straight away or if you applied for the full funds you need for the year can the loan company hold off in sending it across and charge you only when you get the money? i havent applied for a loan yet -- if i get i bursay i might not but will decide later in july or may apply in december. that prepaid tuitition amounts in a savings of +/-$1500 so i have to decide on what to do on that. i have never gotten a student loan before so i dont know the details only with other types of loans such as home equity, your interest begins when you get the money.

dear ted,
not to change the subject but, i have a couple of thousand in euro-dollar futures {it is either horses or this !) }. today the dollar hit the lowest against euro in a mounth after hitting some highs following EU constutition referandums. do you have any comments on this flactuation? it might totally be outside of your interest marketwise.

euro:dollar




brit pound:dollar 1 year



brit pound: dollare 88-05

if i was a betting person [i do buy my mega millions once a week] i would say the value of the dollar is on the rise [so it will continue to bottom out] --

the previous big shifts were because of war [as this one] and now i think the world is comfortable with the war the us created. however

--bush cant keep a handle on inflation. bad for dollar
--if bush continues his 'crusades' with iran or korea -- forget the dollar [buy russian ruble futures then]
--i think the brits in particular have a vision for thier economy; green, kyoto industrial growth, lots of new hospitals etc. very optimistic. strong for the pound.

i lived in london 89-94 and was paid in dollars - and lived to tell the story - one just deals with it.

i recently saw mark taylor speak [moments of connection]. he said he felt the economy shifts will be more gradual in the future as the world gets more connected there are less dependence on just one thing to effect the market. hope he was right.

wisof;

my banker just rang; exchange rate given was 1.82 $$/pound +$20 fee. quoted wall street journal rate was 1.78 i think +3%

Ted,
Well currently, the school is asking me HOW I want the money. So it is possible to do it in installments. Is the question then, when is the money exchanged into GBP, when the loan begins, or when it is distrubuted in installments?

i.e. if I chose to get my loan in installments, and somehow I get the loan to be deposited into a British account, will the exchange happen at the time of the next installment? Or just when the loan starts . . .

Also, does interest on the loan begin when the loan begins or when the payment is distributed?

These are questions for Sallie Mae. I will call them tomorrow and see if I can get an answer to such things.

The amount for the transfer was taken out of my savings account so fast I could hardly believe it. It was almost scary how fast that much money left.

When should we expect to hear back for the bursary ;-) Dunno if I can wait till the end of July!

As far as the rate goes . . . the future is very uncertain here in the US. While I agree that trends show the dollar is gaining, I am unfortunately pessimistic on this subject. Which makes me think twice about doing it installments. TED, you mention some good reasons to be pessimistic!

wisof --

some natter on 'yanks getting uk bank accounts!!' got to love those brits....

if you work in uk and get paid in pounds the last year your there you get your PAYE taxes back. well when i left, mr. billingsworth hand wrote me a note with hand calcs on how much i was owed. lovely.

and for your us taxes [this year] file an extension dont file until you have i think 186 or so days[cant remember exactly] in uk -- there is some magic you play with money here and i think you will be able to make [this year] up to $80k us tax free--talk to an accountant before you go. its a bit complicated but is a nice unanticipated surprise.

thankyou TED, i appriciate.

wisof when i spoke to the loan gurues they said approval in 2 weeks of applying so i am not in any hurry --

only i think the aa shuts down come august so july is the time to get it sorted.

assuming i finish fix'n my house and rent it out while i am away, all the rental income i get is tax free up to that magic 80K. expats have lots of tax breaks.

wisof-

are you prepaying? you break even if the exchange goes to 1.67 i think.....what about the fee protection scheme - think i will skip that for 120 pds.