US College Student Studying in London Sees Similar Opportunity as Forex Trader – Bloomberg

The unexpected fall in the British pound has created winners and losers in the higher education sector.

The pound hit a record low against the dollar this week. The UK government last weekend included the biggest tax cuts since 1972Triggered by the launch of economic measures, the pound has immediately extended its decline. The Bank of England (British Central Bank) will buy as many long-term government bonds as it needs on the emerged.

Hundreds of thousands of international students attend British universities each year, and student loans are often used to cover costs. The recent devaluation of the pound is great news for those paying off their loans in dollars. On the other hand, it’s a tough story for those who already have a job and are paid in pounds.

Rebecca Lammers, 37, from Ohio, took out a federal student loan in 2007 to study in London and is now staying there to work in the music industry. The money to pay off the student loan in one lump sum is set aside in pounds. The pound has fallen about 16% against the dollar since the start of the coronavirus pandemic, hitting a one-time low of $1.0350.

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