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 28th.it 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.
“For me, it’s still $2 a pound, because that’s what it was when I got here, but I have to change that,” Lammers said.
A weaker pound, on the other hand, will save money, especially for overseas students who pay in dollars. In the UK, postgraduate tuition can run up to £30,000 ($47,000) per year. Besides that, there are the costs of books and other necessary payments.
The recent pound/dollar move is a pleasant surprise for Alexandra Taysan, 25. Taysan, who hails from Washington, DC, learned the pound hit a low against the dollar on the same day in a text message from his father . This was the first day of his master’s course at the London School of Economics (LSE), and Taysan decided not to miss the opportunity by transferring extra money from the United States to the United Kingdom to pay for his rent.
His roommate, Marie Coeur, 22, from Luxembourg, also handed over euro-denominated money on the same day. “When I saw the depreciation of the pound, I immediately contacted my bank and asked for the exchange rate,” he said.
Original title:American Students in London Become Accidental Money Traders (1) (抜粋）)