The Loan Landscape for International Students
The Loan Landscape for International Students
As someone who traded emerging market bonds for nearly twenty years before switching careers, I am particularly interested in seeing what happens to these loans in five to ten years. Lending at double digit rates in US dollars to emerging market countries and corporations has not ended well for many. In addition, to the powers of compounding working against the borrower, what happens if the borrower (student) earns local currency? With visas increasingly challenging, will international borrowers earn dollars or local currency? Over five to ten years will their local currency appreciate or depreciate agains the USD? Have we learned anything over the past decade about the dangers of student debt? And these were originated at lower rates to people who earn dollars. Will Goldman Sachs eagerly restructure their loans for international students if needed? One only needs to review emerging market restructurings to see how creditors play ball.....