UAE: Some expats move to Emirates to clear student loans taken in home countries
A number of expatriates chose to move to the UAE in order to handle their substantial student debt from their home countries that topped out at $120,000 for some individuals. Even though some students manage their loans through meticulous budgeting others benefit from higher salaries in the UAE which helps them pay off their debts more effectively.
James (name changed by request), a 29-year-old from Michigan, shared his perspective: Possessing student loan debt of nearly $120,000 would have caused me to spend my entire life paying it off if I had stayed in the US. I can both save money and live comfortably in this location. I feel like I’m managing very well.”
James determined that relocating to the UAE made sense financially after he analyzed living costs between the US and the Emirates. His tech industry job in the UAE enables him to pay off his loans while sustaining a decent living standard because of the higher salary.
Yasmine A. who is 27 years old and originally from the UK relocated to Dubai one year ago to achieve a specific objective. Yasmine explained that she relocated to pay off her $50,000 student loan. Yasmine originally intended to repay her debt while living in the UK but found that most of her earnings disappeared into loan payments.
She pointed out that the excessive cost of living created overwhelming management challenges. After Yasmine moved to the UAE she discovered the situation was easier to handle. I believed that relocating to the UAE would boost my earnings and enable me to pay off my debt faster. With some budgeting, it’s working,” she shared.
Student loans represent a major financial burden for many expats. Sarah T., who is 30 years old and lives in Canada, explored the possibility of completely ignoring her student loans. “I thought about ignoring it,” she admitted. “But I realised that would be irresponsible. Finishing my last year of loan payments feels like I’ve removed a heavy burden from my shoulders.
Living in Abu Dhabi as a finance professional Sarah learned how to manage her loan payments alongside maintaining her lifestyle. I make an effort to live according to my financial capacity while placing my money management first. The current sacrifices will lead to future financial security. I maintain my concentration by recalling my initial purpose which was to settle my loan after leaving my home and I must remain dedicated.
The former US President Biden cancelled student debt for 150,000 individuals on January 14 which increased the total number of loan forgiveness recipients to over five million. Experts advise newcomers to the workforce especially younger people to focus on financial literacy despite some temporary relief.
Dr Anya Patel, a financial expert emphasized that budget planning must include loan repayment and savings alongside lifestyle expenditures.
Dr Patel explained how financial advice can provide significant advantages. Taking the time to comprehend loan terms and researching refinancing options can alleviate financial pressure. Acting early on your debt management strategy proves essential before your debt reaches an overwhelming level.
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