Student Loan (for US schools): Get in the US or Japan?

[crew]

Perhaps this topic is against the ethos of Retire Japan but I need to take out a loan to study in the US. US banks seem to be easier to navigate but are a few interest percentage higher than Japanese ones, but Japanese banks gonna Japan and ask me to sign a million documents just to get to stage 2. Any advantages from either? I am not an American citizen.

Also, for Japanese banks, some don't seem to distinguish "student loans" from any other kind of loan. Is there something I should look into that are beneficial only if it is a student loan other than the interest?

Comments on talking me out of grad school also welcome, LOL.

[captainspoke]

Any chance of an assistantship, stipend, grants, etc?

[TJKansai]

A Japanese yen loan would mean you would have foreign exchange risk.

I would be surprised if a Japanese bank would make an educational loan, especially to a non-Japanese (I am assuming you aren't) to study in another country, but I may be wrong. If you have assets here then perhaps.

[beanhead]

Comments on talking me out of grad school also welcome, LOL.

Try and do it while working, if you can. It is really tough, and may be impossible depending on your family situation, but well worth thinking about.
The opportunity cost of 1 or 2 years not working needs to be added to your calculation of the costs of the Masters (I guess) programme.
And carefully research the ROI of the particular degree or university you are considering.

[RetireJapan]

Try and do it while working, if you can.

This is good advice. I got my second MA as a distance student while working full time, and it was very tough but better financially in the end than the more pleasant take a year or two off to do it in person. Especially at the moment with Covid still hanging over everything.

[crew]

Comments on talking me out of grad school also welcome, LOL.

Try and do it while working, if you can. It is really tough, and may be impossible depending on your family situation, but well worth thinking about.
The opportunity cost of 1 or 2 years not working needs to be added to your calculation of the costs of the Masters (I guess) programme.
And carefully research the ROI of the particular degree or university you are considering.

Trying really hard to convince work to let me do this! This might make or break it actually.

[crew]

A Japanese yen loan would mean you would have foreign exchange risk.

I would be surprised if a Japanese bank would make an educational loan, especially to a non-Japanese (I am assuming you aren't) to study in another country, but I may be wrong. If you have assets here then perhaps.

There are quite a few ryuugaku loans out there, with better rates than the US. I should have mentioned that I have PR status. About forex risk, I didn't think about that but isn't it a factor if I get a US loan and not a Japanese loan? I earn in Yen, and my savings are mostly in Yen.

[TokyoWart]

One consideration is that in the US student loans, even private loans, have an unusual treatment in bankruptcy courts and it is nearly impossible to have that kind of debt discharged. I don't know what status student loans have in Japan but it's hard to imagine they could have a worse status than they do in the US.

https://upsolve.org/learn/private-student-loans/

[crew]

One consideration is that in the US student loans, even private loans, have an unusual treatment in bankruptcy courts and it is nearly impossible to have that kind of debt discharged. I don't know what status student loans have in Japan but it's hard to imagine they could have a worse status than they do in the US.

https://upsolve.org/learn/private-student-loans/

Wow this is great information. Yes I should have mentioned that it will be a private loan as I am not eligible for federal loans.

[Tkydon]

Yes, American Student Loan Terms are very onerous. There is even talk that the current level of US student loan debt poses the next economic threat in the US.
They are the only liabilities that you can never get out of, even by declaring bankruptcy. So they may follow you and your decendants around, similar to indentured servitude. If I were you, I'd avoid them.