You want to travel the world, but your student debt is holding you back. Fortunately, there’s a solution: You could teach English overseas. By teaching English abroad, you might be able to lower your cost of living and use your salary to pay down your student loans.
If you’re interested in teaching English abroad, here are five facts to know, including details such as what salary you might expect and how to simultaneously pay down your student loans:
- Not all teaching English abroad salaries are created equal
- You may face qualifications and startup costs
- It’s important to consider the cost of living while teaching English abroad
- You could potentially pay $0 on your student loans
- Teaching English overseas to pay off student debt is great, but not for everyone
There is demand for native English speakers to teach the language all over the world, but the amount of money you will earn depends on where you go, according to the International TEFL Academy, a teacher training program. Here’s what the program found:
- Foreign English teachers in Europe and Latin America can generally expect to earn enough to live comfortably, with money left over for travel and other interests. However, you may not be able to save a lot, so if you have large student loan balances, you may not want to teach in those regions.
- Expat English teachers in Asia can typically save between 30% and 50% of their monthly salaries after accounting for living expenses and basic travel and fun money. The amount of savings depends on the country. For example, you could save $200 to $300 per month in Thailand and $1,000 per month in South Korea.
- The Middle East is where you could find some of the highest teaching salaries, ranging from $1,500 to $4,000 per month, with benefits that include free housing, paid vacation and health insurance. However, the job market likely will be smaller and more competitive.
The types of teaching positions vary from program to program. Some English-speaking teachers who have teaching experience and/or expertise in another subject may land a job teaching native-English speakers at an international school. In most cases, however, you will be teaching English as a foreign language at a local school.
Even though there is a need for English-speaking teachers all over the world, it’s not enough to just show up in another country with a perfect command of your native tongue and expect to find a job.
You typically must take a TEFL (Teaching English as a Foreign Language) or TESOL (Teaching English to Speakers of Other Languages) certification course, which can cost up to $2,000, depending on which organization you choose for certification.
When choosing a course provider, consider the accreditation and training hours it offers. Most schools hiring English teachers seek candidates with accredited certifications and at least 100 to 120 hours of training. Some of the best courses offer lots of support by helping you gain practice-teaching experience, assisting with school placement abroad and providing other guidance.
In addition, unless you can commit to a teaching position in a very wealthy country, such as Saudi Arabia or the United Arab Emirates, you may have to cover the cost of your flight to your new home yourself. You will also need at least a month’s worth of spending money to last you until you receive your first paycheck, so careful planning and budgeting are in order.
The good news is that many of the countries where you can teach English abroad have a much lower cost of living than the United States.
In some places, for example, either public transportation or a bicycle will be all that you need to get around, saving you a car payment, car insurance, gas and maintenance expenses.
Rent and food will also cost far less in many English-teaching destinations, meaning your monthly paychecks will go much further, allowing you to pay down your student loan debt. Some of these countries will also allow you to join the national health insurance program, saving you more money.
Let’s look at how income and expenses stack up in three countries that are popular for those who want to teach English overseas:
- China: According to Go Overseas, an English teacher earns an average of $1,400 to $2,200 per month in China, with private institutions and international schools offering salaries between $2,800 and $4,300 per month. A typical apartment costs between $350 and $650 per month, but some schools provide free housing, as well as reimburse your flights to and from China. Depending on your setup, you could have a nice lifestyle and save over $1,000 each month.
- Costa Rica: English teachers in Costa Rica can expect to make a more modest $600 to $1,000 per month, according to teach-abroad website Go Overseas. Since an apartment in a large city like San Jose will cost between about $400 and $580, according to Numbeo, you might have to share lodging with others. With expenses eating up much of your salary, it’s likely you won’t end up saving much when teaching English here.
- United Arab Emirates: Salaries for English teachers in UAE clock in at a generous $3,500 to $5,500 per month, Go Overseas says. You’ll find wide variations in cost of living, but a one-bedroom apartment in Dubai could range from $1,000 to $1,600 per month, according to Numbeo. So while costs are relatively high, salaries are, too, meaning you can save a moderate amount of money if you live frugally in UAE while teaching English. Plus, you might be able to find a school that provides housing as part of your teaching English abroad salary.
Another great benefit of teaching English abroad is the fact that you pay no U.S. taxes on anything you earn under $107,600 as of 2020. In order to qualify for the Foreign Earned Income Exclusion, you must live outside the U.S. for 330 days over 12 consecutive months.
You will still owe local taxes on your wages, so the money you earn is not completely tax-free. However, you are likely to have a much lower tax burden by teaching abroad, allowing you to set aside even more money for your student loan payments.
If you’re living and earning your income abroad, you might even be able to lower your student loan payments to zero by opting for an income-driven repayment plan. There are several plans that tie the amount of your monthly repayment to your income, while also setting a timeline for repayment at 20 to 25 years, after which any remaining balance is forgiven.
These repayment plans usually use your adjusted gross income to estimate how much you owe per month. If you’ve been earning abroad, the adjusted gross income listed on your U.S. tax returns may be $0, which means the amount you’ll be asked to pay every month could also be $0, at least while you’re still living and working abroad.
That said, be aware that laws do change, and even under the current system, you’ll want to check with your servicer about your potential payments to avoid any surprises.
For some graduates, teaching English abroad is both an exciting adventure and a savvy financial move. But living abroad while paying off student loans is not for everyone.
Most who teach English overseas must still carefully budget their money to make sure they can cover their debts. And budgeting while abroad can feel constricting if friends and other expats are living and spending in vacation mode.
It’s important to remember that it can be psychologically challenging to immerse yourself in a completely different culture — and the cost of changing your mind is high. If you’re not sure, talk to people who’ve taught overseas to get a sense of whether it’s the right fit for you.
If you dream of traveling but are not sure about the demands of living abroad long term, it may be smarter to pay off your student loans at home and plan for travel once you’re debt-free. But if you feel up to the challenge, know that paying off your student loans while teaching English abroad can be a viable option.
Rebecca Safier and Katie Gustafson contributed to this report.
Interested in refinancing student loans?Here are the top 9 lenders of 2021!
|Lender||Variable APR||Eligible Degrees|
|1.88% – 6.15%1||Undergrad & Graduate|
|1.88% – 5.64%2||Undergrad & Graduate|
|2.50% – 6.85%3||Undergrad & Graduate|
|1.89% – 5.90%4||Undergrad & Graduate|
|2.25% – 6.39%5||Undergrad & Graduate|
|1.88% – 5.64%6||Undergrad & Graduate|
|1.90% – 5.25%7||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|2.13% – 5.25%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount
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2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Interest Rate Disclosure
Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.59% APR to 5.79% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.88% APR to 5.64% APR (excludes 0.25% Auto Pay discount). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 36% (the maximum allowable for these loans). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 2.04% and 5.8% to the one month LIBOR. Earnest rate ranges are current as of 6/8/2021, and are subject to change based on market conditions.
Auto Pay Discount Disclosure
You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay.
Student Loan Refinancing Loan Cost Examples
These examples provide estimates based on payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 5.89% APR would result in a total estimated payment amount of $17,042.39. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 20-year term (240 monthly payments of $72) and a 6.04% APR would result in a total estimated payment amount of $17,249.77. Your actual repayment terms may vary.Terms and Conditions apply. Visit https://www.earnest. com/terms-of-service, e-mail us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
Earnest Loans are made by Earnest Operations LLC or One American Bank, Member FDIC. Earnest Operations LLC, NMLS #1204917. 535 Mission St., Suite 1663, San Francisco, CA 94105. California Financing Law License 6054788. Visit earnest.com/licenses for a full list of licensed states. For California residents (Student Loan Refinance Only): Loans will be arranged or made pursuant to a California Financing Law License.
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3 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Jan 1, 2021 and may increase after consummation.
4 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
5 Important Disclosures for SoFi.
Fixed rates from 2.74% APR to 6.74% APR (with autopay). Variable rates from 2.25% APR to 6.39% APR (with autopay). All variable rates are based on the 1-month LIBOR and may increase after consummation if LIBOR increases; see more at SoFi.com/legal/#1. If approved for a loan your rate will depend on a variety of factors such as your credit profile, your application and your selected loan terms. Your rate will be within the ranges of rates listed above. Lowest rates reserved for the most creditworthy borrowers. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license #6054612; NMLS #1121636 (www.nmlsconsumeraccess.org). Additional terms and conditions apply; see SoFi.com/eligibility for details. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
6 Important Disclosures for Navient.
7 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 04/07/2021 student loan refinancing rates range from 1.90% APR – 5.25% Variable APR with AutoPay and 2.95% APR – 7.63% Fixed APR with AutoPay.
8 Important Disclosures for PenFed.
Annual Percentage Rate (APR) is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rates range from 2.89%-4.78% APR and Variable Rates range from 2.13%-5.25% APR. Both Fixed and Variable Rates will vary based on application terms, level of degree and presence of a co-signer. These rates are subject to additional terms and conditions and rates are subject to change at any time without notice. For Variable Rate student loans, the rate will never exceed 9.00% for 5 year and 8 year loans and 10.00% for 12 and 15 years loans (the maximum allowable for this loan). Minimum variable rate will be 2.00%. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.