Unbelievable. Let's say a person took out an $80k student loan over the course of a few years about 10 years ago, when the dollar was, on average, about $1.46 to the pound. Let's say that same person is now paying the student loans back in pounds sterling.
The exchange rate at the close of play yesterday was £1 = $2.079. If that person paid back all of his student loans overnight, not factoring in interest (which is ridiculously low anyway), that person would make a PROFIT on his student loans of roughly $16,333. In other words, after paying back the borrowings, that person would have a theoretical $16k in the bank (if he hadn't spent it already).
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And like that, the light bulb turned on in little Sammys head, and everything he had ever been told about currency speculation suddenly made sense...
Ha, yeah - well I wasn't going to university as a covert way of getting involved in currency arbitrage...
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