Expat Life, Life, Studying Abroad

A Lesson In Exchange Rates

I recently had a bit of a financial heart attack. For a couple of hours I feared for my future and cursed my country and questioned the point of student finance when it doesn’t even finance my studies. See, the exchange rate between the Norwegian Krone and the British Pound  went from about 9,50 kroner to the pound to 11,50 kroner to the pound in a year and a half. Then, on december 16th 2014 (couldn’t find an English source for this, only Norwegian ones, but here is a translated version)  we had a massive drop that has since then only kept dropping, putting the Norwegian Krone at an all time low. One pound costs 25,5% more Krone than it did just a year ago.The Krone has dropped from 11.50 to 13 kroner to the pound in the last 6 months alone.The exchange rate has never been this bad, and because the Norwegian oil fund is less worth by the day it keeps falling.

giphy
Adult life is hard

I pay an international student turition fee and because international tuition fees (the fact that I don’t get to pay EU fees when we’re a part of the EEA because a former Norwegian government threw away students rights during trade negotiations is an entire rant on it’s own) at English universities are usually horrendously high my tuition fees have skyrocketed. A year ago I would have payed 50 000 NOK less in tution fees than I have to now, soley because of the exchange rate. 50 000 NOK is a lot of money. I could travel the world for 50 000 NOK. Or get three return flights to Australia. Or go on a luxury 3 week holiday. Or go to Vietnam on a 12 day Contiki experience… twice.

It is therefore also unfortunate that these 50 000 kroner is what I have to cover myself because  Lånekassen (Literally BorrowBox, the Norwegian student Finance system) doesn’t cover it. They have a maximum loan sum you see, and though I would have stayed well below it had the exchange rate stayed stable, I am now well above it, though the british GBP sum hasn’t changed. GAAAAAAAH FRUSTRATION. This means that I probably won’t be able to travel as much as I was hoping to because the money I make from my part-time job and three months of work during the summer will go straight to try and cover my expenses.

gilmore-girls-gif-3
Lånekassen to every student currently abroad struggling With finances

Life threw me a bit of a curveball here because of the world economy changing (which is interesting, but also terrifying)  and I’m not happy about losing my travel money, but I have now resigned myself to the fact that there is nothing I can do about the situation. Zilch. I will just have to accept that most of my Norwegian maintanence loan will go into the tuition fees account instead of my rent, get a part-time job and make it work. I’m not able to make lemonade out of this situation, but I can at least bite the sour lemon and try to make the best of it. And I’m sure learning a lot about exchange rates and how to speculate in money.

Let’s pray the exhange rates improve over the next month, or at the very least that they don’t get any worse.

Love,
#FrustratedCat  Xxx

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5 thoughts on “A Lesson In Exchange Rates”

  1. I hear you… a year and a half ago the Canadian dollar was 1.60 to a pound, now it’s 2.06 for a pound. All the money I’ve saved for school next year is in Canadian dollars and it’s also at an all-time low. I’m just PRAYING that in the next year the Canadian dollar goes up before I need to exchange it for tuition… I’m sorry the same thing has happened to you! So frustrating!!!

    Liked by 1 person

    1. I think it’s a problem everywhere, particularly because the pound is just getting stronger. We can only hope for the best! I’m cross my fingers for you😊x

      Liked by 1 person

  2. Does…sorry, it’s a bit off tangent, but I’d be interested to know…does the Norwegian state pay tuition (I mean if you stay in Norway, of course)? As you know, tuition is very expensive in the UK, and I was just wondering…how Norwegian students are cared for…

    Like

    1. University of completely free in Norway which is grand, but living costs are so high that the maintanence loans from the government doesn’t even cover basic rent and students in Norway have to rely on help from their parents (or in most cases) work a 50-100 percent job next to their fulltime studies to pay for food and bills and such 😊 but the unis are free, which makes the sting of having to pay so much in tuition fees because of the exchange rate hurt just a little bit more haha x

      Liked by 1 person

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