Education Loan tips to sail through this economic slowdown

During mega-crisis times like COVID 19 pandemic, most people are under serious financial pressure when it comes to paying back any type of loan. Even with the 3-month moratorium for loan repayment offered by banks, the interest needs to be paid, and the same goes for education loans. To take care of undue financial pressure when it comes to paying back education loans, experts say students should assess their current and near-future financial situation from the job and income point of view. Prashant A. Bhonsle, CEO, Student Loans and Head…

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Student Loan Forgiveness For All? 5 Important Questions

Sen. Bernie Sanders (Photo by Jeff J Mitchell/Getty Images) GETTY IMAGES Student loan forgiveness is a hot topic on both sides of the political aisle. These five important questions are on the minds of many. Here’s what you need to know. Student Loan Forgiveness: Sanders and Warren As the race for president heats up, Sen. Bernie Sanders (I-VT) and Sen. Elizabeth Warren (D-MA), who are both 2020 presidential candidates, have shared competing visions for student loan debt forgiveness. The latest student loan debt statistics show that more than 44 million borrowers collectively…

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Education Dept. Unveils Fix For Student Loan Program’s ‘Bureaucratic Nightmare’

Public servants with student loans were furious, and the U.S. Department of Education heard them. The department revealed Thursday that it will simplify the process for borrowers to apply for an expansion of the troubled Public Service Loan Forgiveness (PSLF) Program. The move comes after a damning Government Accountability Office review, first reported by NPR. In that 2019 review, the federal watchdog found that during the expansion program’s first year, the department turned away 99% of applicants. The change — which the department posted to the Federal Register without a news release or other public announcement…

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HDFC to acquire remaining stake in education loan subsidiary for ₹395 crore

MUMBAI : Mortgage lender Housing Development Finance Corp (HDFC) on Monday said it plans to acquire the remaining 9.12% stake in its higher education financing subsidiary HDFC Credila Financial Services Private Limited (HDFC Credila) for up to ₹395 crore. “We wish to inform you that the Corporation is proposing to acquire 1,14,70,000 equity shares of Rs. 10 each of HDFC Credila Financial Services Private Limited (HDFC Credila), a subsidiary of the Corporation, representing 9.12% of the equity share capital of HDFC Credila on a fully diluted basis, from its other promoters Ajay Bohora and…

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Education loan: Income tax benefits, moratorium period, lower interest rates for IIMs and IITs

New Delhi: The cost of education is rising rapidly, especially, if you are considering to study at a reputed institute. Quality education is a must for a complete and successful life. In order to provide best possible education, parents consider to make an investment in mutual funds (MFs), fixed deposits (FDs), unit-linked insurance plans (ULIPs), etc., for the long term horizon. With the rising cost of education, there could be instances where one may fall short of funds. In such a situation, an education loan comes to rescue. It helps to…

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Digit wants to help you pay off your student loans faster

Digit, the automated savings app, wants to help borrowers repay their $1.5 trillion in student loan debt faster. Student Loan Payments, the app’s latest tool, allows users to allocate some of their automated savings to make extra payments on top of the user’s standard monthly bill. It works like this: If you have a Digit account, create a student loan goal and connect your loan account to the app. If you already have a student loan goal with Digit, you can change the settings to enable additional payments. The app…

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Defaulting on education loan? Here are the ways to prevent it

Here are some of the measures to help you prevent a default on the loan Along with medical costs, the education cost in India has been on the rise over the years, both for secondary education and higher education. People generally take a loan to finance it. However, maintaining a loan is not always easy. For instance, similar to other types of loans, defaulting on an education loan ruins your credit score. The credit score effect is not only limited to the student, but even the parent or guarantor, who…

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Education loan not enough? Take a top-up loan

The sanctioning of an additional loan or a top-up loan depends on the bank’s policies. The value of India’s currency is continuously falling and between January to September 2018, the value of rupee has declined by 12 per cent. The depreciation of the rupee against the dollar has affected a large number of people especially who have expenses in foreign currency. People who plan on sending their children abroad for studies, or people whose wards are already studying overseas, are the ones who are hit particularly hard. People generally take…

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Seeking subsidised education loan? Check important details

As the cost of education has increased manifold in the last few years, getting an education loan has become a compulsion for those coming from the Middle Class and economically weaker sections of the society. However, getting an education loan is not an easy task. More difficult is to get the benefit of the subsidised education loan facility provided by the government. The single reason for this is the fact that not all are eligible for subsidised education loan facility provided by the government. As per the Union HRD Ministry’s…

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Have a question on loans? This may help you

> I plan to take a loan for my son’s higher education. Do I have to pay EMI from the day I get it? – Gaurav Singh No, in an education loan the EMI essentially starts after completion of the course. In the interim period, you may clear the interest component, every month. In this period, the interest applied is simple interest and not compounded. > I want to invest some money in stocks. Can I take a bank loan to invest? —KS Sujan As an advisor, I would discourage…

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