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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Student loan cutbacks not expected to land on Trump’s desk this year

Republicans who were eager to impose new restrictions on federal student lending and loan forgiveness are likely to be stymied this year by Democrats. Photo credit: Shutterstock.com. No more PLUS loans for grad students! Public Service Loan Forgiveness to be eliminated! No more subsidized student loans! If you see some scary-looking headlines like these about legislation making its way through Congress in coming weeks, you can probably take them with a grain of salt. Republicans who were eager to impose new restrictions on federal student lending and loan forgiveness are likely…

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A student’s guide to taking and repaying an education loan

It’s easier and cheaper to get an education loan today than it was five years ago. This is largely because of the increased push by the central government to popularise such loans and greater competition among lenders following the entry of non-banking finance companies (NBFCs) into this space. Though better education loan availability is a plus, experts say borrowers need to carry out ‘due diligence’ that they would do before taking any other loan. These are the following steps that need to be considered. Several private institutes have education loan desks of…

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How Postponing Student Loan Payments Raises Costs

It may be better to pay at least a small amount towards student debt through income-based repayment programs than to choose forbearance and accrue capitalized interest. (SIphotography/Getty Images) Postponing payment on student loans can be tempting for many new graduates who feel cash-crunched, but doing so can lead to ballooning payments down the road. Borrowers can postpone their monthly loan payments with forbearance, but unpaid interest during forbearance still accrues and capitalizes. This means accrued interest is added to the principal, and the interest will be calculated based on the new, higher balance. “I went the…

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Education loan a boon, but interest rate a pinch: Students

BENGALURU: While education loans help many students pursue higher education in the country, they are seen as a burden when it comes to higher interest rates. Rajesh Bhatt, who is pursuing M Tech in highway technology at the governmentrun Sri Krishnarajendra Silver Jubilee Technological Institute, is still haunted by the burden of an educational loan he’d availed from a nationalised bank while studying his engineering degree, though he has been managing to pay it off. “Without taking a loan it is not possible to study engineering even at a government college.…

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Ministers under fire as student loan interest hits 6.3%

The rate rise affects students who started after 2012. Photograph: Alamy Ministers are facing renewed criticism over university funding after an increase in student loan borrowing costs using a “flawed” measure of inflation. The interest rate on loans for students in England, Wales and Northern Ireland will rise by up to 6.3% from September, up from the current 6.1% for anyone who started studying after 2012. The change is a consequence of the increase in the retail price index (RPI) for last month to 3.3% from 3.1% in March a…

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Are you paying education loan; here’s how you can avail tax benefit

Among many categories of debt, education loan is one of them which helps students to accomplish their studies either in India or in foreign country. With this financial support, provided at low-interest rates, youngsters have been facilitated by the government to pursue their dreams. Here are key benefits of education loan, as per PolicyBazaar. Anyone can opt for Education loan to study in India for graduate, post-graduate, professional and/or doctoral courses/degrees.  Loan cannot be assigned to the student alone, the parent or guardian needs to be co-signor for the loan.…

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Education loan defaults soar 47% on weak job market

HIGHLIGHTS A weak job market and wilful default by even those in well-paying jobs have hit the education loan portfolio of state-run banks. Non-performing assets soared by almost 47% between March 2015 and last March, data shared in Parliament showed. The problem is so acute for at least five lenders that the stock of bad loans has more than doubled. NEW DELHI: A weak job market and wilful default by even those in well-paying jobs have hit the education loan portfolio of state-run banks with non-performing assets soaring by almost…

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