Consequences of not repaying education loan on time

837 votes

Hi,
What is your loan amount and security for the loan? Now a days every transaction of loan was recorded and tracked by credit beauros like CIBIL, Equifox etc. The will track your repayments and your credits . If you want to check your cibil score , please go through www.wishfin.com for free of charge. So better to maintain on time payments for your bright career.
Have a nice day. Good luck.

Advocate Syam Charan Godi LawRato

897 votes

Banks have a provision of a waiting period (technically known as moratorium) after which you start to pay off the principal and interest amounts of the educational loan. The moratorium period extends from one year after the completion of the course or six months after getting a job, whichever is earlier.

please visit the bank and give a request letter with a valid reason for delay. Banks will surely consider...

Now comes, how to deal with such a situation :

1.Student loan deferments:
Deferments allow the students to stop making payments for a certain period of time if the defaulter shows that there is economic hardship, returning to school, unemployment or looking for a job and did not get yet.
Based on the type of the loan, the deferment will allow the defaulter to stop paying the EMI for a certain period of time. A defaulter will often be able to defer the student loans if the defaulter meet one of the conditions described below:
- The borrower has died
- The borrower is suffering from a permanent total disability
- The borrower is suffering from a temporary total disability
- The borrower is enrolled in a rehabilitation program for his or her disability
- The borrower is unemployed
- Economic hardship
- The borrower is currently enrolled in a school
- The borrower enters uniformed service
- The borrower is teaching a needy population
- The borrower is performing community service
- The borrower is working in the health care service.
- The borrower is working in law enforcement
- The borrower went to a trade school
- The borrower was a victim of identity theft
- The borrower left school but never got a refund.

2.Student Loan Forbearance: A loan forbearance for a variety of reasons. It can generally be taken as the loan holder allows you to stop making payments for a set period of time. Anyways, the defaulter should not forget that the interest will continue to accrue during a forbearance, thus the loan balance shall be higher when the forbearance period shall be over.
The reasons for obtaining a forbearance can be poor health, unforeseen personal problems etc.

Advocate Rajesh Xavier LawRato