US Visa Curbs Trigger Student Loan Worries

Banks fear drop in loans as Trump sharpens scrutiny of foreign students

- Gopika Gopakumar & Devina Sengupta

U.S. President Donald Trump administration's tough stance on international student visas is worrying lenders, as they are seeing a sharp fall in the number of customers opting for education loans to study in America. Disbursal of loan amounts may also get impacted if visas are cancelled or delayed, the banks warned.

"Banks have seen a 25% reduction in education loans to students applying to the U.S. and Canada last fiscal, and the growth in education loans will dip further now. More students are now looking at European colleges for admission," said a senior official at one of India's largest public sector banks.

The banks' warnings come on the back of the U.S. government directing its embassies to stop scheduling new interviews for international student visas. Earlier, the U.S. embassy in India has cautioned students that skipping classes or leaving the program without informing authorities will lead to visa revocation.