All About Education Loans

The pandemic posed an issue with the securing and repayment of education loans. Navneet Dubey suggests ways you can apply for a student loan or repay one

- Navneet Dubey

The coronavirus pandemic has hit just about everyone in some way or the other. People have suffered pay cuts, many have been furloughed, and countless more left unemployed. This has happened because the bottom lines of many companies have taken a beating since March this year. Due to this, household incomes have been thrown into disarray, which has especially affected those repaying loans. All kinds of borrowers are in trouble now. For students and recent graduates, repayment of education loans has become a problem, because hiring has almost come to a standstill. If you are finding it difficult to manage the repayment of your education loan, here is what you should do.

FOR EXISTING EDUCATION LOAN BORROWERS

If you’re someone who is already servicing an education loan, and are now finding it difficult to repay it, the first thing you should do is contact your lender, and ask them if your loan can be restructured. In August 2020, the Reserve Bank of India (RBI) allowed a one-time restructuring of loans without classifying them as Non-Performing Assets (NPAs) to help companies and individuals manage the financial stress caused by the COVID-19 pandemic.