New Delhi | Mumbai: India’s business schools want banks to extend student debt repayment schedules by six months or more, beyond the inbuilt moratorium that most lenders offer for these loans. But senior bankers with some state-owned lenders believe students are already being offered adequate moratorium and an extension is not needed. The Indian Institutes of Management anticipate delays in onboarding of students graduating this year, and don’t rule out problems for the class graduating in 2021 as well. The first instalment for graduates with student loans for the class of 2020 will be due in December. Most banks have an in-built moratorium clause in their student loans — the extension is usually for six months or one year from the date of completion of the course. IIMs’ two-year courses for the class graduating in 2020 cost between ₹9 lakh and ₹22 lakh. Speaking off record, senior officials from some public sector banks said that already enough … [Read more...] about IIMs want banks to go easy on student loans
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NEW DELHI: For long, parents have been saving for the primary and secondary education of their children, as well as any higher studies. The past 10-15 years have seen a change with more students willing to take on the responsibility to fund their education, and this is where student loans play an important role. Walnut App CEO and Co-Founder Patanjali Somayaji lists five essentials to keep in mind when taking a student/education loan. 1. Be clear on the reason for taking a student loanSpend some time to think about your goals and employment prospects and how your chosen course or degree can help you attain those goals. Check your eligibility criteria and compare course fees, facilities and benefits across colleges and universities. Confirm your financial situation and how much liability you are willing to take on. 2. Potential job opportunitiesAre you availing a student loan right after graduation or have you worked for a few years and are now looking to better your job prospects … [Read more...] about Planning a student loan? 5 essentials to keep in mind
But the legislation did not create any reprieve for the millions who received a government-backed Federal Family Education Loan (FFEL) from a private lender, or a Perkins Loan through their learning institution. Participants in these programs have a collective outstanding balance of $263.1 billion, a relatively small slice of the $1.6 trillion-plus national student-debt pie. Still, they represent millions of individual borrowers. … [Read more...] about A Pandemic Is Raging. Some Student Loan Payments Are Still Due
But even though the cost of tuition is rising, borrowing more money to bridge the gap can become problematic. “Increases in student borrowing and default rates raise concerns that some students may be borrowing too much,” according to a new paper from NBER, which takes a look at student-loan debt and instances of student-loan-debt default in an effort to uncover the best approach to repayment for both borrower and lender. … [Read more...] about Is There a Better Way to Deal With Student-Loan Debt?
Almost 9 per cent of education loans disbursed by banks have turned into non-performing assets (NPAs), according to a study by credit bureau TransUnion CIBIL. But small-ticket education loans, upto Rs 4 lakh generally borrowed for studying in middle-ranked institutes, are prone to turning bad compared to large-sized loans upto Rs 15 lakh, probably reflecting inadequate job opportunities in this segment. The latest TransUnion CIBIL Market Insights Report on Education Loans captures an emerging trend of sharper deterioration in small-ticket loans (below Rs 4 lakh). However, the delinquency rate for education loans above the ticket size of Rs 15 lakh have remained stable. These findings may have implications for lenders, some of whom largely focus on small-ticket education loans. Of the Rs 77,000 crore lent as education loans through 28 lakh accounts, nearly Rs 7,000 crore from 3.5 lakh accounts have turned bad.But from 2012, the default rates on big-ticket loans have remained steady … [Read more...] about Small student loans prone to turn sticky