Student Loan - Loans and Debt Consolidation

FIND YOUR WAY OUT OF A STUDENT LOAN DEFAULT ECONOMIC TIMES

Ravi Krishnan name changed was very happy when he secured admission for an MBA programme in a reputed institute two years ago. He was pleasantly surprised when a bank provided an easy student loan as part of its campus lending programme.

However, what he and his batchmates had not imagined was they would almost default on these loans. Just as they were completing their course, the global economic crisis was looming large on the campus recruitment drive. There were offers, but the fancy salaries were not coming their way. The salary was just about enough to make ends meet. They couldnt start repaying the bank immediately as per the loan repayment schedule.

The story will explain the reason behind rising defaults in student loans.We have seen students studying in second-rung B-schools, which do not offer quality placements, struggling to service loans when they do not have any source of income explains VN Kulkarni, chief counsellor with the Bank of India-backed Abhay Credit Counselling Centre. The same is the case with students who discover much later that their institute is not recognised by the All India Council for Technical Education AICTE. They are left in the lurch with slim chances of securing employment.

RISING DEFAULTS

APPROACH THE BANK

Source: http://economictimes.indiatimes.com