An education loan is taken on hopes and confidence of repaying it by getting a job soon after your college or insurance or other methods of your personal choice. However, this question may arise – what happens if you don’t pay your education loan within the given period of time. Get down for the detailed report of what happens on unpaid student loan.
What happens if you don’t Pay your Education Loan
The actions on you for not paying back the education loan is quite similar to the other types of loan non-payments. Police action, court action, passport freezing etc. and all such actions can be taken by the bank. Further, the bank can even approach your working place or company to repay the education loans.
What if you don’t get a job?
If a person who has completed his or her college on an education loan doesn’t get a job, the person can approach the bank and detail the situation to the bank officials with which they can extend the repayment duration of your loan. So, it is not possible to make false reasons to prolong the time with unconfirmed reasons.
Loan for Higher Education!
If you have completed your bachelor’s degree and wish to pursue your master’s degree (higher education), you can still avail additional education loans. This is applicable for all courses.
Insurance is a Must
If a student who has applied for an educational loan doesn’t have insurance, the bank would advise you to take insurance. This is because if any misfortune happens to the student during the course of his education, the bank will be able to claim the loan amount from the insurance amount.
It is better to have knowledge about what happens if you don’t pay your education loan as it would benefit you to prepare yourself by whatever means that is possible to you. Don’t get discouraged by knowing the impacts but this is just the information one must know while applying for an education loan.