What Happens if You Don’t Pay Your Education Loan

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.

Education 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.

Comments

  1. says

    Dear Sir,
    Pls advice there is any procedure for issue RC against Education loan?or can any bank issue RC against education laon if the student has not able to get job for repay the laon and his family condition is so bad.if a student unable to repay the education loan within time then bank can issue the RC against him.
    Pls get this and and kindly advice for this issue.
    Awaiting for your Immediate Reply.

    Thanks and Best Regards

    Vikash Jaiswal
    Delhi,India

    • Indianist says

      Vishal,

      I don’t get the term RC, what do you mean by that? Anyways, as given in detail above you can explain the situation to bank officials or authorities that you haven’t got a job to repay your education loan. They’ll understand your situation if it is genuine. Instead of keeping the reason to yourself, it is better to explain it to the bank. They’ll give you time to repay the loan. However, they will not wave-off the loan for any reason but can only extend the duration. It all depends on your genuineness and rest lies with the bank.

      Thanks

    • says

      Dear sir,

      Thanks alot for ur promt kind reply to me.
      RC: i dont know exact fullform of this but i can explain meaning of this .it means when any body dont pay loan within time then bank issue a RC and send this RC to related Tehsil then that tehsil have to recover that loan by force,they can take help of police and can force to sell home,field etc.

      so kindly advice can any bank issue RC against education laon if the student has not able to get job for repay the laon and his family condition is so bad.if a student unable to repay the education loan within time then bank can issue the RC against him.

      Pls get this and and kindly advice for this issue.
      Awaiting for your Immediate Reply.

      Thanks and Best Regards

      Vikash Jaiswal
      Delhi,India

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