Student Loan Debt Relief & Settlement Options
May 10, 2024 | Education Support Team
Education loans are meant to build futures, but high interest rates and a tough job market can turn them into a lifelong burden. If you're struggling to pay back your student loan, there are several paths to relief.
Moratorium and EMI Extensions
Most education loans come with a moratorium period (while studying + 6-12 months). If you still haven't found a job, you can apply for an extension of the moratorium or request the bank to extend the loan tenure to reduce EMI amounts.
Settle or Consolidate?
If you're in a chronic default state and have no way to pay the principal, settlement (OTS) is possible even for student loans. However, remember that student loans often have co-borrowers (like parents), whose credit scores will also be affected. Settlement should be handled through firm legal negotiation to ensure the best possible waiver.
Government Subsidy Schemes
Check if you're eligible for the CSIS (Central Sector Interest Subsidy) scheme, which provides interest waivers during the moratorium period for students from economically weaker sections. This can significantly reduce your total debt burden.
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