Impact on Overseas Education Loan Borrowers during COVID-19


During mega-crisis times like COVID 19 pandemic, most people are under serious financial pressure when it comes to paying back any type of loan. Even with the 3-month moratorium for loan repayment offered by banks, the interest needs to be paid, and the same goes for education loans as well.

To take care of undue financial pressure when it comes to paying back education loans, experts say students should assess their current and near-future financial situation from the job and income point of view. To tackle the situation, borrowers depending on their financial status could explore options like a moratorium, rescheduling of tenure, etc.

Students who have already borrowed an overseas education loan and are studying:

For students who are currently studying and have taken education loans be it unsecured or secured overseas education loan, they just need to service the simple interest and not the full EMI per month. As this amount is significantly lower than the full EMI thus, it might not be a big challenge.

Students who have already borrowed an overseas education loan and have started working

On the other hand, students who have passed out and are presently working; the education loan repayment shouldn’t be an issue. However, students who are anticipating job loss or salary cuts, experts say they should find alternate paid internship and/or free-lance short or medium-term projects. They should also continue to up skill themselves through a lot of good quality online courses. Industry experts say they should continue to invest in building and nurturing their network.

Factors to consider while planning to study abroad post COVID-19

Interestingly, during most crisis situations whether because of recession or economic slowdown due to pandemic like COVID 19, the education sector sees more enrolments. People realize that it is the best time to take a break and up skill themselves as career growth is directly related to their company, industry and economy growth, hence, it. Similarly, for the freshers, spending time on campus during a slowdown is much better than passing out at the start of any down cycle of growth. So, this is a good time for students who are planning to complete their higher studies in the next two years or so. They are more likely to come out when the worst has passed.

As students, try to get into the best colleges that offer scholarships, grants, and on-campus job opportunities during the course. Students and parents should also get a loan sanctioned for the full costs. This approval can come in handy during tough times. Anyway, the interest is charged only on the amount disbursed. So, this can become an open option any time during the entire course.

To know how to get education loan for study abroad during these COVID 19 times, you can check for the already published articles or get in contact with the study abroad consultants.

Hope this article was informative.

Keep checking this page for more such articles.

All the best!

Learn more:

Overseas Education Loan: Common Mistakes to be avoided

Comments

  1. StevenHWicker17 December 2020 at 08:19

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