If you are here looking for a way out of education loan, here are the things you can do to make your life easier.
- Do not default on your education loan
This is the primary thing to remember. Defaulting on your education loan might seem like a good idea if you have been paying the incessant EMIs without seeming to chip off at the outstanding balance. A bank declares a loan EMI as a non-performing asset when the installment has been due for 90 days. The number of defaulters has increased multiple-fold in the recent years. It will not only ruin your credentials but also jeopardize the credit rating of your family.
- Build a repayment strategy
One year after you finish your education or a period of six months after getting a job you will be liable to start paying the EMIs. It is in your best interest to have a strategy put in place, and preferably some extra cash by working part time or full time in some job other than your field of expertise if necessary.
- Apply to a Trust Deed
For debt help Scotland has a provision of entering trust deeds where you can sign off your assets to an administrator to the benefit of your borrowers while you work to pay off the debt you accumulated. It comes with a minimum four-year tenure to give you enough time to pay off a significant chunk of your debt. If the agreed amount takes a longer time to depose, the deed tenure can be increased.
- Look for provisions
Students get many relaxations that can help them pay off student debt in a smoother manner. Women are eligible for 0.5 percent concession on their loans. There are also many schemes for well performing, meritorious students, differently abled and economically weak students as well.