Unable to pay education loan
Manikandan
(Querist) 10 July 2014
This query is : Resolved
i have taken educational loan for my engineering for Rs 6 lakhs in 2006. i completed my engineering in 2010 and i was not able to get a proper job. so i couldn't pay the interest.. so far i have paid 1.85 lakhs as interest. so including interest i have a due amount of Rs 8 lakhs now. The major problem is my dad has transactions in the same bank for his business and agriculture, for that also he has taken loan which also has some interest to be paid..Now the bank has grouped it together; the education loan, business and agriculture loan which comes around 14 lakhs. now i have got a notice from the bank saying that they have taken sarfaesi act and the property documents which i have submitted cannot be claimed and also they have released this notice in the news paper.it's too frightening to my family..my dad has communicated to the manager , he says that the amount should be paid as one settlement which is not possible for him. my dad said he is ready to pay the business and agriculture loan amount but they are not accepting and in turn they are saying the educational loan must be paid first. now i just want a solution for this. i am ready to pay the amount once i get a job which am trying abroad but i need some time like 2 years.. is it possible to delay the payment ? if so can u tell me the possibilities.. some known lawyers here in my place said some ideas like we can get a stay order from the court but i don't know what will be the further circumstances.. please write to me for the solution. thank you...
Kuummaar AS
(Expert) 10 July 2014
It is better to pay amount due to the Bank, which is an institution and can afford various actions against you and your father, may be it wins or loses.
Rajendra K Goyal
(Expert) 11 July 2014
Loan was given for education and was not a guarantee from the Bank that you would get job of your choice. You have defaulted your commitment, either repay the outstanding, take Banker in confidence or face the music.
ajay sethi
(Expert) 11 July 2014
make an application to bank for rescheduling loan . to reduce EMI on loan .
V R SHROFF
(Expert) 11 July 2014
PAY WHATEVER POSSIBLE.
BE IN CONTACT WITH BANK.. BEG THEIR MERCY..
Raj Kumar Makkad
(Expert) 12 July 2014
Invoke One Time settlement which may definitely reduce your liability of interest as well as of some penalties.
Advocate. Arunagiri
(Expert) 12 July 2014
Action under Sarfaesi Act to recover a educational loan is illegal. they can not club educational loan with any other loan of your father.
Approach the DRT for staying the further proceedings of the bank.
T. Kalaiselvan, Advocate
(Expert) 12 July 2014
No doubt bankers cannot club the eucational loan and the other pending loan to bring both of them under the umbrella of sarfaesi act, however, the bank has to recover the loan amount,so they will be adopting all the viable options available before them.
There are several options that are available to you when you cannot make the payments on your student loans. These options include:
Delaying payments on your loans through forbearance or deferment programs,
Discharging your loan through bankruptcy proceedings,
Getting on a income-sensitive or income-based repayment schedule, or
Requesting the bank for restructuring the loan;
In some situations, you may be able to obtain a deferment on your student loan payments, you may be able to get a deferment if you can show economic hardship, are returning to school, are unemployed, or looking for a job.
Another option that you have when you cannot pay back your student loans is to try to have your loans discharged through bankruptcy. However, this is very hard, indeed almost impossible, to accomplish under current law. In order to have the best chance of having your student loans discharged through bankruptcy, you will have to file a separate court action and you should probably also hire an attorney to help you make the most convincing argument possible.
Contact a qualified debt and bankruptcy advocate to find out your options
for navigating the best path forward.
Raj Kumar Makkad
(Expert) 13 July 2014
The suggestions provided by T.Kalaiselvan are very practical.
Manikandan
(Querist) 16 July 2014
thank you every one for your suggestions.
