Treating loans as obligations and maintaining repayment hygiene, and seeking timely financial counseling can help students gradually restore their creditworthiness. Even in cases of distress, prioritising full repayment over settlements can significantly improve long-term financial prospects. | Photo: iStock/ Getty Images
Education loans offer a getaway for students who intend to continue their studies when personal finances fall short. These loans, however, also create long-term financial obligations. With increased access to loans, students at times borrow more than what they could repay.
When students default on their education loans, the consequences are far-reaching and last long after they have difficulty repaying their loans. A negative credit history can make it difficult later in life to achieve other milestones such as purchasing a home. Many young working adults struggle to recover from the negative consequences that their poor repayment decisions created. It may take many years to move past limited financial mobility and achieve independence.
Published – April 20, 2026 03:31 pm IST
