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Non-cosigner loans for international students

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by IndianGirl » Mon May 30, 2011 7:04 am
Hello

I have a question on loans for international students without a cosigner provided by top b schools. My question is this: What happens in situations where in the student after completing school is unable to pay the loan say for instance due to a very bad economy where he/she is not able to get a job or maybe due to some severe health issue? How do the schools handle these cases? And what is the impact on the student legally or otherwise?

Thanks for your time!
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by apphelp » Tue May 31, 2011 6:11 am
Hi,

There were cases in 2008 & 2009 when market was bad where B school grads were not able to get jobs & hence couldn't start repaying.

In most of these cases the banks generally increase the moratorium period till the person gets a job or starts working. The banks will though charge interest on the loan amount during the period from post graduation to job and add it to your principle.

Normally banks don't get into any legal action unless the borrower runs back to his home country & has shows no signs of coming back or repaying the loan.

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