Education loan turns costly: avoid this mistake—student returns from US empty-handed after facing financial setbacks.

Education Loan: An education loan proved to be a costly affair for a student pursuing studies in the US. Unable to repay the loan due to a failure to secure employment, he is now compelled to return to India.

Education Loan Mistakes: Indian students frequently take out loans to pursue higher education abroad. Under the terms of such loans, the student is required to find a job and repay the debt within a stipulated timeframe following the completion of their studies. If this fails to happen, the student's dreams are shattered, and they are forced to return to their home country. A similar fate recently befell an Indian student who had traveled to the US with high hopes, only to find himself returning empty-handed.

What is the Full Story?

An Indian student recently shared a post on Reddit recounting his personal ordeal. In his post, the student explained that he had arrived in the US less than two years ago to pursue a Master's degree. However, despite searching for nearly a year, he has been unable to secure a full-time job. The student noted that he is currently working on a contract basis, and his income is entirely contingent upon the availability of work. Consequently, he is barely able to cover his basic living expenses; he is neither able to save money nor make repayments toward his loan.

Survival Becomes a Struggle

The student further revealed that his OPT (Optional Practical Training) period is set to expire in May, a looming deadline that has significantly increased the pressure on him. Although he has the option to apply for an extension of this period, he remains uncertain as to whether he would be able to sustain himself even with the extension. Under these circumstances, he has concluded that returning to India is the most prudent course of action. Since the student shared this post, it has sparked considerable discussion and debate among users online. While many are advising him to stay back in the US, others—taking into account the current market conditions—are suggesting that he return to India.

Avoid Making These Mistakes

If you, too, have taken out an education loan, it is imperative that you exercise caution and remain vigilant. If you have taken out a loan to fund your education, you should begin your job search immediately upon completing your studies. This is because, once your coursework is finished, you will typically have a grace period of only six months to a year. If you secure a job within this timeframe, you will be able to repay your loan. However, if you fail to find employment, you could come under the bank's scrutiny. If you are unable to find a job while living abroad, you can return to India, take up a job here, and repay your loan.