Indian Students Shun US, Causing Education Loan Crisis
India’s education loan sector is experiencing a significant downturn due to decreased demand for U.S. education loans, stemming from the Trump administration’s stricter immigration policies. Lenders are responding by tightening approval processes and prioritizing high-achieving applicants to mitigate repayment risks, resulting in a shrinking pool of eligible borrowers. This decline is impacting various financial institutions, including banks and NBFCs, with some reporting a halving of U.S. loan applications. While alternative study destinations like the UK, Australia, and Canada are offering some relief, lenders are also preparing for potential loan restructuring to address the increased risk of loan defaults.
John Q. Hosedrinker