Based on recent trends, employers are unwilling to offer good salary packages to fresh graduates and many freshers are finding it difficult to pay off their education loans. Trends also indicate that owing the preference of employers of employing fresh graduates for entry-level jobs a few years back consequently gave significant rise of educational borrowing. Owing the slowdown of jobs for fresh graduates in professional courses, there is a crisis of students and parents finding it difficult to pay off educational loans.
According to the Reserve Bank of India, there are more than 24-lakh educational loan accounts with PSU banks in India. Non-performing assets in education loans trebled in India since 2007-08, from 2% to 6%.
Read the Economic Times news article here.