Why repayment of student loan is important?

Education is a must for the development of society but a quality education is something which matters for every individual who wish to fly high into the skies of successes and build a strong future foundation for them and their family in life. Today, due to the rising inflation, ever advancing lifestyle and living standards, state-of-the-art education centre facilities, ultra amenities, global economic turmoil it becomes extremely difficult for the average middle class people to educate their children along with the stipulated income sources. But still every parent wish to provide best of the education facilities to their children and therefore, more and more parents or rather students who pursue higher education opt for suitable education loan today.
A sound education loan ensure that there is no lack of finances to hamper growth of meritorious students who often have to curb their aspiration of higher studies in India or abroad due to shortage of right finances.
Today government has taken concrete steps for providing better education facilities to the youth of our nation. In order to make sure that no student is denied of pursuing higher education, various banks and private finance firms in India have come up with innovative and cost effective solutions for educational loan scheme. Student loans which are niche focused such as Pre-Visa Disbursement loan, Pre-Admission loan, GRE-based Loan, Bridge Up loan, fast track loan are some of the varieties that cater exclusively for individual needs in India. However, besides taking a loan for higher studies another big concern that runs through minds of parents is about the repayment of education finances.

Repayment of loans and finances is extremely important to maintain your credit rating in the market. If not paid on time you might need to bear the brunt of such loan defaults. Due to some new reforms the borrower often gets into a deeper trouble which he or she may not be realizing, owing to a poor CIBIL score for defaulting. Resultant is it becomes extremely difficult for you to take loans for your future purposes like car loan, home loan etc. Therefore, if you have taken an education loan for yourself or for any of your children you should also take up a responsibility of repaying loan on time to avoid any such complications.
The article intends to share some reason which could be rectified on time to create good repayment history:
Moratorium period
While taking any form of study loan it’s important to get aware of the loan waiver period. Companies or banks do not expect you to start repayment of the loan immediately and are ready to wait for a certain period till you find a find a job. Often called as moratorium or waiver period it varies from company to company or bank to bank and its good idea to get things acquainted beforehand on waiver period. Although, waivers are good but remember companies or banks start charging the interest on education loans immediately and not wait till the waiver period ends.
Right Job Assumption
Many fresh job seekers who have completed their higher studies and get into their jobs commit the cardinal sin of waiting for the right job or a high paying job before repaying the education loan. Remember the value of loan is accumulating interest and therefore the earlier you repay the loan, the lesser would be the interest you end up paying on the loan.

Tax Benefits:
A student loan will not only help you take care of your educational expenses but also comes with tax benefits. So, it offers a tax deduction on the interest paid in the financial year under Section 80 E of the income tax act. You can take up the opportunity and save your money on taxes during initial period.
Defaulters list
Any defaults on repayment can directly impact your CIBIL score. A low CIBIL score will obviously impact you chances of taking other loans such as car loan, home loans etc. It is therefore essential to make sure you never let your education loan go down on default note even at the costs of controlling financial investments for the time being.
Prepayment
Since student loan keep on accumulating interest, it good to opt for prepayment facilities if available and get a clean slate as soon as possible.
Source: (https://tackk.com/why-repayment-of-student-loan-is-important)