ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The answer: Yes! However, there are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment. Loan forgiveness means you don’t have to pay back some or all of your loan.

Detailed explanation-2: -Do student loans go away after 7 years? While negative information about your student loans may disappear from your credit reports after seven years, the student loans themselves will remain on your credit reports-and in your life-until you pay them off.

Detailed explanation-3: -But if this continues up to 90 days and you still haven’t paid your EMIs then the lender can declare your account as NPA (Non-Performing Asset ) which means the lender classifies you as a defaulter and it reflects on your credit report and reduces your credit score drastically.

Detailed explanation-4: -Debt forgiveness happens when a lender forgives either all or some of a borrower’s outstanding balance on their loan or credit account. For a creditor to erase a portion of the debt or the entirety of debt owed, typically the borrower must qualify for a special program.