Many students in India take education loans to complete their studies. But after completing education, repaying the loan becomes difficult due to unemployment, low income, or other financial problems. In such cases, students often ask: “How can I get my student loan waived in India?“
Let’s understand the answer in very simple language.
Also Read: How to Pay Education Loan Without Interest
✅ What is Student Loan Waiver?
Student loan waiver means you don’t have to repay your full education loan. The bank may forgive a part or the entire loan amount due to government schemes or special conditions.
🧠 Is There Any Student Loan Waiver Scheme in India?
There is no general loan forgiveness scheme like the USA in India, but some special loan waiver and interest subsidy schemes are available, especially for:
- Economically weaker students
- Students working in rural areas
- Students in government priority sectors
🔑 Main Ways: How Can I Get My Student Loan Waived in India?
1. Government Interest Subsidy Schemes
These schemes do not waive the loan amount but reduce the burden by paying the interest during the study period.
📌 Central Sector Interest Subsidy Scheme (CSIS)
- For students from economically weaker sections (EWS) (family income ≤ ₹4.5 lakh/year)
- Covers interest during course period + 1 year moratorium
- Applicable only on loans up to ₹7.5 lakh from scheduled banks
Example:
- Loan: ₹5,00,000
- Interest: 9%
- Study + 1 year: 5 years
- Total interest saved = ₹5,00,000 × 9% × 5 = ₹2,25,000 waived (paid by govt)
✅ Apply through your bank while taking the loan.
2. State Government Loan Waiver Schemes
Some states offer student loan waivers under special conditions:
📌 Tamil Nadu Government Loan Waiver
- Waives education loan for students who:
- Completed the course
- Are unemployed or under-employed
- The bank receives the payment from the state government.
📌 Kerala Student Loan Repayment Scheme
- Offers subsidy of up to 60% of loan for students whose:
- Family income < ₹9 lakh/year
- Loan amount is ≤ ₹9 lakh
3. Professional-Based Loan Waiver
You can get loan waiver or benefits if you work in certain professions or remote areas.
- Doctors and teachers working in rural areas may get partial waivers or extended repayment periods
- Public service jobs sometimes come with loan support benefits
👉 Check with your employer or government recruitment rules
4. Loan Write-Offs by Banks (Not Same as Waiver)
Sometimes, banks write off loans when they are not recovered for years. But it:
- Harms your credit score (CIBIL)
- Does not remove your obligation legally
- Should be avoided unless there’s no other way
💰 How Much Can You Actually Save?
Let’s do a simple calculation for better understanding:
🎓 Student A takes a loan of ₹6,00,000 for B.Tech
- Interest rate: 9%
- Course duration: 4 years
- Moratorium period: 1 year
Without subsidy:
- Total interest = ₹6,00,000 × 9% × 5 = ₹2,70,000
- Total repayment = ₹8,70,000
With CSIS subsidy:
- Interest waived = ₹2,70,000
- Student repays only ₹6,00,000
👉 Student saves ₹2.7 lakh with just this one subsidy scheme!
📄 Documents Required to Apply for Loan Waiver/Subsidy
- Income certificate (from Tehsildar or SDM)
- Aadhaar card
- PAN card
- Bank loan details
- Bonafide certificate from college
- Completion certificate of course
- Address proof
- Caste certificate (if applicable)
- Job proof (for some schemes)
🛠 Steps to Apply for Student Loan Waiver/Subsidy
- Visit your bank and ask about available schemes.
- Fill the application form for the required scheme (CSIS or state-level).
- Submit documents with the application.
- Follow up regularly to track your application status.
📝 Tips for Students to Reduce Loan Burden
- Apply for interest subsidy schemes on time.
- Choose low-interest rate banks (like SBI, Bank of Baroda).
- Try to pay small EMIs during the course, if possible.
- Apply for scholarships and grants to reduce loan amount.
- Maintain a good CIBIL score to get better terms later.
📌 Important Government and Bank Links
| Scheme/Program | Website Link |
| CSIS Scheme | https://www.vidyalakshmi.co.in |
| Bank of Baroda Education Loan Help | https://www.bankofbaroda.in |
| Tamil Nadu Waiver Info | https://www.tn.gov.in |
| Kerala Loan Repayment Support | https://www.ksfec.gov.in |
📚 Final Words
Getting a student loan waiver in India is not very easy, but it is possible in some cases. You should:
- Know all the government and state schemes
- Talk to your bank manager clearly
- Keep all documents ready
- Explore alternate job options that come with loan benefits
Even if full waiver is not possible, interest subsidy can save you lakhs of rupees. So, don’t lose hope. Use your rights as a student wisely and seek help if needed.