Global Tensions Push Education Loan Costs Up: Interest Rates May Rise, Impacting Student Finances
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Education Loans to Get Costlier: Geopolitical Tensions, Inflation Push Rates Up
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CNBC Awaaz•16-03-2026, 08:37
Education Loans to Get Costlier: Geopolitical Tensions, Inflation Push Rates Up
•Education loans are set to become more expensive, with interest rates likely to rise due to global geopolitical conflicts.
•Ongoing tensions involving America, Israel, and Iran are expected to increase energy prices, strengthen the dollar, and fuel inflation.
•RBI policies, including repo rate changes (from 4.40% to 6.50% and then 5.25% by Feb 2026), directly influence loan interest rates in India.
•Students studying abroad face higher costs due to the dollar reaching a record high of 92.45, impacting fees and living expenses.
•Experts advise paying interest during the moratorium, limiting EMIs to 40-45% of income, and budgeting for potential 100-200 basis point rate increases to avoid debt traps.
