Thursday, February 7, 2019

Double whammy: Students return from US only to stare at loan burden

Sudipta.Sengupta@timesgroup.com

Hyderabad:07.02.2019

After battling the trauma of detention, it’s the fear of being sucked into a severe financial crisis that’s come to haunt students from the sham University of Farmington — most of them from Telangana and Andhra Pradesh — who were forced to fly out of the US earlier this week. With little or no savings, and a bleak career ahead, these students fear that their families might even lose the bank guarantees, they had taken loans against, to travel to America. Worse, bank officials are now mounting pressure on them toclear thedebt assoon as possible, the amount ranging from anywhere from ₹20 lakh to₹40 lakh.

Speaking to TOI, these distraught students said they are now scurrying around to find jobs in Hyderabad, even if that means drawing meagre salaries of ₹15,000 to₹20,000.

“The branch manager called my father (an employee of a Nalgonda-based chit-fund company), soon after I returned, and told him to pay off the loan in the next four months. Else, they’ll forfeit our land that we gave as surety,” said L B Nagar-based Ramesh* who was arrested on January 29 and kept at a detention centre in San Josefor closeto48 hours. Ramesh went to the US in 2014, to pursue a master’s degree from the Northwestern Polytechnic University (NPU). While he managed to work on an OPT (Optional Practical Training)for a brief while,earning $3,200 a month, he had to quit when the university’s STEM programme lost accreditation.

“Because my H1B application wasn’t picked in the lottery, friends suggested I enrol with Farmington and find another job under CPT (Curricular Practical Training). This was the best option because the feewaslow anditofferedinstalment facility. Little did I know that I’d end up in jail and be left with nothing ultimately,” said Ramesh, who has to pay ₹28 lakh (principal and interest).

Narayana* is sailing in the same boat. While he managed to escape detention, the Mahbubnagar boy had to return to India almost overnight, with ₹10 lakh loan (he paid a part of it) hanging over his head. His deadline: June 2019.

(*All names changed on request)

Not taking chances

Following the Farmington fiasco, Indian students enrolled with other US universities offering Day 1 CPT are also taking the next flight back. While there has been no crackdown on these varsities, students do not wish to take a chance. This despite, some of these universities issuing notifications assuring students about their being no legal issue with the institutions. TNN

We have to start our careers all over again in India. That means we’ll need to settle for a beginner’s salary, which won’t be enough to cover our EMIs. Now, I have to pay a monthly instalment of ₹52,000 towards my loan. I have no idea how I’ll do this. Our only hope is the central government

Prakash | STUDENT FROM HYDERABAD

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