The main objective of this paper is to study the performance of education loans over time and identify key risk factors of such loans across various geographies and constitutions. Using borrower level data of 5000 borrowers, from four major public sector banks in India, this paper empirically examines how education loan defaults and losses are explained by various characteristics associated with the loan (loan amount, interest rate, repayment period) and security positions (such as margin given and security ). Various borrower characteristics such as age, marital status, presence of guarantor or co-borrowers also have been examined. A set of univariate statistical tests as well as multivariate logit and Tobit regression techniques have been used to find out the answers. The empirical findings suggest that borrower defaults on education loan payments are mainly influenced by security, borrower margin and repayment periods. Borrowers with security cover are 1.5 times more likely to remain solvent than those without securities. A 10 percent increase in borrower margin (BMARGIN) decreases the odds of default (PD/PS) by 9.18 percent. The presence of a guarantor or co-borrower and collateral security significantly increases the chances of loan recovery and hence reduces default loss rates. Moreover, the socioeconomic characteristics of borrowers and their regional locations also act as important factors associated with education loan defaults. The paper suggests that strengthening borrower risk assessment techniques, portfolio monitoring, due diligence in lending, and institute performance measures can reduce credit risk in education loans. Merit, employability, and reputation of institutions should matter in loan appraisal to reduce the default risk.