New Delhi: As a part of the second 100-day agenda of the United Progressive Alliance (UPA) government, the Human Resource Department (HRD) Ministry will soon bring to the Cabinet the student loan interest subsidy scheme.
The ministry has decided that the parental income criteria for students to avail the subsidy for professional courses will now be Rs.4.5 lakh per annum.
According to a senior official, "Though initially Rs.2.5 lakh income criteria was being mulled, the Planning Commission and the Committee of Secretaries to which it was later referred recommended that the income criteria be fixed in such a way that the scope and scheme gets widened. Therefore, a reasonable income criterion has been fixed. The revised scheme will be mulled in the Cabinet soon."
Currently Rs.14,000 crore is being provided as loans to students annually under the existing higher education loan scheme.
But, many poor and meritorious students do not apply for the loan considering the interest and collateral security provisions.
The new scheme will however, bear the burden of education loan during the moratorium period.
Moratorium period is the duration of academic courses, in which, the student usually does not pay monthly installments for the loan, but the total interest for this moratorium period gets added to the principal amount once the repayment begins after the student gets employed.
The new scheme wants to cater to the non-creamy layer of the society.
The scheme is the promise of the UPA government's Common Minimum Programme that assured that nobody will be denied professional education no matter whether he/she is poor.
The scheme is expected to benefit around five lakh students and the interest burden on the government is expected to be nearly Rs.4,000 crore over the entire 11th plan period.
The Modern Educational Loan Scheme has been formulated by the Indian Banks' Association.
The loan facility will be available to those students who will take admission in professional courses offered by recognized institutions - government and private.
Soruce:http://www.indiaedunews.net/Delhi/MHRD_to_revise_subsidy_for_professional_courses_9064/
The ministry has decided that the parental income criteria for students to avail the subsidy for professional courses will now be Rs.4.5 lakh per annum.
According to a senior official, "Though initially Rs.2.5 lakh income criteria was being mulled, the Planning Commission and the Committee of Secretaries to which it was later referred recommended that the income criteria be fixed in such a way that the scope and scheme gets widened. Therefore, a reasonable income criterion has been fixed. The revised scheme will be mulled in the Cabinet soon."
Currently Rs.14,000 crore is being provided as loans to students annually under the existing higher education loan scheme.
But, many poor and meritorious students do not apply for the loan considering the interest and collateral security provisions.
The new scheme will however, bear the burden of education loan during the moratorium period.
Moratorium period is the duration of academic courses, in which, the student usually does not pay monthly installments for the loan, but the total interest for this moratorium period gets added to the principal amount once the repayment begins after the student gets employed.
The new scheme wants to cater to the non-creamy layer of the society.
The scheme is the promise of the UPA government's Common Minimum Programme that assured that nobody will be denied professional education no matter whether he/she is poor.
The scheme is expected to benefit around five lakh students and the interest burden on the government is expected to be nearly Rs.4,000 crore over the entire 11th plan period.
The Modern Educational Loan Scheme has been formulated by the Indian Banks' Association.
The loan facility will be available to those students who will take admission in professional courses offered by recognized institutions - government and private.
Soruce:http://www.indiaedunews.net/Delhi/MHRD_to_revise_subsidy_for_professional_courses_9064/
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