Published: 09th December 2019
No proposal for education loans waiver, says Finance Minister
Nirmala Sitharaman rejected the possibility of waiving off education loans, in her statement in Lok sabha
The government of India on Monday said there is no proposal under consideration for waiver of education loans. In the last three years from 2016-17 to March 2019, the number of outstanding education loans rose from Rs 67,685.59 crore to Rs 75,450.68 crore in September 2019, as per data provided by public sector banks.
More than 90 per cent of these accounts are standard as on March 31 this year, Finance Minister Nirmala Sitharaman told the Lok Sabha. The minister also said that as reported by public sector banks, no case of suicide by students due to unbearable pressure from banks to repay education loans has been reported.
In a written reply, she said banks have been sensitized to adopt a non-coercive strategy for the recovery of education loans. "Further, there is no proposal under consideration for waiver of education loans," she noted.
According to her, data linking education loans sanctioned by banks with securing of jobs is not centrally maintained.