Students who are ineligible for any benefit under government schemes and policies can now avail loans up to Rs 10 lakh for higher education in domestic educational institutions at a 3% interest rate, announced Finance Minister Nirmala Sitharaman on Tuesday, July 23.
The minister added that direct e-vouchers to one lakh students will be awarded every year. While the government intends to upskill and provide opportunities to the youth, students and experts have a mixed reaction to these financial loans.
Speaking to The New Indian Express, Tanishq Kumar, a fourth-year engineering student at BMS College of Engineering (BMSCE), Bengaluru, said the loan scheme is highly beneficial to students since the interest rate is meagre compared to other banks in the country.
“Such loans will help students study in institutions within the country instead of flying abroad. This will also help retain skilled individuals in the country,” he said.
However, another student said such loans can cause students to stray away from working hard and pursuing their courses.
“Easy access to large loans such as this, could lead to a decline in overall financial health. It needs to be given certain groups only or it would discourage responsible saving, as individuals may become reliant on government assistance instead of building their financial security,” explained Suraj Gowda, a third-year student at Bangalore Institute of Technology (BIT).
The FM said the loan can be availed by students pursuing undergraduate (UG), postgraduate (PG) or professional courses and will cover tuition fees, accommodation, and other educational related expenses.
This year the government has also made a provision of Rs 1.48 lakh crore for education employment and skilling. A few student communities opined that instead of providing more scholarships and reducing fees the government is pushing students to be debt-ridden.
Shweta Sastri, Managing Director, Canadian International School, in Bengaluru said there is also a need for targeted focus on enhancing the development of India as a global educational hub to attract more international students.
“There is also a need to upscale the education system to attract more foreign students. The government should continue to invest to bridge the digital divide and make quality education accessible to all,” she said.
