By: M.S.Yatnatti Editor and Video Journalist Bangaluru: Students have great responsibilities on their shoulders .Loan is loan and it need to be re-paid. Once you take a loan the interest meter will be on from the date of availing loan.Handle with care the loan taken and never default on your education loan EMI .Defaulting will affect your credit score and you may not be eligible for future loans and your default will affect your guarantors credit score also..If you have problem in repayments restructure your loans and get a part time job while you are studying and get your education part funded by scholarship and part time jobs and take only necessary loans and make your calculations on repayments before taking loans.With higher education system becoming costly it is advisable to calculate return on investment before enrolling into the course and find out if the course is worth doing and do enquire about quality of education . Whether it is for buying a house or a car or pursuing higher studies, loans are common today. With college fees increasing every year, many have no option but to opt for education loans. For undergraduate engineering courses, the fees could be Rs 5-10 lakh, while for a five-year medical course at a private college, this could go up to Rs 50 lakh. For post-graduate courses such as those on management, fees could be more than Rs 10 lakh.
Education is central to the human resources development and empowerment in any country. National and State level policies are framed to ensure that this basic need of the population is met through appropriate public and private sector initiatives. While government endeavour to provide primary education to all on a universal basis, public funding of higher education isnot considered feasible. Cost of education has been going up in recent times and since the student has to bear most of the cost, there is a clear case for institutional funding in this area. This model education loan scheme is an attempt to bring out a viable and sustainable bank loan scheme to meet the aspirations of our society. Knowledge and information would be the driving force for economic growth in the coming years. The current rate of economic growth of the country demands technically and professionally trained man power in large numbers. In this backdrop, loans for education is seen as investments for economic development and prosperity. The model Education Loan Scheme was developed by the Indian Banks' Association to help meritorious studentspursue higher education in technical and professional courses. As the focus is on development of human capital, repayment of the loan is expected to come from future earnings of the student after completion of education. Hence the assessment of the loan will be based on employability and earning potential ofthe student upon completion of the course and not the parental income/family wealth.