Strongly OPPOSE HRD Ministry's move to cut off Student Loan Subsidy

The decision being taken by the BJP Government to cut a UPA –introduced subsidy that allowed students whose parents have an annual income below 4.5 Lakh Rupees to access interest free bank loans for professional and technical education.

Till last year nearly 18 Lakh poor students have benefited due to this scheme.In the Union Budget 2009-10, the then finance minister Shri Pranab Mukherjee had introduced the Central Scheme for Interest Subsidy (CSIS) with respect to education loans disbursed after April 1, 2009, under which the government paid the interest on behalf of the student in the period of their study and a little beyond. In 2014, the then Finance Minister, Shri P. Chidambaram had waived the interest on education loans taken before March 2009, amounting to Rs 2,600 crore. This is the approach the UPA Government had towards students and education.

Not only the poor, but middle class students too struggle to pursue technical education in private institutions due to the high fees. It is the responsibility of the government to make it feasible for students hailing from all economic backgrounds to have equal access to education. This move puts lights on the regressive nature of the BJP government.

They claim that funds crunch has prompted the proposal. But it was the finance Ministry which cut Rs 3,900 crore off this financial year’s higher education budget, which in turn has led to such crunch. Clearly, the future of our youth is barely a matter of concern to our Government.
Gautam Adani of Adani enterprises, close aide of PM Modi was granted a loan of Rs. 6,200 Crore, in spite of having a debt of over Rs. 70,000 Crore. It’s shameful how one qualifies for a privilege which is beyond the limits of acceptability or fairness, merely by being ‘close’ to the PM while poor students are being denied of equal opportunities due to ‘financial crunches’.

NSUI not only condemns this action in the strongest possible terms but also warns the Government, especially its HRD Ministry led by Ms.Smriti Irani, that such regressive approach by them will not be tolerated.

We demand strongly that the decision to cut the student loan subsidy be revoked immediately, and all student loans be made hassle free and interest free.