The other day, I was having lunch with the CEO and the chairman of a large conglomerate. Both self-made, coming from modest non-metro backgrounds. The discussion moved towards education and both said that they could not take admission in the premium institute of the time due to financial constraints. Both highly talented, they have achieved what they should have, irrespective of the institute. What they lamented was about the missed chance to study with other brilliant students. They had a point. A good competitive environment always brings about the best in an individual.
When I left for home after lunch, this thought lingered in my mind. We at IIM Kashipur provide different kind of scholarships like:
Need-based scholarship,
Need-cum-merit based scholarship and
Merit-based scholarship.
Besides these there are various other scholarships offered by the state and the central government. But the student will have access to these scholarships only if he or she gets admission in the college. What about those who could not even reach the college even though eligible, because of monetary considerations.
I was wondering how to make the institute accessible to students in the first place? What if some student still misses admission at IIM Kashipur due to financial hardship?
The recent news about the honourable Supreme Court directing a premium institute to admit a student who lost his seat after missing the deadline for paying the admission fee, by invoking its extraordinary powers under Article 142 of the Constitution, is still fresh in the mind.
The boy, coming from a below poverty line family, missed the deadline to pay Rs 17,500 in fees to secure his seat. The boy’s father works for a daily wage of Rs 450 and they crowdfunded the amount.
I shivered. This may not be an isolated case. How many students will be missing out on their studies? The high-rise apartments and expensive cars on the streets of Mumbai suddenly seemed superfluous. If even after 75 years of Independence students are missing out on studies due to financial pressures, then what is the point of becoming the fourth or fifth biggest economy (depending upon the parameter)? The vision of becoming Vishwaguru may remain a distant dream.
While I was still pondering over this, I came across the news that the Cabinet approves the PM-Vidyalaxmi scheme to provide financial support to meritorious students so that financial constraints do not prevent any youth of Bharat from pursuing quality higher education.
Under the PM Vidyalaxmi scheme, any student who gets admission in Quality Higher Education Institutions (QHEIs) will be eligible to get collateral-free, guarantor-free loan from banks and financial institutions to cover full amount of tuition fees and other expenses related to the course. The scheme will be administered through a simple, transparent and student-friendly system that will be inter-operable and entirely digital.
QHEIs will be determined by the NIRF rankings — including all HEIs, government and private, that are ranked within the top 100 in NIRF in overall, category-specific and domain-specific rankings; state government HEIs ranked in 101-200 in NIRF and all central government governed institutions.
I heaved a sigh of relief. Now students from across Bharat will have access to studies at the best of the institutes. Neither geography nor bank balance will be a hindrance in the study.
I dived further into the news. The finer points where:
A mission mode mechanism will facilitate and drive the extension of education loans to meritorious students who get admission in the top 860 QHEIs of the nation, translating to covering more than 22 lakh students every year
A special loan product will enable for collateral-free, guarantor-free education loans; made accessible through a simple, transparent, student-friendly and entirely digital application process
Loan amounts up to Rs 7.5 lakh will be provided a 75% credit guarantee by the Government of India, to support banks to expand coverage
Furthermore, for students with up to Rs 8 lakh annual family income, the scheme will also provide for 3% interest subvention on loans up to Rs 10 lakh
This is in addition to the full interest subvention already offered to students with up to Rs. 4.5 lakhs annual family income
The last two points are very crucial, and cover the issues which had escaped my thought process. Educational expenses are not only course fee. There are expenses beyond the fee — hostel accommodation, travel expenses, food, clothes etc. One of the reasons many parents don’t send their kids to QHEIs is also because of overhead expenses beyond the academic fee.
These two points will go down as inflection points in Bharat’s education history.
For students who come from families with an annual income of less than Rs 4.5 lakh, entire interest will be waived. So if a student takes a loan of Rs 3 lakh then interest @10% will be Rs 30,000 which will be waived under Vidyalaxmi scheme.
For students who come from families with an annual income of up to Rs 8 lakh, 3% interest will be waived — if a student takes a loan of Rs 3 lakh then interest @3% will be Rs 9,000. This entire Rs 9000/- will be waived for the student.
To those who are not able to appreciate the significance of Rs 9000, I request, please check its value when you meet your cobbler next time. The bigger picture will emerge.
Suddenly the eminent educational institute on the way starting inspiring and the young minds coming in and out of them, returned my confidence. Bharat will cover its journey to Vishwaguru on the shoulders of these young minds.
I had reached the destination for the next meeting and evening tea. And yes, a lot can happen between lunch and evening tea.
Sandeep Singh is Interim-Chairperson, Board of Governors, IIM Kashipur. Views expressed are personal
