The Hindu Business Line : Education loan defaults rising
It is very unfortunate that meritorious and needy students obtaining Educational Loans from the Public Sector Banks on concessional terms not coming back to honour their obligations and defaulting. Then, why blame businessmen and farmers whose fortunes are dictated by external factors and become defaulters of bank loans. Long years back, Government of India used to offer Merit Scholarships and Fee waivers or concessions to all the top ranking students to feilitate the pursue higher studies. Most of these used to be IITans, who after graduating, quietly leave the country and never look back. There was also a scheme of offering merit-based loans from Government for higher studies which could never be recovered.
But, when loans are obtained from Public Sector Banks, it is not fair for the cream of the society with merit turning to be Non Performing Assets. Such irresponsible conduct of the borrowing student community is untenable. This would not only have an adverse on the banks' repayment culture, but would also force the government and banking system to review and withdraw the facilities to be hitting the future generation.