{"id":5207,"date":"2019-12-19T18:20:26","date_gmt":"2019-12-19T12:50:26","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=5207"},"modified":"2019-12-19T18:20:26","modified_gmt":"2019-12-19T12:50:26","slug":"problems-of-higher-education-in-india","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/problems-of-higher-education-in-india\/","title":{"rendered":"Problems of Higher Education in India"},"content":{"rendered":"

Relevance: Mains: G.S paper\u00a0II: Governance: Education<\/strong><\/p>\n

Context:<\/h3>\n

\u2022 A recent report noted that priority sector education loans disbursed by banks registered a year-on-year decline of 5.6 per cent in November 2019, following a 4.7 per cent drop in 2018 and a 3.3 per cent per cent dip in 2017.
\n\u2022 The children\u2019s education remains the top priority for aspirational Indian households and that sought-after higher degrees are far from affordable for most folk.<\/p>\n

Issues on Demand side<\/h3>\n

\u2022 It is inconceivable that shrinking education loan disbursements represent a demand-side problem.
\n\u2022 Lenders appear to be stepping back from this category owing to their adverse credit experience with it.
\n\u2022 Data from the government earlier this year showed that 9 per cent of education loans had turned into non-performing assets (NPAs) for public sector banks by March 2018.
\n\u2022 Banks cannot be wholly blamed for letting commercial considerations override social objectives when it comes to lending decisions.
\n\u2022 Rising defaults on student loans are a symptom of the uncertain job and income prospects facing students who graduate from all but a handful of premier institutions in India.<\/p>\n

Lack of Educational infrastructure:<\/h3>\n

\u2022 Such as engineering or management, where there\u2019s no dearth of physical infrastructure put up by private promoters, graduates are found to be lacking in the basic skill-sets sought by recruiters.
\n\u2022 Fees at these mid-rung institutions have risen in inverse proportion to the placement prospects of their students, landing unemployed graduates and those in low-paying jobs in a debt trap.
\n\u2022 The Centre\u2019s own attempts at making premier institutions such as the IITs and IIMs self-sustaining by sharply hiking their course fee have had a role to play in this anomalous situation.
\n\u2022 With education loans turning unsustainable both for lenders and borrowers, it is high time it reviewed its fee structures for higher education to better align them with income levels and market realities on entry-level compensation.
\n\u2022 Public investments in higher education are also imperative for India to rein in the immense brain-drain as well as dollar-drain, from an increasing number of parents choosing to send their wards abroad even for basic under-graduate studies.<\/p>\n

Way ahead:<\/h3>\n

\u2022 The crying need for student loans in India\u2019s current demographic context, banks need to be pushed too, to make these loans more borrower-friendly.
\n\u2022 Their current practice of unofficially insisting on collateral or personal guarantees, rigid loan tenors and repayment terms and the whimsical powers that bank officers seem to enjoy in turning away deserving candidates, results in student loans being accessible largely to those who can do very well without them.
\n\u2022 The fact that banks\u2019 aggregate education loan portfolio stood at just \u20b967,000 crore by October 2019 at 0.8 per cent of gross bank credit, is ample proof that they haven\u2019t met even a fraction of the demand.<\/p>\n","protected":false},"excerpt":{"rendered":"

Relevance: Mains: G.S paper\u00a0II: Governance: Education Context: \u2022 A recent report noted that priority sector education loans disbursed by banks<\/p>\n","protected":false},"author":1,"featured_media":3530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,18],"tags":[392],"class_list":["post-5207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-ii","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=5207"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5207\/revisions"}],"predecessor-version":[{"id":5208,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/5207\/revisions\/5208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3530"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=5207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=5207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=5207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}