Scheme to subisidise higher education for ST students

Updated on: Saturday, November 05, 2011

Tribal Affairs Ministry launched a scheme to offer subsidized education loans to Scheduled Caste (ST) students at concessional rate for higher, professional and technical education including Ph.D in government-approved institutions.

This is a "unique" programME which will benefit the tribal population with annual family income upto double the poverty line in pursuing higher and technical education at a very low rate of interest, Tribal Affairs Minister V Kishore Chandra Deo said here.

"It is a scheme which has been started for the ST students for the first time. This will enable them not only to actually gain seats in institutions and universities but also to sustain their courses which will last for four or five years," he told reporters here.

The six per cent rate of interest which is payable only after completion of the course or after getting a job will encourage the students from ST community to reach upto the levels where they can enroll for courses in higher and technical education, he said.

The present limit on annual family income for the candidates willing to avail the scheme is Rs 39,500 for rural areas and Rs 54,500 for urban areas.

To ensure smooth repayment of loan, the moratorium period in the scheme includes the course period plus one year or six months after getting job.

"The beneficiary students will have to start paying back the loan only after they finish the course and six months after getting a job.

This also can span over a period of five to ten years, which I think is very very reasonable," the Minister said.

Observing that the students will be encouraged to go for a wider range of career avenues, Deo said "I am sure they will be able to start entrepreneurship on their own and they can also get into other avenues as they will be well qualified. "

Replying to a question why students of ST community are not able to go for higher education, he said "many of them are not able to reach upto those level and appear for competitions."

He said lack of money and opportunity both act as hurdles in ensuring good education to students in tribal areas.

"I think both the factors (lack of money and opportunity) contribute equally. For the first part, we have started model schools all over the country. Then, we are giving money for infrastructure and for education in these places also," Deo said.

On the number of students who can avail this scheme, Deo said "there is no limit to that. The feedback we have got from banks is that from 2005 and 2011, the demand for such scholarships has increased from 1,80,000 to 3,20,000. Of course, that includes all students but this includes a large number of ST students."

The loan would cover basic expenses for admission, examination, library, laboratory and tuition fee including the cost of books and stationery and computers.

It will also include the cost of study tours, project and thesis along with an insurance premium for student and any other expense towards completion of course.

Scheme to subisidise higher education for ST students

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