Hello friends!

RESPECTED SIR,

Subject: Implementation of ‘Rajiv Gandhi Students Education Loan Scheme’ Regd.}

I would like to make use of this opportunity to share with you a plan with regard to the implementation of the ‘Rajiv Gandhi Students Education Loan Scheme’, that came across my mind for your kind perusal.

The Congress lead United Progressive Alliance (UPA) government has made it easy for the students to avail loans for education in the last few year. But, the forced are forced to undergo lot of hassles in the form of surety, salary certificate of their parents and a government officer as a guarantee for the loan. This sorry state of affairs has denied loans to many students coming from financial backward families.

Banks claim that they are forced to ask for such surety owing to bitter experiences they encountered from defaulters in the past. They claim that students who completed their course of study and got into a job are pointing out at their parents when banks approached them to repay their loans, while innocent parents on the other hand pleaded innocence and asked them to approach their wards for repayment of the loan as they had borrowed the money from the banks for their education.

At this juncture I would like to put forward my suggestion according to which loans could be disbursed to students without any surety while repayment could also be done at ease.

How it could be issued:

Applications could be obtained by students from the principal of their respective educational institution. A committee formed under the leadership of the District Collector, with Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs), educationalists, representatives from students forums and bankers, as panelists who should review the application.

Loans could be disbursed to all the applicants. Principals could get the loans from banks and issue them to the students, similar to the fashion in which they receive scholarships from the government and give them to the students. The government should make it clear to the students that they were the ones who should repay their loans and not their parents.

How it could be collected:

The educational institution should mention the loan particulars in the Transfer Certificate (TC) and/or Degree Certificates issued by the university. Once the student joins a government or private company the employer should be able empowered to deduct a portion of his/her salary as repayment of the loan till the completion of repayment, similar to deduction of premium for LIC policy, Provident Fund (PF) from the salary.

If the employee switches from one job to the other the new employer should continue the same practice till the loan was completely repaid. Once the loan was completely repaid the manager of bank that had issued the loan and the principal of the respective institution from where the student graduated should issue a ‘No Due Certificate’.

The Benefit:

The goal of taking higher education to the mass of youth from financially poor backgrounds would be made possible through this scheme. It would also pave way for those youth to raise the standard of living of their families, society and country at large.

Above all those who got benefited through this scheme and their families as well would be loyal to the ‘Congress’ till the end of their days.

Thanking you placing the above plan for your kind disposal,

(T. Nandha Kumar)
former president, town NSUI
youth congress activer @ journalist,

Vellore, tamil nadu