In proud move to provide relief to the thousands of students and their families, the Kerala government has decided to launch a scheme to repay the education loans. Chief Minister Pinarayi Vijayan announced that the scheme would be implemented with retrospective effect from April 1, 2016.
Thousands of students who have fallen into the debt trap, have hailed the government’s decision through social media. The 900 crore scheme was announced on the special one-day session of the assembly held in old legislative complex in connection with the diamond jubilee celebration of the first legislative assembly. Beneficiaries of the scheme will be economically backward families. The state level bankers committee estimates that the scheme will cost Rs 900 crores. The government will bear 90 percent of the amount of the loans that have not become non-performing asset. The government would share 90 percent of the repayment liability in the first year, 75 percent in the second year, 50 percent in the third year and 25 percent in the fourth year.
Chief Minister said that students who took loan up to 9 lakhs will be benefitted by the new scheme. The loans of the students who have died or are physically or mentally ill will be waived off, he said.