Alarming Decline in Education Loan Accessibility: Parliamentary Report Reveals Gaps

A Parliamentary Panel highlighted a drop in educational loan accessibility despite increased higher education costs. The report, led by MP Digvijaya Singh, revealed implementation gaps in loan schemes, urging reforms to ensure equitable access to education. Awareness and simplified processes are key recommendations.

A recent Parliamentary Panel report has raised concerns over the declining accessibility of educational loans, even as the cost of higher education has surged. The report, presented in the Rajya Sabha by a committee led by Congress MP Digvijaya Singh, advises the government against curtailing or rejecting loan applications.

The findings underscore a concerning trend: students from disadvantaged and rural areas remain largely unaware of educational loan schemes. This is despite various promotional initiatives by the Department of Higher Education. The committee pointed to a growing disparity, with states like Tamil Nadu, Kerala, and Maharashtra dominating loan borrowing figures.

The committee's detailed observations reveal that, while schemes promise collateral-free, low-interest access, banks enforce strict formalities. Between 2014 and 2025, active student loans decreased, although total borrowing increased. Urgent reforms are suggested, including simplified paperwork and special awareness drives to ensure equitable access to educational financing.

(With inputs from agencies.)