Job Slump and Loan Repayment Woes Taking a Toll on Recent Grads

Yes, thanks to a slew of government incentives and a push by the public sector banks have eased the process of getting an education loan.  But the lack of appropriate opportunities, coupled with financial burden and other parameters are making it hard for fresh grads to have a head start in their career.

As per the Reserve Bank estimates, there are nearly 24 lakh education loan accounts in PSU banks alone. And it added that as the meltdown and insecurities about the future outlook worsen, many of these accounts are bound to become liabilities. This is mirrored by the figures of non-performing assets (NPAs). In 2007-08 the NPA figures were 2 percent and presently it has reached 6 percent, which is not very encouraging.               

TV Mohandas Pai, Chairman, Manipal Global Education, pointed out that the rising aspirations among middle-class Indians is pushing them to over-borrow and sign their children up for advanced degree courses. And he added that, in the current job crisis, it is this financial burden on students that will be the next target for government bailout.      

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