Karnataka HC Issues Notice On Plea Seeking To Extend Education Loan Moratorium Scheme Benefit To All Students [Read Petition]

A division bench of Chief Justice Abhay Oka and Justice Ashok S Kinagi passed the order while hearing a petition filed by Dr. Ram Manohar Lohiya Thinkers Forum, Bengaluru.

The bench though refused to consider two other prayers mentioned in the petition which were seeking direction to the State and Union governments to either waive outstanding education loans with effect from March 1, 2020, or waive the interest amount on all education loans for two years.

The petition filed through advocate Shaikh Ismail Zabiulla argues that India being the fastest growing economy of world, it cannot ignore the student community who plays a vital role in the development of a country and there is a genuine need to help the student community who is suffering from stress anxiety depression etc on account of education loan liabilities and bleak career due to Covid-19.

The Central government scheme called the "Central Sector Interest Subsidy Scheme" is for the students belonging to the economically weaker sections of the society. Under this scheme loan is provided without any collateral security and third party guarantee and a maximum amount which can be extended is upto Rs 7.5 lakh. It is done one time either for undergraduate or postgraduate or integrated courses.

In this scheme, the interest payable during the moratorium period, that is course period plus one year, would be payable by the government in the case of students belonging to economically weaker sections.

The petition claims that time has come now to modernize our education system so that our country can get much more technically graduated people which can help our country to a developed state. Today's youth try to go to foreign countries for higher education as there are better facilities and quality of systems there. In order to achieve these objectives schemes like the CSISS need to be more generous.

The court has now posted the matter for further hearing on September 4.

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[Read Petition]