Students should be vigilant about loans for futile degrees, says RBI governor

Students should be vigilant about loans for futile degrees, says RBI governor

- in Education

Students should be vigilant about loans for futile degrees, says RBI governor

Over the ongoing issue of colleges/universities functioning illegally and demanding excessive fees from students, recently Reserve Bank of India governor Raghuram Rajan said that all the aspiring students should be careful about selecting degrees in various colleges across the nation.

Details on Rajan’s sugegstions:

  • Higher education should be made affordable
  • Students should not take up useless degree that might not give them any job opportunity
  • Students should be careful about colleges with unknown identity demanding high fee
  • Also, banks must keep a check on student’s loans so that they are paid on time
  • Fee concessions should be given to those who have genuine reasons for not paying fee.

Moreover, while speaking at the convocation ceremony of Shiv Nadar University, Raghuram said, “We have to be careful that student loans are repaid in full by those who have the means, while they are forgiven in part for those who fall on bad times or those who take low-paying public service jobs.”

 On inequality within countries:

  • All the students coming from middle class families take huge amount of loans for completing higher education
  • Also, the well-run market economies seemed to be favoring people who still have not paid their penalties
  • To guarantee full faith in the market, all the students should get access of schooling and health care
  • He also said, “This is because skills and capabilities have become much more important in well-paid jobs, and those born in good circumstances have a much better chance at acquiring theseâ?¦ the income inequality is on the rise, with some having colossal incomes and others worrying about the next meal.”

In order to create a non-discriminating job and guarantee full faith in market, the students from all sections of the society should have a fair excess to schooling and health care facilities equal opportunities, he added.

While concluding his speech, he said,”Rather than prohibiting the use of money and wealth, let us think about increasing society’s tolerance for its use.”