Guide sailing through education loan subsidy schemes for Indian students
What's the story
Education is the key to unlocking your dreams and building a successful career.
But, the skyrocketing cost of higher education, particularly for professional courses and studies abroad, poses a huge challenge.
Thankfully, the Indian government and institutions have your back with education loan subsidy schemes to ease this financial burden.
Grasping these schemes can pave the way to top-notch education without the worry of financial strain.
Interest subsidy
Central Sector Interest Subsidy Scheme
The Central Sector Interest Subsidy (CSIS) scheme is for economically weaker sections with an annual family income of less than ₹4.5 lakh.
It provides a subsidy on the interest during the moratorium period i.e. course duration plus one year or six months after getting a job, whichever is earlier.
So, students only have to start repaying the principal amount and the interest on it after this period.
Minority support
Padho Pardesh Scheme for minority communities
Padho Pardesh is a government scheme for minority community students with an annual family income of less than ₹6 lakh, offering interest subsidy on educational loans for overseas studies.
This initiative empowers meritorious students from minority communities to access higher education opportunities abroad by eliminating the burden of interest during their study period.
SC/ST welfare
Dr. Ambedkar Central Sector Scheme of Interest Subsidy
The Dr. Ambedkar Central Sector Scheme of Interest Subsidy aims to support SC and ST students by facilitating equal opportunities in higher education, both in India and abroad.
Like CSIS, it provides a full interest subsidy during the moratorium period for courses pursued post 12th grade from recognized institutions.
This ensures financial constraints do not impede the fulfillment of educational aspirations.
Regional assistance
State-sponsored subsidy schemes
Various Indian states offer education loan subsidy schemes to their residents. These schemes differ in eligibility requirements, such as academic performance and type of institution.
Students are advised to check their respective state's education department or official websites for specific details.
With the right research and timely applications, students can significantly reduce their financial strain while pursuing higher education.