Education finance is financial aid resources given for education purposes.To plan for future we need proper education and that can be done in two ways by own funding or if someone else funds. Education financing gives us a way to gain education and repay it with our own salary.
Types of education loans in india.
Location based loans
Domestic education loans that are meant for students pursuing education in their own country itself and study abroad loans where a student pursues education abroad and need to pay fees for it.
Course based loans
Undergraduate loans where financial aid is provided to complete an undergraduate degree. Similarly there are graduate and career education loans for particular courses.
Loans based on collateral
Loan against property is where property of a student is kept as a mortgage in case of failure in payments. Similarly there are loans given against fixed deposits, securities etc. Also if a third party guarantees it the loan can be given.
There are also unsecured loans based on parents financial position.
Repayment of loan
These loans like all other loans are to be repayed with interest. But here student has an option of repaying it from his or her salary after employment.
Union budget 2020 on education.
In the Union Budget 2020, Finance Minister Nirmala Sitharaman has suggested a new education policy, besides several measures that will bring in a paradigm shift in the educational systems and creation of employment in India and abroad. “By 2030, India is set to have the largest working-age population in the world. Not only do they need literacy but they need both job and life skills,” she said in the budget speech.
The budget earmarked Rs 99,300 crore for education sector in 2020-21 and about Rs 3,000 crore for skill development. In the previous Union Budget, the government’s allocation for the sector was Rs 94,800 crore.
“I feel the rise is just not enough to match the current need. Considering the option of External Commercial Borrowings (ECBs) and Foreign Direct Investment (FDI) for education sector was much-needed. The government should look beyond ECB & FDI but also attract more domestic investments and talents”, said Amol Arora, Vice Chairman and managing director, Shemford Group of Futuristic Schools.
The FM said about 150 higher educational institutions will start apprenticeship embedded degree/diploma courses by March 2021 and will start a programme whereby urban local bodies across the country would provide internship opportunities to fresh engineers for a period up to one year. To create infrastructure in education sector, steps would be taken to enable sourcing External Commercial Borrowings (ECB) and FDI so as to able to deliver higher quality education. Institutions that are ranked within top 100 in the National Institutional Ranking framework will start degree level full-fledged online education programme for students of deprived section of the society.
“The major step towards boosting online education is the introduction of degree-level full-fledged online education programme. It would be a game changer as education sector is under focus and the introduction of online courses and degrees will definitely proved to be a big step towards digitalisation of Indian education system”, said Akhand Swaroop Pandit, CEO and Founder of online learning platform Catalyst Group.
The budget also suggested under the ‘Study in India’ programme, Ind-SAT, to be held in Asian and African countries to benchmark foreign candidates who receive scholarships for studying in Indian higher education centres. A National Police University and a National Forensic Science University is another proposal in the budget.