Ra­jan asks stu­dents to be wary of ‘use­less de­grees’

RBI guv calls for ef­forts to make ed­u­ca­tion af­ford­able

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Cor­re­spon­dent let­ters@hin­dus­tan­times.com

Re­serve Bank of In­dia gover­nor Raghu­ram Ra­jan said on Satur­day that ef­forts should be made to make qual­ity higher ed­u­ca­tion af­ford­able and cau­tioned stu­dents to be care­ful of “un­scrupu­lous schools” that left alumni with high debt and “use­less de­grees”.

Speak­ing at the con­vo­ca­tion cer­e­mony of Shiv Nadar Univer­sity, Ra­jan said while banks must be care­ful to en­sure that stu­dent loans were re­paid in full, there needed to be con­ces­sions for those who fell upon bad times or opted for public ser­vice jobs.

“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,” Ra­jan said.

Banks’ bad loans have be­come a po­lit­i­cally sen­si­tive is­sue af­ter liquor baron and MP Vi­jay Mallya left the coun­try in March with un­paid debt of Rs9,400 crore out­stand­ing against his

now de­funct avi­a­tion com­pany. Ex­perts fear the scale of the bad debt prob­lem could be larger than pub­licly known. Mid­dle-class stu­dents com­monly ob­tain hefty loans to fund higher ed­u­ca­tional as­pi­ra­tions.

Ra­jan said even while in­equal­ity be­tween coun­tries was di­min­ish­ing, in­equal­ity within coun­tries was ris­ing and that free mar­ket was not “fair”, say­ing even well-run mar­ket economies seemed to be favour­ing those who al­ready had plenty. CON­TIN­UED ON P7

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