IIT Delhi asks Government to Give Students Loans Based on Future Income
IIT Delhi preaches financial autonomy for all the IITs on the same line as IIMs. Proposes the government set up Loan facilities based on student’s future income for reliving IITs from bearing the larger amount of tuition fees.
The Indian Institute of Technology - IIT Delhi has requested the government to provide students with loans based on their future income. This method is followed in Australia widely. The state gives the students loan to study in the top university to repay when they get a job. This suggestion of IIT Delhi speaks for increased financial autonomy for all the 23 IITs in India. As per the sources suggest, the Ministry of Human Resource Development (MHRD) is now reviewing the proposal and to reflect soon.
The IIT Delhi has proposed the loan programmes on the same line with Australia’s HELP (Higher Education Loan Programme) scheme. In the country, when the student is hired by a company and starts earning above a fixed threshold, the loan amount starts getting deducted from the candidate's salary monthly. This is highly different than the mortgage-based loans where it becomes difficult for the recipient to pay back regardless of his/her income.
The Ministry of Human Resource Development has been proposed by IITD to set up a committee like HEFA (Higher Education Financing Agency). The agency would work to provide full or partial financial assistance based on the need
The proposal made by IITD says that students, after passing from IITs should not run towards high paying jobs only but contribute to research, civil services or follow the personal passion. A huge burden of loan limits the career choices of a student and reduces risk-taking behaviour for progress. This trend is seen in loan based institutes such as IIMs in India.
The IITs spend close to Rs 6 lakh on educating one undergraduate student every year. The student, however, pays only Rs 2 lakh per annum as tuition fee. Moreover, almost half the BTech students at IITs under the SC/ST category are exempt from paying tuition fees. The institutes bear the difference between actual cost and income through their internal accruals and block grants received from the government.
In the case of IITs spend around 6 lakh per year to educate an undergraduate B.Tech student and the student pays 2 lakh per year only which is three times lesser than the contribution made by the institutes. Adding to it, the economically weaker and SC/ST students are exempted from paying any tuition fees which makes up almost half of the classes. The institutions bear the difference between the income and actual cost through block grants received from the government and their internal accruals.
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If MHRD grants the proposal made by IIT Delhi, the IITs will turn Autonomous in terms of financial affairs. IITs will also have more administrative, financial and academic autonomy.
With this proposal, the PG (postgraduate) fee review has also been suggested the institute. The M.Tech students in IITs are given assistantship every month and charged a nominal fee. The IITD has proposed to make M.Tech Courses like MBA and go for industry sponsorship.
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After the New Act for IIMs came to be which gave them never-before like autonomy and independence, the demand for financial independence is being raised by all the IITs as well.
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