ThePrint ThePrintAM: What has the Parliamentary panel said on dip in education loan accounts?
Dec 10, 2025
A parliamentary panel raises alarms over the declining active education loan accounts in India since 2014. Outstanding loan amounts are surging, attributed to rising education costs. The discussion highlights challenges like accessibility for rural students and a lack of awareness about existing loan schemes. Recommendations include regional-language outreach and extending loan moratoriums after course completion. Additionally, significant implementation gaps are noted, with only a fraction of funds actually disbursed to students, prompting calls for stricter loan guidelines.
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Fewer Students Are Using Education Loans
- Active education loan accounts in India fell from 23.36 lakh (2014) to 20.63 lakh (2025) despite rising totals.
- This suggests fewer students access loans even as education costs surge domestically and abroad.
Outstanding Loans Have Grown Sharply
- Total education loan credit jumped sharply from 99,000 crore (2023) to 1,37,000 crore (2025).
- The committee links this rise to increasing costs of higher education in India and abroad.
Expand Outreach And Institutional Loan Support
- Use regional languages, set up loan centres in institutions, and train counsellors to improve loan access.
- Expand outreach to disadvantaged and rural students so government schemes reach intended beneficiaries.