Study now pay later scheme could replace college reservations
The government’s Rs 4,000 crore megascheme — to which the Planning Commission is now putting the final touches — to subsidise education loans for students from families earning Rs 2.5 lakh a year or less, is a welcome sign of fresh thinking in official quarters on human resources issues. It’s a much better way of improving access to college education than the current approach of caste-based reservation quotas. According to the scheme the government will take over interest repayment on education loans for the ‘moratorium’ period, or the time in between when the student borrows the money, and when he starts work and therefore is in a position to repay the loan. The scheme is open for professional and technical courses at undergraduate or postgraduate levels.
One of its great advantages is that it replaces caste with income as the criterion for receiving support from the government. The arbitrariness of using community-based standards for measuring individual disempowerment has been exposed in Rajasthan’s caste riots, where the Gujjars are threatening turmoil because they have not been deemed worthy of receiving scheduled tribe (ST) benefits. The rival Meenas, who enjoy ST status, are on the other hand happy with the verdict of the Chopra committee that threw out Gujjar claims, as it does not expose them to competition from Gujjars. In this game, a win for one community amounts to a loss for another. That’s a recipe for clash between communities and political instability. Incomebased criteria, on the other hand, are better targeted and no cause for political gripes to anybody.
The other advantage of government subsidies for student loans is that it doesn’t devalue merit in the same way that caste-based reservations do. It still devolves on the student to find admission to the college courses of his choice on merit; admission standards will not be specially relaxed for him. This is particularly important when the Indian economy is facing a skills crunch and the employability of graduates who possess formal degrees is turning into a major issue. The scheme should serve to tap talent that cannot be developed currently because of the modest family background of students. If administered well, it should increase opportunities for youth and help plug the skills gap that prevents the Indian economy from firing on all cylinders.
It is being hoped that the scheme will check the brain drain from the country, whereby Indian students spend more than three billion dollars abroad every year in search of quality education. That will, however, require further measures in deregulating education and allowing excellence to thrive.
Loans for Learning
Labels: Study Loan
Have a room to spare? Govt will help you earn from it
'Bed and Breakfast' scheme gives house owners an income stream
Dilip Dixit is a retired service man who owns a 710 sq ft house in Pune. With space to let, he's hoping to join the country's first-ever `Bed & Breakfast' scheme, which has been launched by the Ministry of Tourism, Government of India.
Inspired by the success of European 'flop-houses' or B&B centres, this scheme is expected to boost the fortunes of property owners like Dixit and of Indian tourism per se, which is growing at 25% annually. The term 'B&B' has its genesis in
Property owners aren't complaining. Says Dixit: "Since I am a retired person, the income would be beneficial to me. The accommodation that I am offering is spacious and clean. Huge hotels charge at the very least Rs 3,000-4,000 per night. The price-tag that I would ask for would be much lesser, say around Rs 500-1,000 per night."
Dixit is cheered by the safety net inherent in a government-led scheme. "The biggest attraction of this scheme is the fact that it comes with government approval stamped on it."
Ministry circles are enthused about the prospects of B&B. Says C Gangadhar, assistant director, India Tourism. The basic idea is to provide a clean and affordable place for foreigners and domestic tourists alike, including an opportunity for foreign tourists to stay with an Indian family and experience Indian customs, traditions and authentic Indian cuisine.
The total number of tourists who visited Mumbai in 1997 was 6.95 lakh, while in 2006 it topped 8.25 lakh.
How the scheme works
Seems like there will be different beds and breakfasts. The B&B scheme will be classified as follows: Standard and Premium. The ministry has formed a Regional Classification Committee, which will inspect and classify the B&B establishments based on the facilities, area and services offered. The committee consists of principal secretary (Tourism State Government), regional director (India Tourism), representatives from IATO, representatives from State Tourism Department etc. The downside is that there's a deposit fee of Rs 3,000 (standard) and Rs.5000 (premium) that is charged with the submission of the form.
Says Dixit: "If the ministry rejects the form on the basis of a technicality, the amount that I have paid will not be refunded. I would have to look at the check-list a lot more carefully."
Explains Gangadhar: "It is the house-owner who decides what amount is charged from a tourist for x number of days. We only intervene in cases where we feel that the rates are over-the-top."
"The fact that a premise is available as B&B is communicated via our 23 offices in
Says Gangadhar: "It helps us understand just how many residents are open to the idea. This form of accommodation has become a necessity in metros. It's an entirely new concept and we are getting a lot of queries. The idea is that the residents should maintain their way of life, and yet house tourists."
If this home tourism effort takes off, it could be a cost-effective option for tourists and a golden goose for retired middle-class folks like Dixit. Indian tourism could also get quite comfortable with such room service.
Labels: Earn From Home