Educational standards across the globe have matured differently. While the Indian system relies on theoretical expertise, the West emphasizes practical knowledge. No educational system in the world is perfect but in today’s scientifically and technologically advanced world, practical expertise has become more of a necessity than a requirement, something the Indian system fails to fulfil.

The western world appeals to the student as it satiates his hunger to learn and apply technical know-how.

The problem lies in the fact that the infrastructure the student is going to get to work with in the West, although enviable, comes at a huge price, which is often unaffordable to the common Indian student. He or she then resorts to loans..

The good part of an educational loan is that the student has to pay it off only once he or she begins to earn. But there is a flipside too. Students are often under enormous pressure right from the start of their academic pursuits abroad and often end up faring badly or losing out on lucrative job offers when they are unable to handle the pressure. Vijay Kumar, Branch Manager of a private bank, says, “There are a lot of applications we receive for overseas education funding but we process and grant loans only to those who we think can repay our loans and can handle the pressures of a loan.”

Sanjiv, an employee of the loan division of a private bank, adds, “The interest rates are very nominal and working there after studying abroad makes it even more easier for the students to clear their loans. There have been very few cases of defaulters of educational loans.”

Sai Srinivas, a student who returned after pursuing a degree abroad, says “It was easy for me to obtain an educational loan and I am well on the verge of paying it off.”

But not everyone would find it as easy as Sai did.

Another student, Vamsidhar Reddy, who is now working abroad says, “I had a tough time acquiring a loan for my studies. Finally when I did manage to get one, it was at a very high interest rate.” This is the true picture of many students, who in desperation to study abroad and realise their dreams, fall in the trap of the banks providing loans at a high rates of interest.

A financial advisor to a private company, Gopala Krishna Penumarti, says, “One solution to this menace would be regularising the rate of interest at which banks offer educational loans.”

It needs to be seen in the near future if banks will sympathise with the plight of Indian students trying to pursue studies abroad and regularise interest rates or if students will continue being burdened by the costs of education.

(Udita has a BA (Honours) degree in Journalism from Kamala Nehru College, Delhi University. She now studies at IIJNM, Bangalore.)

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