'Credit guarantee fund' for education loan defaulters

To deal with cases of education loan default, which add to the burgeoning non-performing assets, the government has proposed to set up a 'Credit guarantee fund'. This initiative  is expected to help enhance the flow of assistance to students.

The new fund plan was released in the UPA government's Report to the People 2012-13. The statement says the focus of government during the 12th Five Year Plan for higher education is expansion, equity and excellence with greater thrust on improving quality in this sector.

A scheme of interest subsidy on education loans to students of weaker sections already exists.

The statement further claimed that under national mission on education through ICT, connectivity to 400 universities and 20,117 colleges has been provided up to April 31. About 89 virtual laboratories have also been initiated in various disciplines of science and engineering through the Internet.