No proposal to waive off education loans: FM Sitharaman tells Parliament

The government on Monday said there is no proposal under consideration for waiver of education loans.

In the last three years from 2016-17 to March 2019, the amount of outstanding education loans rose from Rs 67,685.59 crore to Rs 75,450.68 crore in September 2019, as per data provided by public sector banks.

More than 90 per cent of these accounts are standard as on March 31 this year, Finance Minister Nirmala Sitharaman told the Lok Sabha.

The minister also said that as reported by public sector banks, no case of suicide by students due to unbearable pressure from banks to repay education loans has been reported.

In a written reply, she said banks have been sensitised to adopt a non-coercive strategy for recovery of education loans.

"Further, there is no proposal under consideration for waiver of education loans," she noted.

According to her, data linking education loans sanctioned by banks with securing of jobs is not centrally maintained.