INDIA: Student loan scheme announced

India's United Progressive Alliance government has made higher education its thrust area with a view to increasing the gross enrolment ratio to 15% by the end of the 11th plan, reports The Hindu. A key move in this regard was made by Finance Minister Pranab Mukherjee's last week when he announced loans for economically disadvantaged students.

Under the scheme, eligible students will be provided full interest subsidy during the period of moratorium. It will cover loans taken by students from scheduled banks to pursue any approved course of study, in technical and professional streams, from recognised institutions in the country.

Further, the Minister extended the scope of Section 80E of the Income-tax Act, providing tax exemptions for education loans to pursue higher studies in specific areas, to cover all sectors including vocational studies after school.
Full report on The Hindu site