EDUCATION LOAN - A PERSPECTIVE
A few years back there was a huge uproar in Kerala when a bank decided to sell the non performing education loan portfolios to a private asset management company. Neither the borrowers nor the public have any moral right to obstruct the sale as it was a commercial decision by the bank on the quantum of NPA to clean up the balance sheet. If the borrowers were frightened with that development, they should have paid back the loan. The media, politicians and the public all - voiced their concern in the bank's decision to sell the NPA portion of the educational loans to a private AMC. The genesis of the problem is something that require a deeper understanding. This write up is an attempt to look into various actions of the governments at various levels over the years which brought things to head. The University education was mostly a state owned and state funded one with most of the universities set up by the state till about 1980s save for a few in every state. ...