In the last few decades, India has experienced several shifts in the policies pertaining to the financing of higher education. These shifts include a move from public financing to keep pace with the expansion requirements of the sector; the strengthening of market forces in higher education both through privatisation of public institutions and operation of private institutions; and a move from the financing of institutions to the financing of students. The Centre for Policy Research in Higher Education (CPRHE) has initiated major research activities to understand how the recent changes have affected the financing of higher education in India and how the higher education institutions cope with and respond to these changes. India Higher Education Report 2018, the fourth volume in the series, presents this study to provide a comprehensive analysis of financing of higher education in India. This book investigates the changing dynamics and related key issues including state–market dynamics, university–industry linkages, foreign aid, institutional strategies to overcome shortages in funding, issues with self-financing courses, educational loans and fee reimbursement schemes, expansion and financing of private higher education.
Chapter 10: Student Mortgage Loans vis-à-vis Income-contingent Loans: Problems and Prospects
Student Mortgage Loans vis-à-vis Income-contingent Loans: Problems and Prospects
The importance of higher education in an emerging economy like India cannot be overemphasized, especially at the current juncture when the country can potentially reap unprecedented demographic dividends by equipping the younger generation with appropriate skills. What is needed is to formulate policy and design strategies for massifying higher education. Financing an expanding higher education system remains a challenge in India. The pervasive inequality along with imperfect (or missing) credit market implies that privately funded education remains the prerogative of the rich. On the other hand, the oft-prescribed public education or education-subsidy policy is also not sustainable ...