Parl panel flags crisis in education loans, raps banks for poor disbursal

A parliamentary committee has warned of a “deepening crisis” in access to education loans, saying rising higher-education costs are colliding with shrinking credit availability and inconsistent banking practices that are shutting out students—especially those from poorer and rural backgrounds.

- Vrinda Tulsian

In its report tabled in Parliament on Tuesday, the Standing Committee on Education, Women, Children, Youth and Sports, chaired by Congress leader Digvijaya Singh, noted that the number of active student loans has declined from 23.36 lakh in 2014 to 20.63 lakh in 2025, even as overall outstanding loan value has nearly tripled to ₹1.37 lakh crore. The gap, the panel said, reflects steep fee inflation and shrinking access for families unable to secure bank support.