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Funding education
Business Standard
|November 08, 2024
Easy financial assistance is not enough
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The debate on using public money to fund higher education is not new. While most of the gains from higher education accrue to the person receiving it, it also produces positive externalities including direct economic gains, higher research and innovation, and a more skilled workforce in the economy. Given the costs involved in higher education, especially STEM (science, technology, engineering and mathematics) courses, students often have to pay more. In this context, the Union Cabinet's recent approval of the PM Vidyalaxmi scheme must be welcomed. Covering more than 2.2 million students, the financial-assistance scheme will provide educational loans to meritorious students who are admitted to higher educational institutions but face financial constraints. To begin with, the scheme will apply to the top 860 quality higher educational institutions in the country.
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