A few weeks back, I had an interesting conversation with a close friend of mine on Education loans. I explained my views on how difficult its for any under-privileged student to get Education loans. Reluctant managers , amount of paper work, collateral and what not. I don't mean to say that you drop into a bank and get out with an educational loan. But its a fact that many people have stopped dreaming big because they cannot afford the dreams.
I also informed my dear friend about the plan of providing loan @ 4% interest to students as per the BJP manifesto for Election 2009.
Here are some of the views that my friend had on this issue. I more or less listened to him and didn't come to any conclusions. After a lot of thought. My replies are inline.
1. Who the hell cares!! Dont act like a communist. You were supposedly right wing capitalist.
Oh, Is it Shouldn't the government care about education of its citizens? Don't capitalist countries like USA, Germany award umpteen scholarships to deserving students. Would you term USA, Germany socialistic-capitalistic democracies then?? :)
2. Who the hell came up with 4% number? Yaake helu free ne kotbidtaare. Yaava bhoopa 4% andiddu. You know there is something called repo rate , market dynamics wont allow this to happen ..................
Obviously , I was very ill qualified to take on his understanding of the "market dynamics" , having been working on electronic circuits, this surely had to be my Achilles feet. Should we just stick to a discussion of just numbers? I have no idea, how 4% came in. Say its not 4%, its 5-7%. Isnt that good enough? Do we get to know how each paisa of money that we pay as education cess gets used? What percent of the so-called loan market does education loans constitute to have adverse impact on "market dynamics"?
3. People who can't afford, can't dream big. That's capitalism.
Wow. I am not asking you to spend on someone's education from your pocket dear. If I coerced you then you could blame me for being a communist, Socialist. Isn't it the government's responsibility to aid people who have had good credentials and who can make it big?
Sorry dear. Now look who's behaving like a communist. It's a habit that the communist have to align every view of theirs to their "holy" doctrines, never mind if it's right or wrong. Communists are believed to have jeopardized research on Mendel's genetics because it didn't align with their doctrines.
4. Bank's are money making proposition. It's capitalism.
I didn't know that. :) Why do we have regulatory bodies like the RBI? Why do we even have a government that controls these regulatory bodies? Let's have some capitalistic fun. No frills attached. That's capitalism isn't it?
How valid is it to base every argument on text book definitions? I for one believe that Capitalism is the birth right of every individual, Socialism is an advisory.
I only wish to remind my dear friend that in ancient India, there was no upper limit on the income one could earn. But service to the needed was considered a virtue and its still considered one.
Do we need to make our government just another "money making proposition" ? Or do we need to re-think the definition "For the people, of the people, by the people" ? Or do we need to redefine "people" itself ?
2 comments:
Well you have missed out on a few important details mate.
1. We were talking in context of US education. The risk associated with such loans are definitely higher.
2. Examples of US, Europe will not be useful in the Indian context. The salary hikes, the stock market growth in those places are no way comparable to what the Indians get, though in absolute terms they cannot be compared
3. I will not comment the education cess part, but do not forget your undergrad studies were extremely subsidized.
4. Well what I meant when I said, if you cannot education then don't study was again in reference with people moving to the US. Study in the IISc's, the NID's. the NIFT's!!
5. Look at this, you go to the US, the university makes money, the US govt makes money, the corporates in the US who employ you make money and the banks here will give a risky loan at whatever percentage.
6. Arguments such as govt should take care of its citizens, firstly wow, secondly it does, remember the national defence, the police etc. If performance of them is the issue then you will have to take it up with the right people.
And again I am not taking the banks' side. My suggestion is you are getting loans at good rates, there people who can't even get 0.001% of your loan as credit,and even if they do, at exorbitant interest rates.
P.S: NO political affiliations for this argument!!
Here you go mate
The context is just not education in US, education in general. Education isnt that cheap in India either now.
1. My aunt works in a bank, she has been working in the loans section for a few years now. She has never come across defaulters. Its pretty much the same everywhere else. If statistics speak volumes. Why don't you make things easier?
2. What's that got to do with education?
3. Of course I do remember my education being subsidized. But how does that link here? You probably are a true capitalist and might not be interested in such subsidies isn't it?
4. Why, shouldn't one study abroad? Why should one settle for something lesser? Then why do you guys go ga ga over Naveen Jindal and the likes, who are outside?
5. This sounds so very socialistic dear :) "Risky" loan. Please come up with some facts .
6. Totally unrelated topic. I am discussing this in the purview of education. Lets keep it like that.
7. Your final argument seems very socialistic though , isnt it? :) Decide which side of the river bank you wanna station yourself first.
P.S: What does political affiliation have to do with this? I haven't used it as a tool anywhere.
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