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Universities Must Have Diversified Financial Model, Can Implement ‘Study Now-Pay Later’ Scheme: Former IIT Delhi Director

By: Education and Careers Desk

Trending Desk

Last Updated: July 15, 2022, 17:20 IST

New Delhi, India

Former IIT Delhi director said institutions need to have a diversified financial model (File Photo)

Former IIT Delhi director said institutions need to have a diversified financial model (File Photo)

The former IIT Delhi director said that a "Study Now- Pay Later" scheme similar to the Australian Higher Education Loan Programmes (HELP) could be an "excellent" one

Former director of the Indian Institute of Technology (IIT) Delhi, Prof V Ramgopal Rao has advocated for a “Study Now- Pay Later” inspired financial model for publicly funded universities in India. Rao, in a tweet, said that with the expansion of higher education in India, the model of grants for public universities in India was not feasible and an alternate source of financing was needed. “Institutions need to have a diversified financial model for the sustenance of their activities growth and excellence,” his post read.

He said that the present government grant model must take into account the number of students, the cost of education in the institutes, competitive research grants earner, patents filed, royalty earned and other such factors should also be considered while deciding on the grant for HEIs.

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Rao added that a “Study Now- Pay Later” scheme similar to the Australian Higher Education Loan Programmes (HELP) could be one of the options. HELP are interest-free loans given to students for completing higher education. The former IIT director added that the scheme was “excellent” and must be considered for higher educational institutions in India.

While the loans are usually interest-free, the outstanding amount is indexed annually by the Consumer Price Index (CPI) to maintain the real value of the debt. The borrower of loans under HELP are required to repay their loans only when their taxable income reaches a certain threshold. The rate at which the debt is repaid rises according to the taxable income, he added.

In an earlier post, Rao had slammed private universities for paying their faculties poorly. “Faculty salaries in private universities is an issue that needs to be addressed in India. Vast campuses, fancy buildings and TV commercials don’t make a great #university. It’s the #FACULTY. Most of them aren’t even paying 7th pay commission salaries, which is atrocious,” he tweeted. Tagging the official pages of UGC, Rao requested a uniform paying standard should be enforced to ensure that quality faculty is available in private universities as well.

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first published:July 15, 2022, 17:16 IST
last updated:July 15, 2022, 17:20 IST