Budget 2024: Study in India & get Rs 10 lakh cheap higher education loan

The Union Budget, presented by FM Nirmala Sitharaman, revealed a mixed bag of allocations for the education sector, with some areas receiving substantial increases while others faced cuts. The minister announced a significant increase for PM Poshan scheme and govt support for loans up to Rs 10 lakh for higher education in domestic institutions.

Govt announced plans to upgrade 1,000 Industrial Training Institutes (ITIs), aligning course content with industry skill requirements. Furthermore, the Budget aims to provide internships to one crore youth, with interns receiving a stipend of Rs 5,000 and a one-time assistance of Rs 6,000. The costs for this initiative will be covered by companies through their corporate social responsibility (CSR) funds.

The PM Poshan scheme received a significant boost of over Rs 800 crore, with its allocation rising from Rs 11,600 crore in 2023-24 to Rs 12,467.4 crore in 2024-25. This increase aims to enhance nutritional support for school children.

Centre's total allocation for education, employment, and skill development stood at Rs 1.5 lakh crore. This comprehensive Budget includes financial assistance for student loans, digital learning, and skill development initiatives. Govt will provide loans up to Rs 10 lakh for higher education in domestic institutions, with e-vouchers offering a 3% interest subvention to 1 lakh students annually.

"The 3% interest subsidy will reduce the overall cost of the loan for students, making higher education more affordable and decreasing the long-term financial burden on them. While this initiative encourages students to study in domestic institutions, it will potentially improve the quality and reputation of local universities and colleges as well," said Prof Manojranjan Nayak, founder president of Siksha 'O' Anusandhan, Odisha.

Grants for central universities saw a significant increase of over Rs 4,000 crore, bringing the allocation to Rs 15,928 crore for 2024-25. Additionally, the FM announced the establishment of a new medical college in Bihar, enhancing the region's healthcare education infrastructure. Digital learning and artificial intelligence (AI) also received significant attention. The budget for Centres of Excellence (CoE) in AI was increased from Rs 35 crore to Rs 255 crore, underscoring govt's commitment to advancing technology-driven education.

Student aid for higher education saw an enhancement of Rs 493 crore, up from Rs 1,320 crore to Rs 1,813.2 crore. Additionally, funding for research, innovation and apprenticeships was prioritised, with an increase of Rs 162 crore for research (from Rs 193.4 crore to Rs 355 crore) and a boost in National Apprenticeship Training Scheme from Rs 460 crore to Rs 600 crore. On the flip side, the budget for education saw a reduction of Rs 9,090.4 crore from the revised estimate of 2023-24, bringing the allocation down to Rs 1,20,627.8 crore for 2024-25. This 6.8% increase from the previous year's Budget estimate still reflects a reduction when considering the revised figures.

Welcoming Budget 2024-25 as pivotal milestone on India's path to becoming a developed nation by 2047, Union education minister Dharmendra Pradhan said the document is a testament of govt's relentless focus and concrete measures for the well-being and empowerment of 'garib, mahila, yuva and annadata'.


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