IIT Admissions: HRD Ministry formulates interest-free loan scheme to offset fee hike

IIT_ARTICLEStudents seeking admission to IITs will now be able to get interest-free loan to balance the fee hike done recently. This scheme was formulated by the HRD Ministry for students who are having difficulty in paying the fee after the hike was announced on Wednesday. However, not every student will be benefitted under this scheme as the same will be provided with a limitation on the annual income of Rs.4.5 Lakh. So, only students from families with an annual income of less than 4.5 Lakh will be able to seek the benefit of this scheme.

According to a ministry statement released this Wednesday, “The existing scheme for providing interest-free loans has a limitation on the annual household income of Rs.4.5 lakh. In view of this, a separate scheme is formulated for providing the interest subvention which is under scrutiny of the finance.”

HRD Ministry had approved a proposal of increasing the annual fee of various IITs in the country from Rs.90, 000 to Rs.2 Lakh. A statement has also been issued by the ministry, saying the tuition fee will be ignored for students belonging to SC, ST, differently-abled categories and those from families earning less than Rs.1 lakh per annum.

The government will provide the interest-free loans to eligible students under the ‘Vidya Lakshmi Scheme.’ The statement released by the ministry also discloses that students from families with an annual income of less than Rs.5 Lakh will not be asked to pay two-thirds of the tuition fee amount.

Many students and their parents who belongs to middle class families and have an annual income of over Rs.5 Lakh per annum, are not happy with the government move.

Admission to IITs is done through JEE Advanced, which was conducted on May 22, 2016. The result for JEE Advanced 2016 was declared on June 12, 2016 on the official website of CBSE. The counselling process for admission into IITs is been conducted by JOSAA. The seat allotment schedule of JOSAA 2016 is available online.

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