Parliament Question: Rising cost of higher education and relief on education loans

GOVERNMENT OF INDIA MINISTRY OF EDUCATION DEPARTMENT OF HIGHER EDUCATION RAJYA SABHA UNSTARRED QUESTION NO. 2924 ANSWERED ON 18.03.2026 Rising cost of higher education and relief on education loans 2924 # Dr. Sandeep Kumar Pathak: Will the Minister of Education be pleased to state: (a) the extent of increase in fees during the last three years in engineering, medical and Central and State Universities, year-wise; (b) the guidelines issued by Government to regulate or control the rising fees in higher education institutions; (c) the current average rate of interest on education loans and whether there is any plan to reduce the interest rates or enhance interest subsidy for middle-class and economically weaker students, if so, the details thereof; and (d) the future policy of Government to ensure accessible and affordable higher education for all sections of society, the details thereof? ANSWER MINISTER OF STATE IN THE MINISTRY OF EDUCATION (DR. SUKANTA MAJUMDAR) (a) to (d): Education being in the concurrent list of the Constitution, Centre and States are equally responsible for providing quality education to all. Fees in State Universities are decided by the State Government concerned in accordance with the provisions of their Act and Statutes. Further, all Central Universities are statutory autonomous organisations established under the respective Central Acts of Parliament and governed by the provisions of the Acts and Statues, Ordinances made thereunder. The data regarding fee charged by the Central Universities is maintained at institution level. However, the Central Universities charge fees at minimal rates as they are fully supported through grants-in-aid by Ministry of Education, Government of India. The grant-in-aid to Central Universities has been increased more than 3 times from Rs. 5634.85 crore in FY 2014-15 to Rs. 16990.07 crore in FY 2025-26. The University Grants Commission (UGC) has notified the UGC (Regulation of Admission and Fees in Private Non-aided Professional Institutions) Regulations, 1997, which provide broad criteria for fee fixation. The fee structure for MBBS courses in Government and private medical colleges varies across States and is determined in accordance with the guidelines issued by the respective State FeeRegulatory Authorities. The fee structure in Government medical colleges is subsidized in order to enhance accessibility. As far as technical institutions is concerned, the All India Council for Technical Education (AICTE), a statutory body under the Ministry of Education, grants approval for conducting courses in Technical Education at diploma, undergraduate and post graduate levels to Technical Institutions. AICTE as per its Approval Process Handbook 2024-27 has stipulated that the Institutions shall adopt the fee fixed by the concerned State Fee Regulatory Authority. Further, to make higher education affordable in institutions like Indian Institutes of Technology (IITs) and National Institutes of Technology (NITs), relaxations in tuition fee of Under Graduate (UG) program is provided not only to the socially weaker sections but also to the economically backward sections of the society. This includes complete fee waiver for Scheduled Castes/ Scheduled Tribes and PwD students & full remission of fee for economically backward students (whose family income is less than Rs. 1 lakh per annum) and also 2/3rd remission of fee for other economically backward students (whose family income is between Rs. 1 lakh to Rs. 5 lakh per annum). Government is implementing various scholarship/fellowship schemes like PM-USP Central Sector Scheme of Scholarship, Junior Research Fellowship in Science, Humanities and Social Sciences, National Scholarship for Postgraduate Studies, Ishan Uday Special Scholarship Scheme for North Eastern Region etc. for providing financial assistance to all categories of students subject to extant scheme guidelines. From academic year 2022-23 to 2024-25, more than three crore scholarships have been provided and Rs. 30246 crore has been released to the students of higher education under various schemes. Also, to ensure that no student is denied the opportunity to pursue higher education due to financial constraints, Government of India has started the PM Vidyalakshmi Scheme. Under the scheme, collateral-free and guarantor-free education loan is provided to all the students who get merit based admission in top Quality Higher Education Institutions (QHEIs) and who desire to avail the education loan. In addition, for students with annual family income of up to Rs. 8 lakhs, a 3% interest subvention during moratorium period (course period plus one year) is also provided for education loans up to Rs. 10 lakhs. ***