The present interest rate for education loan is between 10—12%. According to new proposal of National Education Finance Corporation (NEFC), the new education loan interest rate will be lower and the duration for repayment of the loan would be more. In this context, the Human Resource Development Ministry will ask states to contribute towards making education loans cheaper as proposed under the National Education Finance Corporation (NEFC). The ministry official said, “State government run educational institutions will also benefit from the NEFC, so the centre will seek cooperation from the states.”
The Indian Institutes of Technology have rejected the idea of selecting the candidates through a Common Engineering Entrance Test for all engineering colleges. HRD ministry-appointed committee said in its report, “Scores in a well-designed National Aptitude Test should be used to capture parameters of interest such as raw intelligence, aptitude, general awareness, comprehension and written communication skills. NAT should not require extensive preparation and coaching. The questions should be designed in such a way that it would not require inputs beyond plus 2 level.” To make the exam process more friendly for students, the committee has proposed to make NAT an online test conducted throughout the year.