- RBI Governor Raghuram Rajan cautioned students on education loans
- Dr Rajan was addressing Shiv Nadar University convocation
- He emphasized on making high quality education more affordable
Addressing a gathering of students at a university convocation, the RBI Governor said, "Private education across the world is expensive, especially in high-quality research universities, and getting more expensive all the time."
Mr Rajan emphasised the need for a multi-layered improvement in primary education to job-seeking stages. He said, "We have to work to provide effective access to schooling and healthcare for all, a non-discriminating job market with many jobs, equal opportunities for further advancement regardless of gender, race or background."
Underlining the problem with the education system, Mr Rajan said, "The critical resource, good professors, is in short supply. We also should make sure that unscrupulous schools do not prey on uninformed students, leaving them with high debt and useless degrees."
He suggested student loan as a solution to the issue but advised that there is a student loan problem in the US and that should not get created in India.
"We have to be careful that student loans are repaid in full by those who have the means, while they are forgiven in part for those who fall on bad times, or those who take low paying public service jobs," Mr Rajan said.
Speaking on the Indian economy, he said, "India's growth is great, I have no problem with it... But the best is yet to come." Earlier, Mr Rajan was criticised for calling India a one-eyed king in the land of blind.