Financing higher education

Education is said to be a basic right everywhere and in every country around the globe but the country is yet to offer all children to have access to education. A section of children is never able to make entry to any kind of school while others fail to make it after the primary education as the harsh reality of poverty forces them to quit education for ever.

Again a good number of students can’t continue after their secondary school education for the same reason though we put the blame on the ability of students without providing them with all kinds of support – from proper teaching method to financial support.

Even those who can somehow manage to make it up to the higher secondary education they also find it difficult to secure a berth at public university where at least they can study on government subsidy. The number of public universities we have in our country fails to accommodate all eligible students depriving them of their higher education.

As a result students desperately try to get admitted into private universities but again they have to face the same hurdle when it boils down to the fact of money essential to run their educational life. Those who are rich enough to pay for their exorbitant admission and tuition fees they can finally pursue their tertiary level education at a private university. But not everybody is lucky to have parental monetary support.

Few people can manage by borrowing from their relatives or well-wishers but a large section fumbles in the dark and become hopeless after they fail to go to any public university as they neither have family support nor can borrow from their well-off relatives or from a benevolent person around them. Only the way left for them is to borrow the money from any bank.

The Business Post on 20 December ran a report on the plight of students intending to pursue higher education either at home or abroad. According to the report in our country a good number of banks are offering such loans to students of tertiary level. The banks include Eastern Bank, BRAC Bank, Uttara Bank, Mercantile Bank, Islami Bank, IFIC Bank, One Bank, NCC Bank, Jamuna Bank and Agrani Bank. The banks are providing a minimum of Tk5 lakh to a maximum of Tk20 lakh to students to pursue higher studies at home and abroad.

The loan is available for a minimum of one year and a maximum of six years with three months moratorium depending on the type of course a student wants to pursue. But the problem is the loans are offered at the same interest rate as is done in the case of consumer loans. The interest rate is nine per cent which most of the students find difficult to pay.

Again allegation is there that students who are in need of the money don’t get the coveted loan. But the developed countries offer such loans on the basis of students’ merit and their job perspective while it is not happening in our country. The loan is granted here depending on the income of parents as banks want to be sure of the repayment.

Enamul Huq, Managing Director and CEO of Dhaka Bank Limited, told The Business Post that he agreed that there were no special privileges when it came to education loans. They are like other consumer loans and the interest rate is also similar.

We believe that the education ministry in collaboration with banks will come forward to look into the matter of higher education of poor students who are unable to pay for their tertiary education both at home and abroad. It should be done given the importance of higher education as only an educated nation can contribute immensely to the country’s progress and prosperity when the time demands.