The Centre is working on the final contours of a “students’ loan” programme which will be based on economic, rather than caste, criteria. As per the scheme, all students — whether they belong to the general or OBC category — will be eligible for the loan as long as they don’t fall in the “creamy layer”.The scheme, which is expected to be announced by Prime Minister Manmohan Singh on August 15, is likely to raise many eyebrows, especially among the pro-creamy layer votaries within the UPA Government.The key feature of the scheme will be government subsidy, which is expected to bring down the interest to one-third the existing rate for economically weaker students. As reported in The Indian Express earlier, the Government will also act as guarantor for these students who cannot afford a collateral.The loans will be available to students pursuing higher or professional education. According to the National Commission for Backward Classes, children of parents whose annual income is less than Rs 2.5 lakh qualify as non-creamy layer. Moreover, if the parents are Class I officers, or hold constitutional posts like judges, the children are categorised as creamy layer.Earlier, UPA allies had forced the Government to extend the benefit of the 27 per cent OBC quota in higher educational institutions to the creamy layer students as well.In its Common Minimum Programme, the UPA has committed to “ensure that nobody is denied professional education because he or she is poor.”
