Introduction

Education has been made familiar to be a right and a socio-economic mobility in India. The equal-access principle of higher education is highlighted in the Right to Education (RTE) Act, 2009, in the National Policy on Education (1986 and later revised in 1992) and in the much later National Education Policy (NEP) 2020. However, one of the most significant challenges is the cost of college education especially to the students who have a socio-economically poor background.

Here, the Student Credit Card Scheme (SCCS) proposed by Bihar in October 2016 was a part of the larger scheme, the Saat Nischay Yojana (Seven Resolves), an ambitious development scheme announced by the state government. The scheme is an example of a state-level effort made to close the financial disparities in tertiary education and can be readily used as a case study in the realms of governance, government policy, and social welfare by UPSC aspirants.

Objectives of the Scheme

The main aim of the Student Credit Card Scheme is to make higher education affordable to students so that they are not deprived of higher education due to financial constraints. The government realized that vast numbers of Bihar youth either stopped their studies after Class 12 or went to other states to pursue low-cost education and employment. The scheme aims at:

1. Enhance the Gross Enrolment Ratio (GER) of higher education.

2. Lessen school drop out rates.

3. Professional, technical and vocational training for the youngsters of the state.

4. Enhance the capacity building of human capital to facilitate the long term economic development of Bihar.

Features of the Scheme

1. Loan Amount: Students can avail themselves of a loan of up to Rs. 4 lakh to pursue higher studies in some of the well-known institutions in India.

2. Interest Rate: The scheme offers loans that are very subsidized. The effective interest rate among the girls, transgender students, and differently- able students is 1%-4%.

3. Course coverage: Loan is applicable in professional courses (engineering, medicine, management, law), technical diplomas and general graduation and post-graduation courses.

4. Repayment Terms: The student must start repaying one year after completion of the course or after getting a job, whichever comes first.

5. Mechanism of implementation: The scheme is carried out by a nodal agency- Education Finance Corporation (EFC) and brings about coordination among banks, colleges and district level officers.

Achievements and Data

The scheme has a tremendous outreach since its inception. A report of the state government states:

1. As of 2022, more than 1.2 lakh students have benefited under SCCS.

2. A huge proportion of beneficiaries are first-generation learners in rural and semi-urban areas.

3. The scheme has also enhanced greater enrolment in technical and professional education, where the cost is relatively higher.

As an example, students in the Gaya district have recorded having been able to enroll in engineering and nursing courses that would have been too expensive to attend. There has also been a significant growth in the enrolment of females, which is in line with the objectives of gender equity in education highlighted in SDG 4 (Quality Education).

Policy Significance

Student credit card scheme is an example of how the states can be used to supplement national education efforts using local interventions. Regarding the preparation for UPSC, it is related to various themes in General Studies (GS) Papers II and III:

1. Governance and Welfare Schemes: Refers to the cooperative arrangements between the state governments and the banks.

2. Education Policy: It is in line with NEP 2020 in its focus on universal access to higher education.

3. Social Justice: Promotes equity by addressing the disadvantaged groups including girls, students in rural areas and in poor households.

4. Economic Development: Accumulates human capital, which is essential in the transformation of Bihar to a knowledge-based economy rather than an agrarian economy.

Implementation Problems

Nevertheless, the SCCS has some challenges, although it has been successful:

1. Consciousness Gap: There are a lot of students, particularly in remote locations, who are not aware of the scheme.

2. Banking Bottlenecks: Loan sanctioning and disbursal delays by the banks have an impact on admissions.

3. Skills Mismatch: As access to education increases, it is important to make graduates employable.

4. Fiscal Burden: Maintaining subsidized rates of interest demands a heavy budgetary financing by the state exchequer.

Way Forward

In order to increase the effectiveness of the scheme, policymakers can take into consideration:

1. Enhancing digital awareness initiatives and district facilitating centres.

2. Better coordination of the colleges, nodal agencies and banks.

3. Connecting SCCS beneficiaries to skill development opportunities as a part of the Skill India Mission to enhance employability.

4. Frequent checks and reviews by third parties to determine results in regard to employment and income mobility.

Conclusion

The Bihar Student Credit Card Scheme is evidence of how innovation at the level of the state can directly solve the structural obstacle to education. Though the implementation still has some challenges, its effect of raising enrolment, gender equity, and enabling the disadvantaged youth to prevail makes it a model that should be emulated by other states.

To those who aspire to take the UPSC Civil Services Examination, the SCCS is a great example of welfare governance, with its focus on the overlaps of education policy, social justice, and economic development, which are three essential themes in prelims and mains.