EDUCATIONAL FINANCE CORPORATION OF INDIA

Abstract

India is looking forward to reaping Demographic Dividend, thanks to its current composition of the population where the youth dominate with a good majority. But it all depends on the kind of education these youths get in order to contribute positively. Whether demographic dividend will be a reality or turn out to be a demographic burden will be determined to a great extent by the quantity and quality of education that is provided to these youths. Education, no doubt is the game-changer. Providing education to millions of students is an uphill task. The Government is actively seeking partnership of the private sector and figures indicate that the private sector so far has responded well to this call from the Government. Finance has a vital role to play in the educational sector. So far the Government has been a major provider of funds including to the students studying in Private Unaided Colleges by way of scholarships based on criteria of caste and economic backwardness. However with the kind of demand that exists for education today and the one that is anticipated in the next 10-15 years, it is felt that there is a strong requirement for a dedicated educational funding institution much on the lines of a housing finance corporation. Education is a strategic sector and it definitely calls for a well planned funding both for the suppliers and the consumers of education. This article highlights this need for establishing an exclusive educational funding agency.