Chapter 12: Scholarships, Fellowships and Education Loans

Introduction

Financing the cost of education remains one of the biggest concerns of parents. As long as higher education, including engineering and technology and medical and dentistry courses was highly subsidised by the government, the money required was not too much even for studying institute prestigious institutions. Parents of even moderate financial means could somehow manage to bear the burden. But no longer. In the post-liberalisation era, more and more educational institutions have come up in Uttar Pradesh, mostly as private ventures, which receive little or no support from the government. These institutions are required to manage their affairs by generating finances by charging higher tuition fees. The pernicious “capitation fee” system also came into practice in a big way in institutions offering professionals courses needing the intervention of the judiciary to introduce two fee structures-one for “free seats” and the other for “payment seats”.

The Ministry of Human Resource Development had been planning to increase tuition and other fees from the 2000-01 academic sessions in central universities. Even the financial support by the government to prestigious institutions like IITs was drastically slashed, forcing them to hike tuition fees. Many universities and colleges introduced “self-financing” or “self-supporting” courses for which students are required to pay tuition fees at higher rates. The spiralling inflation adds to the miseries of parents.

Further, studying abroad has become a craze even among the students belonging to families in the middle income group. Because of all these development in the last one decade or so, the need for additional financial resources to defray the cost of education is now felt more than ever before. Many parents are forced to sell-off their movable and immovable assets to pay for the education of their children.

Traditionally, scholarships, fellowships, stipends, fee concessions and freeships, mostly linked to merit of students and their financial means, to a small extent, mitigated the hardships of students. Both the Central and State governments have also introduced several schemes to support the education of SC, ST and physically handicapped students. However, the demand for such assistance far outstrips the availability. There are not many philanthropic organisations and industrial establishments which extend financial help to the needy and meritorious students. The culture of what is known in the USA as “alumni giving” (the alumni making financial contributions to their alma mater) is conspicuous by its absence.

The National and External Scholarships Division of the Department of Secondary Education and Higher Education (Ministry of HRD) administers scholarships and fellowship programmes for further studies and research in different universities and institutions in India and abroad. They include programmes sponsored by the Government of India and those offered by foreign countries. Information about them has been given in the relevant sections. The fellowships are mostly awarded for higher studies and research. There are certain courses at the postgraduate level in number of institutions for which fellowships and stipends are provided to students. For example, stipends are available for deserving candidates for all the courses offered byteh Indian Statistical institute. All the candidates admitted to the Fellowship Programme of Indian Institute of Management, Calcutta is given scholarships ranging between Rs.5, 000 and Rs.6, 000 per month.

The sources of information about the availability of financial support are also inadequate. Two important sources are 1. Universities Handbook and 2. Scholarships for Study Abroad and at Home, both published by the Association of Indian Universities. The Universities handbook provides for each university and university level institutions, a brief account of the scholarships and free-ships available for education at different levels.

It is necessary to point out those advertisements for awards of talent scholarships of dubious nature often appear in national newspapers. The concerned organisations conduct examinations for selecting students. Several press reports suggest that some organisations might have motives other than philanthropic, behind such gestures. For example, and advertisement published in several national newspapers, announcing “National Talent Scholarship Award 2000-2002” for students “studying in any schools of (sic)” promised that students who qualify on (sic) this examination get Rs.15,000 yearly up to Master degree every year (sic). As regards examination centres, students are assured that they would “get nearest centre on (sic) their own State”. But here is a catch. The candidates are required to dish out Rs.300 as examination fee! Students should not fall prey to such ‘philanthropic’ gestures.

This Chapter gives information about scholarships and fellowships and educational loans collected from different sources arranged in four sections. Viz.,

1. Scholarships & Fellowships fro Study in India, 2. Scholarships & Fellowships for Study Abroad, 3. Financial Supports for SC/ST Students and 4. Educational Loans. The lists in the Annexure do not claim to be exhaustive.

Scholarships & Fellowships for Study in India

Lists of scholarships and fellowships for study in India have been given in three annexure:

Annexure 1: Doctoral and Postdoctoral Studies – Science and Technology.

Annexure 2: Doctoral and Postdoctoral Studies – Social Sciences and Humanities.

Annexure 3: Postgraduate, First Degree and School Level Studies.

Annexure 4: Scholarships & Fellowships for Study in Abroad

Sources of Information: Financial assistance for study abroad is available in the form of scholarships, fellowships, travel grants and loans. There are several authoritative sources of information about them. A brief account of some of the important ones is given below:

General: 1. Scholarships for Study Abroad and at Home. (Association of Indian Universities). The 1997 edition of the book contains two sections: A. Scholarships for Study abroad, B. Scholarships for Study at Home. The first section lists in two sequences scholarships offered by foreign governments and scholarships and fellowships offered by Commonwealth countries, 2.Study Abroad: (UNESCO). First published in 1948, this directory is compiled by UNESCO’s International Bureau of Education and the Division of Higher Education every two years. It is in two parts. The first part lists International scholarships and courses, arranged in alphabetical order of contributing International organisations. The second part lists national scholarships and courses by countries and territories.

For each country three categories of information are provided; A. general information, B. scholarships (by alphabetical order of contributing organisation), 3. The association of Commonwealth Universities (John Foste House, 38 Gordon Square, London, England WCIH OPE) brings out four publications listing various awards available in the universities in Commonwealth Countries: 1. Awards for first degree study at Commonwealth Countries, 2. Awards for postgraduate study at Commonwealth Countries, 3. Awards for University administrators and librarians and 4. Awards for university teachers and research workers. The Commonwealth Secretariat (Marlborough House, Pall Mall, London SWIU 5HX) publishes and annual report, Commonwealth Scholarships and Fellowship Plans which is also a good source of information.

Britain: Study in Britain (British Council division). The publication, updated periodically, contains five categories of information: A. awards administered jointly by the British Council Division and the Ministry of Human Resource Development, Government of India, B. British Chevening Scholarships, C. Other Shared Awards, D. Scholarships and Fellowships offered by British Educational Institutions and E. Other Awards.

USA: 1. Peterson’s Scholarships for Study in the USA and Canada: The publication which is updated annually provided complete profiles of over 1100 award programmes, scholarships, fellowships, grants, etc., that are specifically available to individual International students. Besides, it gives essential information for International students on financing their studies in the US, 2. Scholarships and Grants for Study or Research in the USA - a Scholarship Handbook for foreign Nationals (American Collegiate Service), 3. Funding for US Study – a Guide for Foreign national (NY Institute of International Education, and 4. a complete guide to scholarships for International Students in the USA (Philadelphia, Penn., International Student Information Agency).

Germany: DAAD (Deutscher Akademischer Austauschdients) or German Academic Exchange Service (176 Golf Links, New Delhi-110003) sponsors academic cooperation, especially through various scholarships and fellowships, for foreign scholars to pursue higher education in over 300 institutions of higher education across 16 Federal States in Germany. The award schemes are operated in Indian in cooperation with the External Scholarships Division in the Department of Secondary Education and Higher Education. DAAD also provides necessary information on request.

Scholarships and Fellowships: The scholarships and fellowships for study abroad awarded by various agencies may be grouped into the following six categories:

A.  Scholarships offered by non-Commonwealth Governments, B. Commonwealth Scholarships and Fellowships, C. Scholarships offered by non-Governmental Agencies Tenable in Britain, D. SAARC Fellowships and Scholarships, E. Scholarships and Fellowships awarded by Private Organisations.

A brief account of each of these categories follows:

A. Scholarships offered by non- Commonwealth Governments: Government of India has bilateral agreements with 24 non- Commonwealth governments which offer scholarships for pursuing studies in these countries in a wide range of subjects. The countries are: Austria, Belgium, Bulgaria, China, Denmark, Egypt, Germany, Greece, Hungary, Indonesia, Israel, Italy, Japan, South Korea, Mexico, Mongolia, Netherlands, Norway, Poland, Portugal, Slovak Government, Spain and Turkey.

The scheme is operated by the National and External Scholarships Division of the Department of Secondary Education and Higher Education of the Ministry of Human Resource Development. The notifications are published in the Employment News and several selected national newspapers. As stated earlier, particulars about the schemes are given in the Scholarships for Study Abroad and Home (1997) brought out by the Association of Indian Universities (AIU).

B.  Commonwealth Scholarships and Fellowships Plan: The Commonwealth Scholarship and Fellowship Plan were created in 1960 to enable Commonwealth students of high intellectual promise to pursue studies in Commonwealth countries other than their own. While India offers the awards to eight countries, the Indian Students receive them from seven countries viz., Australia, Britain, Canada, Hong Kong, New Zealand, Nigeria and Trinidad and Tobago. External Scholarships Division of the Department of Secondary Education and Higher Education is responsible for operating the plan. The total number of scholarships tenable in Britain is 55. Out of these, 22 are for one-year Master degree courses and clinical training and 33 are for three-year PhD courses. Announcements for all the awards made in Employment News and selected national newspapers.

C.  Scholarships Schemes in Britain: Besides the Commonwealth Scholarships tenable in Britain, a number of other scholarships are awarded to Indian students by the British government and universities. The publication study in Britain mentioned earlier gives details of such scholarships. A brief account of some of the important ones is given in Annexure 4.

D.  SAARC Fellowships and Scholarships: SAARC Fellowships and scholarships are awarded for post-doctoral research and Master’s and Ph.D. studies in Bangladesh, Bhutan, Nepal, Pakistan and Sri Lanka. The scheme is operated by the University Grants Commission (Bahadur Shah Zafar Marg, New Delhi-110002).

E.  Scholarships and Fellowships awarded by the Government of India: The Annexure 5 gives information about six awards.

F.  Scholarships and Fellowships Awarded by Private Organisations: A small number of awards are offered by corporate houses and private trusts. Annexure 6 gives a list of 19 such awards.

Financial Supports for SC/ST Students

Six types of financial supports are available for SC/ST students for pursuing education at different levels: A. Pre-Metric Scholarships for Children of those engaged in unclean occupations, B. Post-Metric Scholarships, C. Scheme for the Upgradation or Merit at the School Level, D. Overseas Scholarships/Passage Grant for Higher Studies Abroad, E. Scholarships awarded by several public sector undertakings, F. Loan Scholarships and G. miscellaneous Scholarships. A brief account of each is given in Annexure 7. Besides, the Social Welfare Departments of the State governments also have introduced schemes for assisting SC/ST students. In addition, exclusive residential schools have been established totally financed by the state governments.

Educational Loan Schemes

In the wake of spiralling rise in the cost of education, the public sector banks came to technical rescue of parents looking for sources of finance by introducing schemes for giving loans for education. The managers of bank branches are authorised to sanction loans in accordance with rules and regulations prescribed by each of the banks. Although the terms and conditions for granting loan vary from bank to bank, the common features are as follows:

Purpose: Loans are provided for pursuing studies in recognised schools, colleges and other institutions at differing levels – high school, graduate and higher level studies (including technical and other professionals courses). For studies abroad, generally the level should be postgraduate and higher studies. The loans are intended to meet A. Tuition and other fees, such as examination fees, hostel fees, B. maintenance costs, costs of books, equipment etc., and C. Cost of air passage (in case of study abroad).

Eligibility Criteria: A. parents and Guardians must have independent sources of regular income, B. the students should have obtained specified minimum percentage of marks at the previous qualifying examination. This stipulation varies. For example, for school and college education in India, the State Bank of India specified minimum second division (pass marks for SC/ST students), while in the case of Canara Bank the stipulation is 60% marks in aggregate (50% for SC/ST students). For technical and professionals studies in India and abroad State Bank of India specified minimum first division (second division for SC/ST). The Bank also insists on evidence of passing the entrance test or securing admission to the course.

Quantum of Loan: The quantum of loan varies according to the levels of studies. There are two parameters – actual expenses or the specified upper limits, whichever is less. The loan amount is further subjected to what is called “margin” money, i.e., the specified amount of the cost of education that parents and guardians are required to share. It is generally stipulated as percentage of the total costs which varies between 10% and 25%. By and large, in Uttar Pradesh up to Rs.25, 000 no margin money is required.

Some banks treat scholarships or assistantships as margin money. For school and college education in India, the quantum of loan in Uttar Pradesh is six times the monthly net (take home) income of the parents and guardians subject to a minimum of Rs.40, 000.00 and maximum of Rupees one lakh. As regards technical and professionals studies in India, the upper limit is Rupees five lakh. The upper limit for study abroad is Rupees ten lakh. Some banks specify the loan amount for different types of courses.

Disbursement: The loan amounts are directly paid to the educational institutions and agencies in case of air passage and purchase of books.

Interest Rate: At the prevailing rate.

Security: All the loans require collateral security equal to the amount of loan A. consisting of such instruments (one or more) as government securities. UTI units, SBI Magnums, National Savings Certificates, LIC Policies, Bank deposits, shares, public sector bonds and B. movable and immovable assets. For loans up to Rs.25, 000.00, however, no collateral security is needed. Only a surety from the parent or guardian is enough.

Repayment: Repayment conditions vary form bank to bank. By and large, for school and college education, the loans have to be repaid within a period of 36 months, commencing immediately after disbursal. In case of technical and professional studies and study abroad, the repayment should be made within 60 months after the completion of the course or securing job, whichever is earlier. Generally, the banks advise repayment, as much as possible, even during the period of study with a minimum of 0.5% of the loan amount.

Tax Relief: Under Section 80E of the Income Tax Act, repayment of loan or interest is deductible from the taxable income up to a maximum of Rs.25, 000.00.

Processing Fee: The banks charge processing fee at variable rates linked to the loan amounts.

Update

1.  Department of Culture (Ministry of Tourism and Culture): There are 10 Junior and 15 Senior Fellowships awarded with the objectives of encouraging application of modern ideas, principles, methodologies and technology to art and Culture related issues. The Value of a Senior Fellowship is Rs 6,000.00 per month and that of a Junior Fellowship is Rs3000.00 per month Both are tenable for two years age criteria are; junior fellowship - age group 25 - 40 years. senior fellowship -40years and above. Contact address: Section officer, S&F section, room no.333,C-wing department of culture, Shastri Bhawan, New Delhi 110001.

2.  Research Scholarships in the School of Mathematics, Tata Institute of Fundamental Research (TIFR) Awarded to young students for the career of research in mathematics. Eligibility requirement is a good Master's Degree in Mathematics. However, BSc degree holders of exceptional merit students with engineering degree are also eligible. The value of scholarship is Rs5400 per month and an annual contingency education grant. It is a tenable initially for one year and extendable further on the basis of performance. Students are provided with hostel accommodation at nominal charges. Contact Address: The Establishment Officer, TIFR, Homi Bhabha Road, Mumbai 400065).

3.  Aditya Birla Group Scholarships: The scholarships are awarded to products of IITs and IIMs. The process involves inviting about 20 students each from selective IITs and IIMs. The applications are evaluated on "parameters pegged not only on academic excellence, but in a more holistic manner". Candidates short listed on the basis of an evaluation are interviewed by an eminent jury. Contact Address: Corporate Communication Cell, Aditya Birla Group,121 Mittal Court,"B" Wing, Nariman Point, Mumbai 400021.

4.  Queda Educational Foundation: Interest Free loan scholarship for study in Australia, Europe, UK and USA in various fields. Contact Address: SCN Jatar, A 102 Neel Sadan 1426 Sadaship Peth, Pune 411030.

5.  National Level Science Talent Examination: Conducted every year by The United Council of Educational Research & Scientific Advancement in Learning (Universal Trust) to test the level of awareness of students of classes XI and XII in science and mathematics. Qualified candidates are awarded scholarships, cash prizes etc. The advertisement published in several papers mentions that the examination is not in any way connected with the National Talent Search examination conducted by the NCERT (see page 122). Contact Address: Project Director, Universal Trust, Universal Road, Thiruvanathapuram 695001).

6.  Ramesh Medical and Technical Institute of Education Excellence: Has announced through advertisements in several newspapers in October 2000 the introduction of 150 scholarships (100 scholarships at the rate of Rs 3 lakh for engineering students and Rs 5 lakh for medical students). Selection is made on the basis of an all India examination. However, aspiring candidates must note that the examination costs Rs 2,500.00 as examination fee and Rs 3,500.00 as medical examination fee!.

7.  The Prem Bhatia Memorial Trust Scholarships for Young Journalist (Duration: One Year, Total value Rs 60,000.).

8.  K K Birla Foundation Fellowships: Six scholarships awarded to journalists (Two each in Hindi, English, and other language). Duration one year, value Rs 8,000 per month plus Rs 25,000 contingency grant.

9.  Gates Cambridge Scholarships: Awarded by the Bill and Melinda Gates Foundation setup by Microsoft Corporation to non-British students for studying in Cambridge university (UK). The scholarships would be awarded to 255 graduate candidates every year possessing academic ability and leadership potential to cover all their costs. The tenure would be one to three years which may be extended for fourth year.

10.  Quark Scholarships: Awarded by Quark inc. in Denver, Colorado(USA), a global information technology company, to students who wish to pursue professional studies. Eligibility criteria are:(i)students pursuing MCA/BIT/BE/BTech (Comp.Sc, Electronics and Communications) BFA/Journalism and Mass Communication;(ii) Annual family income below Rs. 2 lakh, (iii) must have scored at least 75 percent marks in the aggregate in annual examinations from Class 10 onwards, Contact Address: Quark Foundation,52 Industrial Area (II), Chandigarh- 160002.

11.  G E Fund: General Electric Company of USA has provided a grant of Rs. 6.7 million to the Institute of International Education to award 50 scholarships to Indian students pursuing graduate and postgraduate courses in engineering, science, and management at thirteen institutes in India including IIIT (Bangalore), IIMs at Calcutta, Indore and Kozhikode, Faculty of Management Studies (University of Delhi), IITs at Chennai, Delhi, Kanpur,and Mumbai. The Scholarships will cover tuition fees, related course expenses and boarding for two years. Contact Address: www.ge.com/community/fund/html.

12.  Homi Bhabha Centre for Science Education: Research Scholarships for Ph.D degree in Science Education (Faculty of Science, University of Mumbai).Value Rs. 5,400.00 per month plus Rs. 7,500.00 as annual contingent grant. Eligibility: M.Sc in any branch science and age below 25 years. Contact address: Senior Administrative officer, Homi Bhaba Centre for Science Education, Tifr, VM Purav Marg Mamkhurd, Mumbai 400088.