RBI governor Raghuram Rajan warned the students regarding education loans and said that they should make the decision of choosing colleges more carefully or otherwise they will fall prey to 'unscrupulous schools' which might leave them stuck into high debt and "useless degrees".
Due to expensive teaching at high quality research universities, Raghuram Rajan said that efforts should be made to make degrees affordable to all deserving students.
He well understands that in most of the cases, a student takes education loan to study further and regarding this he said "we have to be careful that student loans are repaid in full by those who have the means, while they are forgiven in part for those who fall on bad times, or those who take low paying public service jobs."
In his convocation address at the Shiv Nadar University, he said, "we also should make sure that unscrupulous schools do not prey on uninformed students, leaving them with high debt and useless degrees."
Rajan began his address on a lighter note and remarked that he embarks on this talk comforted by the knowledge that the "bar for convocation speeches is low."
"If you even remember a word I say a few years from now, I will have surpassed the average convocation speaker - most people don't remember who spoke at their convocation, let alone what they said."
Rajan, a globally known economist, emphasised that free market is not fair saying even well-run market economies seem to be favouring those who already have plenty.
"In part, this is because skills and capabilities have become much more important in well-paid jobs, and those born in good circumstances have a much better chance at acquiring these," he said.