In today’s tech-driven era, boundless opportunities await individuals worldwide, transcending barriers in education, tourism, health, and more. With a plethora of offerings and booming industries, the decision-making process for one’s future has evolved, becoming more strategic and passion-driven. Venturing beyond national boundaries to pursue educational aspirations is now commonplace, facilitated by an array of choices available at the international level. Amidst this landscape, student loan forgiveness emerges as a beacon of financial relief for those navigating the higher education journey. As enrollment rates in foreign universities soar annually, the prospect of alleviating financial burdens through student loan forgiveness programs offers hope and encouragement to aspiring learners worldwide.

If we talk about India, over the past decade, there has been a significant increase in the number of Indian students enrolling in foreign universities. This trend can be attributed to various factors such as the growing Indian middle class, and increased awareness about international education opportunities, availability of scholarships, and the desire for high-quality education. As the fee structure of the top-ranked universities in the world is so high, students take education loans to fulfil their educational dreams. But most often they get trapped in the long journey of educational loan instalments because of the high competition for jobs. 

In this article, we are sharing with you a significant concept of Student Loan Forgiveness that relieves students. This topic at a glance gives a little hope to students with substantial education loan debt. The high-interest rates of loans and job uncertainty mostly despair students. Studying abroad is a dream come true for Indian students. Recent graphs show that every progressive year, the number of students pursuing higher education from foreign universities is increasing rapidly. The expansion of educational opportunities outside the border has always lured students because of world-class facilities and specifically course choices. The research-oriented and problem-solving educational models of some countries no doubt offer great curriculums and help to develop innovative minds.

The high-ranked language tests and eligibility criteria for getting admission in famous global universities demand genuine efforts of students to reach there. By receiving the offer letters from the dream universities, students feel in high spirits. But after their genuine efforts, a new struggling phase starts afterward. Despite getting scholarships from universities sometimes, it is a big challenge for a middle-class Indian student to get enrolled there as the estimation of the cost of living is quite a new challenge. 

Further students seeking loans above a certain amount face extreme challenges without collateral or security due to the fear of non-repayment. Now is there any ray of hope for the students facing high pressure?

So many questions must arise in your mind like-

Student Loan Forgiveness

  • Are there any eligibility criteria for the Student Loan Forgiveness/Student Loan Debt Relief? 
  • To what extent debt can be relieved? 
  • How many schemes government of India is offering? 
  • Are these schemes functional?

And many more questions must be striking in your mind.

In this blog, we are sharing with you about this model which ignites a flame of hope for students studying abroad. Globally this concept has gained so much recognition for ensuring the financial security of students since the launch of the ‘Student Loan Forgiveness Program’ by the US President in 2022, many countries, including India, have taken similar initiatives to ease the burden of millions of students and parents who are struggling to repay their education loans.

Various schemes and policies by the government of India in this context are

Student Loan Forgiveness

Interest Subsidy Schemes- These schemes offered by the government are beneficial for students with weaker financial backgrounds. This helps to reduce the immediate financial burden on students as the government pays interest on student loans during their study period. The maximum loan amount is INR 20 lakhs with an interest rate of 4% and female students are more benefitted by getting an interest rate of 2%.

Dr.Ambedkar Central Sector Scheme-  This Scheme offers Interest Subsidy on Education Loans for Overseas Studies for OBCs and EBCs. This Scheme facilitates post-graduation courses outside India.

Vidya Samunnathi Educational Loan Scheme- This scheme is offered by Kerala Government as a reward for outstanding academic performance in examinations. This is a noteworthy initiative as a loan waiver program of the Kerala Government. It is truly a ray of hope for diligent students from Kerala.

Interest subsidy scheme by the Gujrat government- Under this student loan, economically weaker students can get a 100% subsidy on the interest of the loan amount. This means you can repay the amount you borrowed after completing your higher education.

Loan Forgiveness for Specific Professions-  Some courses of foreign universities curriculums that lead to careers in specific sectors such as teaching, healthcare, or rural development may get benefits of a student loan forgiveness program. This is done to encourage people to work in areas where there is a shortage of skilled professionals.

Effectiveness of the Student Loan Forgiveness Programs in India

Student Loan Forgiveness

The initiatives and schemes launched by individual states and institutions in India to provide relief to students burdened with loans seem a relief but the evaluation of effectiveness suggests there is a lot of scope for the improvements and practicality. The initiatives of Interest subsidy schemes have been successful to some extent as compared to ‘Reward-based debt relief’ as an initiative of the Kerala government and ‘loan forgiveness for specific professionals’, as these initiatives face challenges in implementation and equitable distribution.


Lack of legal framework for the administration of these programs, lack of substantial financial resources, lack of transparency and accountability and budgetary constraints are the further challenges in developing countries like India. There is a strong need to study the ‘Student Loan Forgiveness’ plan models of other countries. But still, these initiatives will improve in the future as the policies of the government become stronger. 

Further positive initiatives and innovative trends by foreign universities for international students may ease the students’ dreams of global universities.