The High Court of Karnataka on Thursday ordered issue of notices to the State and Union governments, and the Reserve Bank of India on a PIL petition seeking extension of the benefit of moratorium scheme on education loans to all categories of students in view of the COVID-19 pandemic.
However, the court declined to entertain two others pleas, made in the petition, seeking direction to the State and Union governments to either waive outstanding education loans with effect from March 1, 2020, or waive the interest amount on all education loans for two years.
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Ashok S. Kinagi passed the order on the PIL petition filed by Dr. Ram Manohar Lohiya Thinkers Forum, Bengaluru.
As the Bench declined to consider the plea for waiver of either outstanding or interest amounts, the petitioner’s counsel requested the court to consider a plea for directing the authorities to extend the moratorium period, available to students belonging to economically weaker sections in repayment of educational loans under the Central Sector Interest Subsidy Scheme (CSISS) of the Ministry of Human Resources Department, to all students.
It was pointed out in the petition that in the CSISS, the interest payable during the moratorium period, that is course period plus one year, would be payable by the government in the case of students belonging to economically weaker sections. The petitioner requested the court to issue direction to authorities to extend this benefit to all students without any exception.
