Goa Education Development Corporation Announces Relief Scheme for Defaulted Education Loans
The Goa Education Development Corporation (GEDC), which launched an interest-free higher education loan scheme for students in the state back in 2005, has introduced a one-time relief initiative to assist beneficiaries who have fallen behind on repayments. While many students have diligently repaid their loans over the years, a significant number—1,402 individuals—have defaulted, accumulating a total outstanding amount of Rs 21.3 crore.
Key Details of the One-Time Relief Scheme
To avail of the benefits under this new scheme, the 1,402 defaulting students must submit their applications to the GEDC between February 1, 2026, and July 31, 2026. During this period, applicants are required to inform the corporation about the specific repayment option they choose from the available alternatives.
Repayment Options and Conditions
The GEDC has outlined several tailored repayment pathways to accommodate different financial situations among the defaulters:
- For Loanees Within the Payback Period: Students who are still within their loan repayment tenure but have missed EMI payments can clear all unpaid installments within three months. If completed within this timeframe, the GEDC will waive the entire penal interest accrued due to the non-repayment of EMIs. Following this, beneficiaries can resume their remaining EMI payments according to the original schedule.
- For Those with Principal Repaid: Beneficiaries who have already repaid the principal loan amount and only have outstanding penal interest will see their loans closed under the scheme. It is important to note that any penal interest paid prior to the notification of this relief scheme will not be refunded. However, such individuals can apply for a 'no dues certificate' from the corporation.
- For Beneficiaries Beyond the Payback Period: Students who have exceeded their loan repayment period are offered a structured plan. If they settle the outstanding principal along with a 5% interest on the principal amount within two months, they can benefit from the relief. Alternatively, if repayment is made within four months, the interest rate increases to 10%, and within six months, it rises to 15% on the principal outstanding.
Objective and Eligibility Criteria
The primary goal of this one-time relief scheme is to provide financial respite to beneficiaries of the interest-free education loan program who have faced challenges in timely repayment due to circumstances beyond their control. To be eligible, defaulting loanees must ensure that they both pay the required amount and submit their application within the specified timeline of the relief scheme.
This initiative by the GEDC aims to alleviate the burden on students while encouraging responsible financial behavior and ensuring the sustainability of the education loan program for future beneficiaries.
