Statistical Analysis of the Impact of Education Loan on Enrollments in Higher Education in India

Ritik Gupta, Umesh Gupta

Higher Education, Education Loan, Correlation, Test of hypothesis, chi square, ranking.

The education loan is a major financial support for access to higher education. Quality education is a must for a complete and successful life. For many, it is equivalent to graduating from reputed and well-established institutions. According to studies, education costs are increasing at an average of 10-12% per annum. Despite the saving tendency of people in India, one may still encounter a shortage of funds. An education loan, therefore, plays a vital role in such a scenario by helping to bridge the gap between the shortfall and the required amount. The demand for education loans increased with an increase in GDP. In this paper, the growth in loans taken by the students in higher education has been analyzed statistically based on various parameters such as students’ enrollment, gender parity index, load outstanding amount, and number of loan accounts. Statistical methods such as correlation, regression, and tests of hypothesis have been used computationally for this analysis. This paper concludes that with the increase in the ratio of loans taken, there is also an increase in gross enrolment ratio and the gender parity index. There is a huge amount of loans which is outstanding and need further investigation. There are many states which has a very low number of education loan accounts, which is an indication of a lack of balance of higher education accessibility across the states in India.

https://doi.org/10.31871/IJNTR.10.12.9