New Delhi, Aug 27 - Have you taken an educational loan and are finding it tough to pay the interest on it? Take heart, as the government Thursday decided to shoulder the burden for students from economically weaker sections while they are pursuing the course and for one year thereafter or for six months after getting a job.

The proposal, part of the 100-day agenda of the human resource development (HRD) ministry, got a cabinet panel's nod Thursday. The government hopes the move will benefit around 500,000 students.

The Cabinet Committee on Economic Affairs (CCEA) gave its approval 'to provide full interest subsidy during the period of moratorium on loans taken by students belonging to economically weaker sections from scheduled banks under the educational loan scheme of the Indian Banks' Association (IBA), for pursuing any of the approved courses of studies in technical and professional streams, from recognized institutions in India', Home Minister P. Chidambaram said.

Briefing reporters after a CCEA meeting chaired by Prime Minister Manmohan Singh, he said the IBA had formulated a model educational loan scheme for all banks, aimed at providing financial support to deserving and meritorious students for pursuing higher education in India and abroad.