Indian parents are ready to spend all their life savings on their kid’s education. The average annual cost for general education has gone up 175% between the years 2008 and 2014. During the same years, the average cost of technical and professional education has gone up 96%. The question we should be asking is, “why has education gotten so expensive?”. Due to the shortage of qualified educators, lot of private institutes are looking at education from the point of view of business. Seats are reserved for management quota where students pay extra to just a get admitted into an institute. Colleges are started by people who are financially capable of investing to start a college with the minimum infrastructure and not qualified teachers.
Education from colleges like IIT, NIIT, Manipal University require students to take an education loan for the entire or partial cost of education depending on the availability of personal funds from savings. Education loans are also very popular in India. With banks like State Bank of India providing Rs.10 lakhs for education in India and Rs.30 lakhs for abroad education, education loans are a common occurrence as they are highly promoted in the media.
Students who manage to qualify to JEE Main to apply for engineering colleges are still required to pay a large amount of money even after proving their knowledge in the entrance exam. And those who fail to qualify the entrance exam, resort to colleges with colleges with low-quality education or rely on the management quota where it can cost Rs.1 lakh to 7.5 lakh plus per year tuition for all the years of education.
Over the past few years, India’s inflation is about 9% which consequently increases the price of goods and service. Another reason for increase in cost of education is the price of real estate skyrocketing. Schools and colleges usually require a few acres of land to house the institution. The cost of buildings is also pretty high to either buy or rent. With shortage in teachers, the demand for teachers is very high which leads to institutes paying teachers rather well. Also, the recommended teacher to student ratio is 1:15, to reach that standard ratio a lot of teachers need to be hired. Other expenses like the internal infrastructure of the educational institute like libraries, laboratories, sports facilities, etc.
After spending so much money on education, students are not sure if they’re really interested in that field of career. Education is considered an investment. But there are a high number of graduates who are unemployed. Primary education is very important. High education is an investment only if the person area of interests continues to remain in that field of study. Higher education should only be considered if the person has a genuine interest in pursuing a career in that field of work. Few students graduate from their degree, work in their field of education till they pay off their education loan and then shift their career to an area of interest. This may not always be a convenient option as paying off the loan may take up a good few years.