The rising cost of higher education shows a rapid growth in the education sector with a market worth of around Rs. 708000 Crores for current year-2017. Currently, the higher education in India contributes about to 60% and schooling education is around 40% of the market size.
The cost of education in India is rising much faster than the inflation. It estimated with the current scenario that the average cost of MBA degree will be around 50-60 Lakhs (INR) until the year 2025. While the cost for an engineering degree will be around 25-30 Lakhs (INR) till year- 2025. Schooling cost will be just more than doubled cost of now.
In Public-funded colleges, the fees are financed through loans that make education undesirable for many of those who can’t afford the burden of clearing of such huge loans. The cost in private colleges is very high compared to government institutions. Government colleges in IITs also raised the prices of annual tuition fees from Rs. 90000 to 2 Lakhs (INR). Still, in India, more than 70% of students forced by their family choice of higher education academic programmes and careers with huge loans but not of students choice and interests.
According to the survey, the middle-class family spends around 60% of salary in their children’s education including fees, books, uniforms, transport cost, home tuition fees and in other career advancement works. The study shows that the average parents have to spend around Rs. 30 lakhs in raising a child from pre-school education to higher secondary education by year-2025.
This rising cost of higher education makes a lot of parents in worry situation. Most of them can’t even think to give them a good education because of higher cost. Indian parents really need a little relief from such high educational costs.
Times Graduates blog on Improving Education system in India shows the major changes in the education system of India with its future benefits and losses.