IIM's hike the fees, How will common man afford this

ghodlur · 31st March 2010, 13:01

First it was IIM B which hiked the fees and now its the turn of IIM A to hike the fees which is going to be 13.7L for a two year course

. This is third hike in three years. Just imagine a course which costed 5L in 2007 now costs 13.7L in 2010 a jump of 36%

. How is this affordable to a common man and esp parents who would be dreaming to have their children getting admission to these prestigious institutes.
I was just thinking how much do I have to start saving right from now if my three year old son ever wished to join these insitutes. The rate at which the education costs are exponentially rising gives me sleepless nights. Pls see below link

IIM-B raises fee by Rs 1.5 lakh

BHPians any thoughts on the same.

rajivn · 31st March 2010, 13:36

MBA as such is an expensive affair and IIMs are the best brand and offer the best ROI compared to any other B-school in India. I think its worth it even at 15L per year.

ISB, Hyderabad for that matter charges 18L+ for their 1yr course, people do flock to it and people do get placed with phenomenal packages. No one gets a seat with influence or just money power, its purely merit and most guys take loans to meet the expense.

sachinj12 · 31st March 2010, 14:05

The grads are paid really well. So they won't really have any problem paying back. And the 'common man' would have graduated to the 'rich class' when he gets placed. Its a matter of 3-4 years before he clears it off.

Nikhilb2008 · 31st March 2010, 14:33

I agree with this move. If they dont increase the fees, the IIMs will lose their lustre. They pay their faculty quite well and if they expect them to continue delivering like before, they need to pay. And from where will they get the money? Students.

I'm happy this is one govt institution where they are not just relying on govt giveaways.

naveenvenkatesh · 31st March 2010, 15:07

Compared to US/UK schools, its peanuts for IIM if you consider the investment and return. The salary packages are extremely high for IIM grads. And for IIMs to sustain themselves, they need to increase the fees. Else they need to ask the government for everything! They need to get self sufficient.I still feel its worth it, even at 15L.

alpha1 · 31st March 2010, 15:17

OP, am really afraid to prick you bubble, but:
1. Considering the returns on investment, it will bring IIMs at par with worldwide institutes.
2. Common man anyway cannot think/afford of getting into IITs and IIMs. There are hordes of coaching centers which train "not-so-brilliant" students to crack the entrance exams. Result - the more "deserving" candidates (but poor) are not able to make it past even the initial stages.
What next? You are gonna petition against the coaching classes?

Abhay · 31st March 2010, 15:44

What common man are you talking about here? Good education is already quite costly to for someone to reach or aspire to be an IIM student.

Also my problem in the original post is this "parents dreaming of their children going to such schools/institutes" that is the crux of the problem in India. Let the child decide what he wants to do or study for once than pushing him/her into this rat-race for the sake of your own notions of success.

If the kid is smart enough and more importantly interested in studying in such places the parents or the student will find a way to do it. As others have said, graduates from IIMs get paid a LOT so they do not really have to worry about the fees right away.

babaops · 31st March 2010, 16:09

The fee hike is totally justified and there is even scope for more.I dont think parents need to worry about the fees of IIM or other grade 'A' b-schools, a student can easily get a loan for the entire fees. SBI for sure offers it. No parental support needed. No gauranter needed. One just needs to show the admission proof and a few other docs and he gets the entire loan. The entire process took only a couple of hours when I tool my loan.

Samurai · 31st March 2010, 18:28

Anyone who gets admission to IIM, stops being a common man right away.

So, let's not worry about this.

Now compare this with MBBS and MD seats, which costs many times more without any definite future at the end of the course.

Mpower · 31st March 2010, 18:59

Quote:

Originally Posted by ghodlur

This is third hike in three years. Just imagine a course which costed 5L in 2007 now costs 13.7L in 2010 a jump of 36%

. How is this affordable to a common man and esp parents who would be dreaming to have their children getting admission to these prestigious institutes..

Heard or student loans? My friend got into a top MBA school in the US, the banks were standing in line to finance him.

NetfreakBombay · 31st March 2010, 21:33

Quote:

Originally Posted by Samurai

Now compare this with MBBS and MD seats, which costs many times more without any definite future at the end of the course.

Is that the case with Govt medical collages?

indian21r · 6th April 2010, 15:39

wow that is a cool 10 lakhs more than what I paid in 2007-09.

It is necessary for the colleges to hike because they have stopped taking grants from the government. And MBA's need not be subsidized. There are scholarships for students in financial need and banks are always in queue.

Along with the Fees I hope they improve the standards to compete at the top level globally

Gilead · 6th April 2010, 15:47

I graduated in 2001 and I paid about 1.4 lacs. The faculty gets paid peanuts compared to the kind of work they do. I hope they take this opportunity to pay them what they deserve. The increase in fees would be worth it just to keep the HRD ministry at bay.

@Samurai, most IIM grads end up with regular jobs with maybe slightly more than regular pay only to start off with.

After that it's a dog eat dog world and up to the person's calibre. Do not believe the hype created by the place comms.

mayankjha1806 · 27th February 2012, 16:07

If one is thinking about going back and doing some specialized course at some premium school like IIMB or IIMA, the course fees is quiet a deterrent these days. A good course can cost upwards of 12L, this means one might have to consider taking an educational loan. My questions are

1. How are they, any advises?
2. Are they cheaper then other loans, like personal, auto, or home?
3. They have a benefit of tax free, are there any caveats in that?

mayankjha1806 · 1st March 2012, 11:58

Bumping this thread again, on my query of Educational loans.

Spoke to HDFC Credila guys and they fund upto 20L for higher education at 12.5% Simple Interest, now i was curious as to why SI when everyone is giving it on Compounded? Which is better anyone has any idea?

The repayment plan looks flexible as they say the EMI can start post course completion + six months.

31st March 2010, 13:01	#1
ghodlur Senior - BHPian Join Date: Sep 2009 Location: Thane Posts: 6,010 Thanked: 4,199 Times View My Garage	IIM's hike the fees, How will common man afford this First it was IIM B which hiked the fees and now its the turn of IIM A to hike the fees which is going to be 13.7L for a two year course. This is third hike in three years. Just imagine a course which costed 5L in 2007 now costs 13.7L in 2010 a jump of 36%. How is this affordable to a common man and esp parents who would be dreaming to have their children getting admission to these prestigious institutes. I was just thinking how much do I have to start saving right from now if my three year old son ever wished to join these insitutes. The rate at which the education costs are exponentially rising gives me sleepless nights. Pls see below link IIM-B raises fee by Rs 1.5 lakh BHPians any thoughts on the same.
	() Thanks

31st March 2010, 13:36	#2
rajivn BHPian Join Date: Jun 2009 Location: Chennai Posts: 332 Thanked: 33 Times	MBA as such is an expensive affair and IIMs are the best brand and offer the best ROI compared to any other B-school in India. I think its worth it even at 15L per year. ISB, Hyderabad for that matter charges 18L+ for their 1yr course, people do flock to it and people do get placed with phenomenal packages. No one gets a seat with influence or just money power, its purely merit and most guys take loans to meet the expense.
	() Thanks

31st March 2010, 14:05	#3
sachinj12 Senior - BHPian Join Date: Nov 2009 Location: Los Angeles Posts: 1,187 Thanked: 168 Times	The grads are paid really well. So they won't really have any problem paying back. And the 'common man' would have graduated to the 'rich class' when he gets placed. Its a matter of 3-4 years before he clears it off.
	() Thanks

31st March 2010, 14:33	#4
Nikhilb2008 Distinguished - BHPian Join Date: Jul 2006 Location: Bangalore Posts: 5,196 Thanked: 10,138 Times	I agree with this move. If they dont increase the fees, the IIMs will lose their lustre. They pay their faculty quite well and if they expect them to continue delivering like before, they need to pay. And from where will they get the money? Students. I'm happy this is one govt institution where they are not just relying on govt giveaways.
	() Thanks

31st March 2010, 15:07	#5
naveenvenkatesh BHPian Join Date: Aug 2009 Location: US/India Posts: 344 Thanked: 151 Times	Compared to US/UK schools, its peanuts for IIM if you consider the investment and return. The salary packages are extremely high for IIM grads. And for IIMs to sustain themselves, they need to increase the fees. Else they need to ask the government for everything! They need to get self sufficient.I still feel its worth it, even at 15L. Last edited by naveenvenkatesh : 31st March 2010 at 15:08.
	() Thanks

31st March 2010, 15:17	#6
alpha1 Senior - BHPian Join Date: Apr 2007 Location: LandOfNoWinters Posts: 2,093 Thanked: 2,605 Times	OP, am really afraid to prick you bubble, but: 1. Considering the returns on investment, it will bring IIMs at par with worldwide institutes. 2. Common man anyway cannot think/afford of getting into IITs and IIMs. There are hordes of coaching centers which train "not-so-brilliant" students to crack the entrance exams. Result - the more "deserving" candidates (but poor) are not able to make it past even the initial stages. What next? You are gonna petition against the coaching classes?
	() Thanks

31st March 2010, 15:44	#7
Abhay BHPian Join Date: Apr 2005 Location: Pune Posts: 727 Thanked: 11 Times	What common man are you talking about here? Good education is already quite costly to for someone to reach or aspire to be an IIM student. Also my problem in the original post is this "parents dreaming of their children going to such schools/institutes" that is the crux of the problem in India. Let the child decide what he wants to do or study for once than pushing him/her into this rat-race for the sake of your own notions of success. If the kid is smart enough and more importantly interested in studying in such places the parents or the student will find a way to do it. As others have said, graduates from IIMs get paid a LOT so they do not really have to worry about the fees right away.
	() Thanks

31st March 2010, 16:09	#8
babaops BHPian Join Date: Sep 2009 Location: Bangalore Posts: 61 Thanked: 2 Times	The fee hike is totally justified and there is even scope for more.I dont think parents need to worry about the fees of IIM or other grade 'A' b-schools, a student can easily get a loan for the entire fees. SBI for sure offers it. No parental support needed. No gauranter needed. One just needs to show the admission proof and a few other docs and he gets the entire loan. The entire process took only a couple of hours when I tool my loan.
	() Thanks

31st March 2010, 18:28	#9
Samurai Team-BHP Support Join Date: Jan 2005 Location: Bangalore/Udupi Posts: 25,828 Thanked: 45,555 Times View My Garage	Anyone who gets admission to IIM, stops being a common man right away. So, let's not worry about this. Now compare this with MBBS and MD seats, which costs many times more without any definite future at the end of the course.
	() Thanks

6th April 2010, 15:39	#12
indian21r BHPian Join Date: Mar 2006 Location: Hyderabad Posts: 964 Thanked: 808 Times	wow that is a cool 10 lakhs more than what I paid in 2007-09. It is necessary for the colleges to hike because they have stopped taking grants from the government. And MBA's need not be subsidized. There are scholarships for students in financial need and banks are always in queue. Along with the Fees I hope they improve the standards to compete at the top level globally
	() Thanks

6th April 2010, 15:47	#13
Gilead Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 2,142 Thanked: 60 Times	I graduated in 2001 and I paid about 1.4 lacs. The faculty gets paid peanuts compared to the kind of work they do. I hope they take this opportunity to pay them what they deserve. The increase in fees would be worth it just to keep the HRD ministry at bay. @Samurai, most IIM grads end up with regular jobs with maybe slightly more than regular pay only to start off with. After that it's a dog eat dog world and up to the person's calibre. Do not believe the hype created by the place comms.
	() Thanks

27th February 2012, 16:07	#14
mayankjha1806 Senior - BHPian Join Date: Jan 2011 Location: Bangalore Posts: 2,160 Thanked: 978 Times View My Garage	Educational Loans - Help needed If one is thinking about going back and doing some specialized course at some premium school like IIMB or IIMA, the course fees is quiet a deterrent these days. A good course can cost upwards of 12L, this means one might have to consider taking an educational loan. My questions are 1. How are they, any advises? 2. Are they cheaper then other loans, like personal, auto, or home? 3. They have a benefit of tax free, are there any caveats in that?
	() Thanks

1st March 2012, 11:58	#15
mayankjha1806 Senior - BHPian Join Date: Jan 2011 Location: Bangalore Posts: 2,160 Thanked: 978 Times View My Garage	Re: IIM's hike the fees, How will common man afford this Bumping this thread again, on my query of Educational loans. Spoke to HDFC Credila guys and they fund upto 20L for higher education at 12.5% Simple Interest, now i was curious as to why SI when everyone is giving it on Compounded? Which is better anyone has any idea? The repayment plan looks flexible as they say the EMI can start post course completion + six months.
	() Thanks