Escalating Education Costs: Challenges in New India

Education is often hailed as the cornerstone of progress and development in any society. It shapes the future of individuals and nations alike. However, Education costs in India have surged in recent years, presenting a significant challenge to accessibility for many aspiring students. This stands in stark contrast to many developed countries like Germany and Sweden, where education is largely subsidized or even free.
Tuition fees at premier institutions like IITs, NITs, and IISERs have skyrocketed, with hikes ranging from 78.5% to 122% within just a few years. For example, IIT tuition fees rose from 45,000 INR per semester in 2015 to 1,00,000 INR per semester in 2016, a 122% hike. Similarly, NIT fees jumped from 17,500 INR per semester to 62,500 INR per semester in just two years.
Even advanced degrees like PhDs and MBAs have not been spared. At IIT Bombay, PhD fees increased from 16,500 INR to 26,450 INR for first-year students, and to 23,950 INR for subsequent years. Meanwhile, the cost of an MBA at IIM Lucknow soared from INR 14 lakh for the batch of 2020-22 to INR 20.75 lakh for the batch of 2022-24, marking a 48% increase in just two years.
The situation is equally dire in medical education, where fees at private colleges have skyrocketed. The National Medical Commission’s Fee Regulation of 2022 aimed to cap fees, yet private medical colleges still charge up to 40 lakhs per year. Institutions like Ashwini Rural Medical College saw fees rise from 6.44 lakhs per year in 2017 to 10.4 lakhs per year in 2021, reflecting a worrying trend of uncontrolled fee hikes.
Even undergraduate courses in private colleges have seen dramatic fee increases, with annual fees for courses like BBA and BCA rising from 30,000-40,000 INR to 1-1.5 lakh INR per annum post COVID-19.
These escalating costs perpetuate socio-economic disparities and limit opportunities for aspiring students, hindering social mobility and innovation. Urgent action is imperative, including increased funding for education, stricter fee regulation, and the promotion of alternative education models, to ensure equitable access to quality education for all, mirroring the inclusive approaches seen in countries like Germany and Sweden.
In addressing the escalating education costs, the Congress manifesto offers comprehensive solutions:

Amending the Right to Education (RTE) Act to ensure free and compulsory education from Class I to Class XII in public schools, aiming to provide access to quality education for all.

Encouraging state governments to establish fee regulation committees for private schools to promote equity, affordability, and transparency in school fees, thus alleviating financial burdens on students and families.

Putting an end to the practice of charging special fees for various purposes in public schools, which will further ease the financial strain on students and their families.

Reviving the Education Loan programme to provide collateral-free education loans up to 7.5 lakhs, particularly focusing on students from marginalized communities like SC, ST, OBC, EWS, and minorities, thereby enhancing access to higher education.

Introducing a one-time relief measure to write off the amount due, including unpaid interest, for all student educational loans as of March 15, 2024, to alleviate the burden of student debt and provide financial relief.

These initiatives aim to mitigate the socio-economic disparities exacerbated by escalating education costs, fostering equitable access to quality education for all students in India.