The Rising Cost of Education in India

"Education’s purpose is to replace an empty mind with an open one." — Malcolm Forbes.

This profound quote encapsulates the immense power of education, which can fill the darkness of our hearts and minds with the light of knowledge. It highlights the importance of education in shaping our lives, enabling us to grow as individuals who can think critically and intellectually, are socially responsible, and empathize with others.

Education is not just a stepping stone to getting a dream job but a powerful tool for the personal growth of an individual and societal development. Moreover, education enables us to analyze information and solve complex problems effectively. It strengthens our inner soul, filling it with confidence to navigate life’s toughest challenges. Deliberately, most schools nowadays change the traditional teaching approaches and adopt critical thinking exercises for students, as a study by the University of Michigan has shown that students involved in such exercises have tremendously improved their academic performance, approaching a complex problem with different angles and generating a unique solution to it. 

It is also an “economic driver” as a higher level of educated people in a country significantly boosts the GDP contributing to overall economic growth. According to a survey by the U.S. Bureau of Labor Statistics, students with a graduate degree can earn 84% more than those with only a high school diploma. It highlights that investing in education is investing in human capital, which drives economic development and prosperity in a country. According to World Bank data, each additional year of schooling can contribute significantly to a country’s GDP growth by 0.37%. Even if it increases by 1%, the growing literacy rate can boost GDP growth by 0.3%. Educated people tend to be more productive, and innovative, and have higher-order skills, which translates into tremendous economic growth and efficiency.

Further it has countless benefits, with its core purpose being to drive societal progress. For centuries, humans, as social animals, have contributed towards the betterment of society, and education has equipped them with the necessary tools to accelerate this lumbering progress to rapid advancement. Education teaches us to reduce social inequalities, foster civic engagement, and flourish in a more informed society. Moreover, it breaks the cycle of poverty and equalizes people by empowering them to get better lives and contribute meaningfully to their communities.  As the saying goes “Everything has a price” and the countless benefits and limitless opportunities education provides are not exceptional. The price of education, despite its immense benefits, is a huge burden that students and their families must bear throughout their educational journey. The average cost of educating a child in India varies widely. It depends upon factors such as the type of education, the category of the school (private or government), and the school’s location. Private schools, for instance, cost higher fees than government schools, making them less affordable for students. 

Indian parents often spend a considerable amount of their hard-earned money on educating their children. The cost of nearly 15 years of schooling, followed by 6 to 7 years of college education, can amount to lakhs of rupees for a single child. This cost has risen dramatically over the years, and in 2024, it is estimated to reach unprecedented levels. In this blog, we will evaluate the cost of higher education in 2024, as an increase in student numbers, rising tuition fees, inflation, and growing demand for quality education compel us to consider how to deal with this colossal issue of increasing cost.

The Surging Costs of Education in India

The Indian education system has witnessed many seasons of cost surge in the past few decades. Interestingly it has mastered the art of setting unbeatable records, which might not be considered affordable. In the 1990s, education in government schools was comparatively more affordable than in private schools, even the government colleges and universities often charged modest fees, making it possible for middle-class and lower-income families to afford quality education for their children. However,  lowering fees has become a mythical concept as the demand for higher education increased due to the increasing population, particularly in the 2000s.

In the next ten years, the rising demand for quality education coupled with inflation and rising aspirations among students led to a sharp increase in education costs making it out of reach for middle and lower-income families. All India Council for Technical Education (AICTE), the cost of education in India has risen remarkably more than 50% over the past decade, outpacing the growth of the country’s GDP. Still, this rise reversibly impacted the pocket of middle-class people.

The Indian government is paying more attention to the education sector as it allocated approximately ₹1 lakh crore (roughly $12.5 billion) in the 2024-25 session. While this investment reflects the government’s commitment to providing education for all, it does not control the unstoppable rise of student tuition fees, particularly in private institutions. Let’s glance at different professional and nonprofessional courses and their cost in Indian universities.

Analysing the Cost of Undergraduate Education in India

After completing 12 years of schooling students enter universities to begin their undergraduate education. Several Indian universities both private and public offer a diverse range of courses with varying fee structures. The fees of courses are influenced by factors such as the course chosen, the student’s specialization field, and the type of institution. Undoubtedly, private institutions are more expensive compared to government colleges. However, many students still choose private institutions, as the competition for seats in government colleges is often intense.

`1. Professional Courses Costs in India: 

Engineering is one of the most popular and renowned courses in the list of professionals as 1.5 million engineering graduates are produced yearly from various Indian universities. This highly sought-after field offers multiple specializations such as civil, mechanical, electrical, computer science, and chemical engineering. These disciplines provide students with a broad range of career options and open the door to well-paying jobs in public and private companies, which secures their future. The salary packages offered to engineering degree holders from renowned universities often run into lakhs, similar to the cost of completing the course. However, parents and students are allured to these high packages, considering the cost of education as a one-time investment.

Students who crack the government competitive exams like the Indian Institutes of Technology (IITs) and National Institutes of Technology (NITs), have to pay lower fees than their private counterparts. The cost of a Bachelor's degree in engineering from these institutions ranges from INR 1 lakh to INR 2.5 lakh per year. Irrnversably the cost at private engineering colleges is comparatively higher, costing INR 5 lakh to 15 lakh annually depending on the institution’s reputation, infrastructure, and facilities provided by the university. Although the cost of studying at the premier government colleges is comparatively low, cracking competitive exams such as IITs and NITs is a monumental challenge. Lakhs of students apply for these exams yearly, and only a drop in the ocean gets selected through vigorous competition. Students who do not pass these exams are compelled to knock on the door of private colleges and pay high fees, doubling the financial burden on families with limited earnings.

Medicine is another coveted field, demanded by students passionate about healthcare and eager to contribute to society. Doctors have a reputation in society and this profession is considered noble due to its life-saving impact. After completing 10th grade students start preparing for the NEET exam, one of the toughest exams in India. 24 lakh students appeared for the Medical entrance exam in 2024, which is surging over the years.

However, the increasing number of applicants coupled with a limited number of seats has created a bottleneck, where demand exceeds supply, making the path to becoming a doctor even more competitive. The MBBS course in India was completed in 5.5 years, followed by a one-year internship. After completing their MBBS students prepare for specialization in medical fields such as pediatrics, cardiology, neurology, gynecology, etc. which take additional 2-3 years. This 8-9 year-long medical journey leaves students with a hefty burden of expenses, often depleting their savings and straining their financial resources. The financial gap between government and private colleges is stark when pursuing medical education in India. While public medical colleges remain more accessible for students, with fees ranging from INR 50,000 to INR 2 lakh, private colleges create challenges and cap the fees from INR 8 lakh to INR 30 lakh annually. Moreover, those aiming for postgraduate specializations such as MD or MS can add additional fees from INR 2 lakh to 20 lakh per year. 

Law is another popular choice for students, with a wide range of specializations such as corporate law, intellectual property, legal journalism, criminal law, and environmental law. However, suppose you are thinking about becoming a successful lawyer earning lakhs per case like renowned advocates Ram Jethmalani, Harish Salve, and Soli Sorabjee, it is important to evaluate the cost of turning that dream into a reality. Public law colleges tend to be more affordable, with fees ranging from INR 20,000 to INR 2 lakh per year. In contrast, private law schools charge much higher costs, ranging from INR 2 lakh to INR 8 lakh per year. After completing the undergraduate law degree, many students opt for a postgraduate law degree (LLM), which typically costs between INR 1 lakh and INR 5 lakh per year in India. 

2. Non-Professional Courses Costs in India:

Students who don't aspire to pursue professional courses like engineering, medicine, or law, have various options in non-professional classes like arts, humanities, social sciences, literature, and fine arts. These non-professional undergraduate courses like Bachelor of Arts, Bachelor of Fine Arts, Bachelor of Design, and many more trending courses charge lower fees in public institutions than private colleges. The budget-friendly fees in government colleges range from INR 10,000 to INR 50,000 annually while private colleges charge you between INR 50,000 to 2 lakh for creative courses like BFA and B.Des. 

While these programs are more affordable than professional courses, living expenses, particularly in metropolitan cities like Delhi, Mumbai, and Bengaluru, can add to the overall cost. Monthly living expenses can range from INR 5,000 to INR 20,000, depending on the city and lifestyle choices.

3. Postgraduate Education Costs in India

For many students in India, postgraduate education is a serious financial commitment, especially if students are looking at professional courses. Here is a breakdown of fees for some of the most popular PG courses :

MBA: An MBA remains one of the most expensive courses in India, with fees ranging from INR 5 lakh to INR 25 lakh, depending on the institution. The Indian Institutes of Management (IIMs), among the top business schools in the country, charge at the higher end of this scale, while less renowned universities offer lower tuition fees.

M.Sc. in Engineering/Technology: These courses offered by top-tier institutions like IITs and NITs will cost students anywhere between INR 2 lakh to INR 10 lakh for the complete course.

Master of Public Health (MPH): This course also has a higher price tag, ranging from INR 2 lakh to INR 10 lakh, depending on the chosen university.

4. Non-Professional Postgraduate Education Costs in India

Non-professional postgraduate courses such as Master of Arts (MA), Master of Fine Arts (MFA), and Master of Science (MSc) in fields like literature, history, and philosophy are generally more affordable than professional courses. Public university fees for these programs tend to be modest, from INR 15,000 to INR 1 lakh annually. On the other hand, private universities charge higher fees, typically between INR 50,000 to 2 lakh annually. While professional programs often offer more financial aid, merit-based scholarships are available for students in non-professional fields like literature and history.

5. PhD Cost Analysis and Opportunities

Pursuing a PhD is regarded as the pinnacle of academic achievement, where students dive deep into original research in their field. The public universities in India offer relatively affordable PhD programs, particularly in government-funded institutions. The course costs range from INR 20,000 to INR 1 lakh annually. In contrast, private universities tend to charge higher fees. Furthermore, many PhD students receive stipends or research assistantships, which help to offset living expenses. With rising tuition fees for higher education, many students are switching to flexible alternatives such as online and distance learning programs to pursue their academic dreams.

In the contemporary era, traditional educational methods are no longer the sole means of acquiring knowledge as the rapidly evolving technology has provided us with a new direction to learn things. Plenty of resources are available online such as free online courses, educational videos, podcasts, e-books, e-library, and academic experts ready to serve the students with their wide spectrum of knowledge. With platforms like Coursera, edX, and Udemy offering free and paid courses, learners can build and upgrade the skills required for any profession. By leveraging these tools and technology learners can customize their educational experiences and keep pace with the changing modern world. In addition to this “Distance Learning” education can dramatically reduce the uncontrollable cost of higher education. 

Let’s look at how distance learning programs help reduce students’ financial burden.

Distance Learning Programs

Distance Learning is a mode of education in which students can complete their academic programs without attending the traditional classroom lectures at the college campus. Leveraging the facilities provided by the online platform, printed materials, and recorded lectures students by self-study can complete their degree from anywhere in the world. Distance learning includes undergraduate and postgraduate programs, specialized certifications, diplomas, and PhD courses. As digital education becomes more accessible, distance learning is gaining popularity among learners. 

This mode offers a variety of undergraduate degrees in fields such as arts, commerce, political science, science and technology, literature, and management. For those looking for specialized postgraduate programs such as M.Sc, M.A, M.Com, MEd, MBA, and other nonprofessional courses, in addition to language courses and drama, art music mostly all of the programs are available at the ease of learners. Furthermore, diplomas and degree certification courses in emerging fields such as business management, data science, and digital marketing are quite popular and easily accessible for students. 

Lastly, some universities offer doctoral programs (PhDs) through distance learning, catering to research-oriented students who wish to contribute original work to their field. These programs allow students to engage in advanced research while benefiting from distance education’s flexibility, offering online mentorship and digital resources to support their academic goals.

How Distance Learning Reduces the Costs of Higher Education

Distance learning programs offer several pocket-friendly advantages that allure students, a few of the benefits are mentioned below.

1. Lower Tuition Fees:

Distance learning programs are more affordable than traditional on-campus courses. As these do not need costly infrastructure, such as classrooms, dorms, and libraries, these savings can be passed on to students by universities can be passed on to students. For instance, while an MBA at IIM may range from ₹5 lakh to ₹25 lakh, a similar distance learning course can be as affordable as ₹1 lakh to ₹4 lakh, providing savings of 50% to 80%.

2. Elimination of Accommodation and Transportation Costs

One of the largest financial burdens for students in traditional on-campus programs is the living expenses, transportation, food, and other facilities. Learning from a distance mode can remove these costs as the students will learn from the comfort of their homes. This is especially beneficial for those living in remote areas, as they need not move to expensive cities such as Delhi, Mumbai, or Bengaluru where the living cost is from ₹30,000 to ₹1 lakh annually. 

3. No Additional Costs for Campus Infrastructure and Amenities

Students attending on-campus programs often face additional charges for amenities such as sports participation, library access, laboratory usage, events, and many more. In comparison, distance learners typically do not incur these extra charges. Also, the costs of purchasing textbooks and accessing online materials are considerably less than the on-campus expenses. 

4. Flexible Payment Plans

Distance learning institutions recognize the different financial situations of their students and offer flexible payment options to manage their educational costs. For instance, they provide installment-based payment plans, which allow students to pay the fees in smaller installments over the course duration. This payment flexibility helps students manage their immediate financial burden and makes education feasible for many students.

Leading Distance Learning Universities in India

Many leading universities in India offer students various courses seeking affordable and flexible options to complete their degrees. Some of the prominent universities for distance learning education in India are as follows: 

1. Indira Gandhi National Open University (IGNOU)

Indira Gandhi National Open University (IGNOU) is a well-established distance education provider in India, offering students an expanded range of academic programs. With more than 400 programs available such as undergraduate, postgraduate, diploma, and certificate programs it covers a wide range of fields, including arts, commerce, science, management, education, and engineering. What sets IGNOU apart is the affordability of the courses as its programs are designed for national and international students. A student can complete a 3-year Bachelor of Arts degree for just Rs. 4500; a Master of Business Administration costs 30,000 to 50,000.IGNOU is an excellent option for students seeking a pocket-friendly and flexible education. 

2. Dr. B.R. Ambedkar Open University (BRAOU)

Dr. B.R. Ambedkar Open University (BRAOU), previously known as Andhra Pradesh Open University, is another leading institution for distance learning education in India, mostly focused on Telangana and Andhra Pradesh students. The government of Andhra Pradesh established this university to provide higher education opportunities to all sections of society. BRAOU stands out from others due to its exceptionally lower tuition fees, which make education accessible to diverse sections of society and fulfill the motive of its establishment. For instance, the total fees for graduation and postgraduation courses range from ₹5,000 to ₹20,000. The university covers courses such as UG, PG, MPhil, PhD, Diploma, and certificate programs in arts, commerce, science, and management. BRAOU's affordability and accessibility make it a popular choice for students looking for cost-effective distance learning options.

3. Sikkim Manipal University (SMU)

Sikkim Manipal University (SMU) is a distinguished private university offering distance education through its Sikkim Manipal University Distance Education (SMU-DE) platform. This university has a strong reputation for providing high-quality management, information technology, and healthcare. The fees at SMU are higher than IGNOU and BRAOU for pursuing an MBA, can cost between ₹60,000 and ₹1 lakh, but it is still more affordable than many traditional on-campus institutions. SMU offers a wide selection of courses in IT and healthcare such as B.Tech, M.Tech, B.Sc, M.Sc., PhD, BBA, MBA, BCA, and MCA. The university’s blend of high-quality education and course completion flexibility, sets it apart from other institutions, making it a more appealing option for students who are looking for specialized programs from renowned institutions. 

4. University of Mumbai – Institute of Distance and Open Learning (IDOL)

The University of Mumbai’s Institute of Distance and Open Learning (IDOL), is one of India’s oldest distance learning institutions. IDOL has a broad student network as it offers a variety of courses including commerce, arts, science, management, and law. The affordable fee structure makes it attractive for many students as it covers undergraduate programs such as BA and BCom costing between ₹10,000 and ₹25,000, and MBA programs ranging from ₹25,000 to ₹50,000. It is well-known for its quality education, positioning it at the top of the list of leading institutions in Mumbai and across the country.

5. Symbiosis Centre for Distance Learning 

(SCDL) is a leading name in India’s distance education sector, as it offers a broad range of distance education programs to fulfill the needs of professional learners. From finance, and marketing to management, SCDL’s diploma and postgraduate diploma courses facilitate high-quality education with a fee structure ranging from Rs. 10,000 to Rs. 80,000. The university provides strong placement support, in companies like HDFC Bank and Reliance Retail. Moreover, SCDL offers corporate training programs with giant firms such as IBM and Cipla which provide wider opportunities for students. Students can access video lectures and expert guidance by virtual classrooms and online chats with professors, anywhere in their comfort zone.

6. Netaji Subhas Open University

NSOU might be the perfect fit for students looking for a flexible and affordable way to complete their educational journey. The distance learning programs cover a long list such as undergraduate courses like BA, B.Sc, B.Com, and B.Ed (fees: ₹6,584 to ₹80,000), as well as postgraduate programs such as MA, M.Sc, M.Com, MSW, and PhD (fees: ₹7,600 to ₹36,000). The university also provides diploma and certificate courses, like B.Lib.I.Sc and M. Lib.I.Sc, with fees between ₹5,000 and ₹9,500 offering students practical skills to excel in the rapidly changing marketplace. The university has study centers across West Bengal, students can learn at their own pace while managing their commitments.

Distance learning education became a popular choice among students after the pandemic, more than 75% of students enrolled in distance mode of education. After the pandemic, the popularity remains the same as more than 10 million students choose at least one course from distance education. Affordable fees, convenient study hours, self-paced learning, and convenience make it a ray of hope for students, especially when private colleges' tuition fees touch the sky. The growing popularity of distance learning in India demonstrates its potential to make higher education more accessible and affordable for a larger number of students.

Conclusion: 

In conclusion, the rising costs of higher education in 2024 present a significant challenge for students and families worldwide, especially in countries like India where demand for quality education has surged. However, despite these costs, higher education remains one of the most important investments a person can make — both for personal growth and societal progress.

The costs for students pursuing professional courses like engineering, medicine, or law can be high, but the potential for economic stability, personal development, and career success is substantial. While more affordable, non-professional courses offer valuable intellectual enrichment and a pathway to fulfilling arts, history, and social sciences careers. Moreover, postgraduate and PhD programs can be more expensive, but they also offer specialized knowledge and expertise that can lead to high-paying and rewarding careers. Distance learning programs provide an affordable and flexible alternative to traditional education, especially for working professionals.

Ultimately, the cost of education should not be viewed in isolation. Education’s return on investment extends far beyond the immediate financial costs, offering individuals the opportunity to enhance their skills, contribute to society, and achieve personal fulfillment. With financial aid, scholarships, and loan options available, the dream of pursuing higher education is still within reach for many students. Governments, institutions, and society must ensure that quality education remains accessible and affordable to all, allowing future generations to thrive and contribute to the growth and prosperity of their communities and nations.