Are you prepared for your Children’s higher education?

Are you prepared for your Children’s higher education?

More than 1,30,000 Indian students have gone to USA this year to pursue  higher education. This is the highest number of Indian students in a single year and the second highest of foreign students in USA. Many parents desire  to send their children for higher education abroad for quality education and the trend is increasing every year. As per a study reported in Business Standard on 20th Nov 2015, parents are saving 30-40% of their income for children’s higher education. The destination countries are USA, UK, Australia, Singapore and other EU countries. The major challenge is affordability of the rising cost. The fees of universities are rising every year and it is much higher than the normal inflation. It is estimated that the minimum increase is more than 15% per year. The maximum bank loan for higher education abroad provided by Banks in India  is Rs20 lakhs which is not sufficient for meeting the cost. Besides the university fees, there are living cost which comes to Rs10 -12 lakhs per year.

Very few parents can afford the cost unless they plan in advance and start saving & investing early in career. A major mistake committed by parents is in buying endowment child plans of  life insurance policies  which does not provide more than  5-6% annual return  .The ideal way is to start early, go for term life insurance and  invest through equity preferably through the Mutual Fund route. Many couples have now started investing for child’s higher education even before the child is born. This is a healthy trend. The investment should factor the future cost, the goal horizon, risk appetite and asset allocation.

We  furnish hereunder the estimates of  some universities current fees(converted to INR) as extracted from the websites.  

Name of Institute(s)

Duration

2015

Fees with Inflation @10%

Medical

Yrs

Annual fee(Rs)

Total

fees(Rs)

After 5 years(Rs)

After 10 years(Rs)

MGM Medical College

5

     6,50,000

     32,50,000

         52,34,000

       84,30,000

K.J. Somaiya Medical College

5

     7,00,000

     35,00,000

         56,37,000

       91,00,000

Engineering

 

 

 

 

 

IIT - Madras

4

     1,05,000

        4,20,000

           6,76,000

       10,90,000

IIT - Bombay

4

     1,20,000

        4,80,000

           7,73,000

       12,45,000

Bharati Vidyapeeth,College of Eng

4

         90,000

        3,60,000

           5,80,000

         9,34,000

Management(MBA)

 

 

 

 

 

IIM - Bangalore

2

 

     18,70,000

         30,12,000

       48,50,000

IIM Ahamadabad

2

        8,88,000

         14,30,000

       23,00,000

Foreign Studies(STEM)

 

 

 

 

 

USA

2

   25,00,000

     50,00,000

         80,53,000

     129,68,000

UK

2

   25,00,000

     50,00,000

         80,52,550

     129,68,000

Management(MBA)

 

 

 

 

 

Stanford University,California

2

   63,40,000

   126,80,000

      204,21,000

     328,90,000

Oxford University - UK

2

   51,70,000

   103,40,000

      166,53,000

     268,20,000

Cambridge University - UK

2

   66,60,000

   133,20,000

      214,52,000

     345,49,000

National University of Singapore

2

   37,40,000

     74,80,000

      120,47,000

     194,00,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Countries

Information

Links

 

USA

 

Universities, Tuition fees, International student intake and scholarships

 

https://www.petersons.com/

 

US and Canada

 

Ranking and cost

http://www.usnews.com/

 

 

 

Australia

 

Universities and  cost

 

http://australianuniversities.co/lists.html

Universities according to rankings, area, cost, subjects

http://www.australianuniversities.com.au/rankings/

 

Australian Government site

http://www.studyinaustralia.gov.au/global/australian-education/education-costs

 

 

Europe

 

Rankings and further university wise cost

 

http://www.usnews.com/education/best-global-universities/europe

Masters and PHD programs

http://www.mastersportal.eu/articles/#topic:4

 

Subject wise search, country wise search, Tuition costs

http://www.studyineurope.eu/

 

 

  

Last modified on Wednesday, 10 February 2016 06:14

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial PlannerCM from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.

7 comments

  • Thad

    posted by Thad

    Sunday, 04 June 2017 22:24

    This is the perfect web site for anyone who wishes to find out about this topic.
    You realize so much its almost tough to argue with you (not that I really would
    want to…HaHa). You certainly put a brand new spin on a subject that has been discussed for years.
    Excellent stuff, just great!

    Report
  • Dilip

    posted by Dilip

    Wednesday, 10 February 2016 10:59

    An informative article

    Report
  • rohan

    posted by rohan

    Wednesday, 10 February 2016 10:57

    its high demand of time

    Report
  • vinit

    posted by vinit

    Wednesday, 10 February 2016 10:56

    Good article..Appreciable..

    Report
  • abhi

    posted by abhi

    Wednesday, 10 February 2016 10:55

    It is high time that people understand the need of Fee based Financial Planners. Good one!

    Report
  • ranajit

    posted by ranajit

    Tuesday, 15 December 2015 07:04

    useful one

    Report
  • Sujata Aniruddha Sapkal

    posted by Sujata Aniruddha Sapkal

    Wednesday, 09 December 2015 07:33

    funding child higher education is a herculean task for parents....start saving as earlier the better.

    Report

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