How to meet the future cost of your ward’s education expenses

As the current scenario of education segment in India becoming tad expensive, nevertheless, you can meet the aspirations of your ward, if you have a strategic plan and make requisite preparation for it, writes Narendra Nathan in ET. As the daily has handpicked the most trending courses, the report also gives a comprehensive idea of the current and future fee increases, besides suggesting routes to fund them as well.

BTech

The current fee for the IITs is Rs.9.20 lakh and the likely fee after a decade would be around Rs.18.10 lakh. As for the NITs the present fee structure is Rs.7.48 lakh and the likely increase after ten years would be Rs.14.71. Other institutes across the country are charging a fee of Rs.15.60 currently and after ten years the fee structure would be around Rs.30.69 lakh. Fees for the entire duration for general category students includes tuition fee, hostel fee, dining charges and more. Future fee is calculated assuming inflation of 7%, the average for the past decade. BITS Pilani is considered for other institutes, said the report.

In the event of you not gaining admission in the main IITs, the NITs might as well be a better option than the smaller IITs, writes the author. The EMIs for the loan amount you take now and after eight years as follows: for IITs, the EMI for five years are Rs.19, 547 and for eight years it is Rs.13, 960. For NITs it is Rs.15, 893 and Rs.11,350 respectively. For other institutes it is Rs.33, 145 and Rs.23, 672. The interest on education loans vary between 9% and 11%, while 10% considered for computation.

The SIPs needed to reach future cost in a decade for IITs at 8% it is Rs.9, 896 and at 12% 7,870. For NITs it is Rs.8, 043 and Rs.6, 396 and other institutes it is Rs.16,780 and Rs.13,344 respectively.

MBBS

The current fee for AIIMS Delhi is 0.25 lakh and the likely increase after ten years is Rs.0.49 lakh. In Government medical colleges it is Rs.1.75 lakh and Rs.3.44 lakh respectively and private medical colleges it is Rs.25 lakh and Rs.49.18 lakh respectively (For candidates who gain admission through NEET examination), the average is considered as fees vary from state to state. Fees for entire course duration for general category students includes tuition fee, hostel fee, dining charges etc. Future course fee is calculated assuming inflation of 7%, while the average is for the past ten years. Fee differential between government and private medical colleges is humongous as a high score in national examination will ensure a place in a government college.

The EMIs if loan is taken now is as follows: For AIIMS Rs.531 and for eight years it is Rs.379, for Government medical colleges Rs.3,718 and Rs.2,655 respectively and private medical colleges it is Rs.53,118 and Rs.37,936 respectively. The interest on education loans vary between 9% and 11%;t 10% considered for computation.

The SIPs needed to reach future cost in ten years is as follows: For AIIMS at 8% it is Rs.269 and at 12% Rs.214, for Government medical colleges Rs.1,882 and Rs.1,497 respectively and for private medical colleges, Rs.26,889 and Rs.21,383 respectively.

BSc

The current fee for IISC BS (Research) four years, it is Rs.0.81 lakh and the likely fee after ten years it would be Rs.1.59 lakh, for IISER Pune BS-MS five years it is Rs.4.24 lakh and Rs.8.35 lakh respectively and other colleges BSc three years, it is Rs.0.30 and Rs.0.59 lakh respectively.

Fees for entire course duration for general category students includes tuition fee, hostel fee, dining charges, etc. Future fee calculated assuming inflation of 7%, the average for the past 10 years and the cost of studying science at the undergraduate level remains reasonably affordable, says the report.

The EMIs if loan taken now for the course IISc BSC (Research) four years if the loan tenure is five years it is Rs.1,717 and for eight years tenure it is projected to Rs.1,226, for IISER Pune – BS-MS- five years it is Rs.9,019 and Rs.6,441 respectively and other colleges it is Rs.637 and Rs.455 respectively.

Fees for entire course duration for general category students includes tuition fee, hostel fee, dining charges, etc. Future fee calculated assuming inflation of 7%, the average for the past 10 years. The cost of studying science at the undergraduate level remains reasonably affordable.

The EMIs if loan taken now on the course IISc BSc (Research) four years, if the loan tenure is five years it is Rs.1, 717 and for eight years it is Rs.1, 226 and for the course IISER Pune – BS – MS five years it is Rs.9, 019 and Rs.6,441 respectively and for other colleges it is Rs.637 and Rs.455 respectively. The interest on education loans vary between 9% and 11%, while 10% is considered for computation.

SIPs needed to reach future cost in ten years for IISC – BSc (Research) four years at 8% it is Rs.869 and at 12% it is Rs.691, for IISER Pune – BS – MS five years, it is Rs.4, 566 and Rs.3,631 respectively and for other colleges it is Rs.323 and Rs.257 respectively.

MBA

The current fee for top IIMs is Rs.22 lakh and after ten years it is projected to be Rs.43.28 lakh, for other IIMs it is Rs.14 lakh and Rs.27.54 lakh respectively and for other institutes it is Rs.16 lakh and Rs.31.47 lakh respectively. IIM Ahmedabad is considered for top IIMS, IIM Lucknow for the IIMS, SP Jain Mumbai is considered for other institutes. Fees for general category students include tuition fee, hostel fee and dining charges. Future course fee is calculated assuming an inflation of 7%, while the average is taken for the past ten years. Despite the toughest entrance examination, IIMs still remain the costliest.

EMIs if loan is taken now is as follows: for top IIMs if the loan tenure is five years, it is Rs.46,743 and for eight years it is projected to be Rs.33,383, for other IIMs it is Rs.29,746 and Rs.21,244 and for other institutes it is Rs.33,995 and Rs.24,279 respectively. The interest on education loans vary between 9% and 11%, 10% considered for computation.

SIPs needed to reach future cost in ten years, for top IIMs at 8% it is Rs.23, 662 and at 12% it is Rs.18, 817, for other IIMs it is Rs.15, 058 and Rs.11, 974 respectively and for other institutes, it is Rs.17, 209 and Rs.13, 685 respectively.

MTech

The current fee for IITs is Rs.2.10 lakh and the likely fee after ten years is estimated at Rs.4.14 lakh, for NITs it is Rs.2.24 lakh and Rs.4.41 respectively and other institutes it is Rs.9.78 lakh and Rs.19.24 lakh respectively. Fees for entire course duration for general category students includes tuition fee, hostel fee, dining charges, etc. Future fee calculated assuming inflation of 7%, the average for past 10 years. Bits Pilani is considered for other institutes. There is very little difference in costs between IITs and NITs when it comes to the M Tech course. The EMIs if loan taken now for IITs at 8% it is Rs.2,264 and at 12% it is Rs.1,800, for NITs it is Rs.2,411 and1,917 respectively and other institutes it is Rs.10,519 and Rs.8,336.

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