Sunday, March 30, 2008

IIMA fee hike

I had a post yesterday on the IIMA fee hike. The figures I mentioned have been overtaken by events. The IIMA board, at its meeting yesterday, has approved an increase in fee to Rs 5.5 lakh in the first year and Rs 6 lakh in the second year, making the total cost of the PGP Rs 11. 5 lakh- up over 140% from the present level of Rs 4.4 lakh.

7 comments:

Jawaid said...

The 140% increase is not justifiable by any logic whatsoever. This will further decrease the chances of a middle-class / lower middle-class student to get through IIMs. The recent abnormal increase in the salary being offered in the campus placements may have increased the numbers of applicants. But this fee structure will only add to the lop-sided development of the country. Government’s intention to increase the numbers of IITs and IIMs was seen as a step to make quality engineering and management education reachable to all; but this kind of increase in fee will make it unaffordable to them.

Paresh said...

The increase is definitely not justifiable. But the statement about a middle/lower class student not being able to afford teh course is still a little far from reality.
- Loans are available. And easily available for that matter. On the registration day, several banks have their desks on the campus to facilitate quick issue of loan amount. Forget about soft loans, even if the banks charge you at market rates; you can replay your loan within 2-3 years of getting a job.
- Scholarships. Although I am not sure how many eligible students receive them and to what extent.

But yes, the sheer number of INR 11.5 Lakh might be bit of a shock for lower/middle class families. And going by the trend, I won't be surprised if the shock intensity goes up dramatically in coming years.

soutrik said...

Mr. Paresh - Why do you thik that the increase is not justifiable? The avg salary at iima is up nearly 200% over last 2 years.
Also, on the issue of loans and scholarships, you are talking as if you are an insider ...

US said...

Average salary!
Is IIM-A an educational institute or a placement agency?

What if the student wants to set up his own business. Take the entrepreneurship route? He is beset by 11.5 lac fees + 2 to 3 lacs of living expenses during two years. That is ~15 lacs of debt to begin with. No wonder he will be forced to take a job.

This just further cripples the ability of a student to start his own business. If this fee hike is based squarely on average salary to students, then there should be a complete wavier of 100% to student who doesn't wish to sit in the placement process OR who takes the entrepreneurship route.

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