One of
the basic goals planned by every family includes higher education cost
provisioning for their children. It could be vague for any parent to calculate
the amount they would like to raise for this goal. There are many probabilities
in it - whether the child really wants to pursue
higher education, is the planned corpus enough or should we really stress so
much on higher education expense. It may be possible that the child
has alternative thought process of making it big. So, the real question is how
realistic the amount we keep aside for the higher education is?
Factors
that affect our decision:
1. Type
of course – Tenure, intake of students, specialization
2.
Country to pursue the program - any country abroad?
3. Global
Ranking of the Institute
4. Job
prospects
5. And
many times, we even consider the social stature
attached while attending a particular institute.
Factors
that should really affect our decision:
a) The future value– No, I am not talking about the job
prospects, it should never be the only motive to take up higher education.I am
emphasizing on the need to anticipate the future expense of our desired course.
Say in 2009-10, simple annual tuition fees for a
Stanford Graduate School of Business' MBA program was costing to USD51,321
which has now ballooned up to USD57,300.A straight increment of 11% in the
tuition fees. In addition, we have to factor the living expenses, which are
relatively higher out in abroad. Back in India, the two year Post Graduate
Programme in Management at IIM- Ahmedabad was costing Rs.13.70 lakhs 2010-12
and now for 2014- 16 increased to Rs 15.2 lakhs , an
increase of almost 10%. Further, a private aided school could be more
expensive than a government supported one. So, be wise when you calculate your
requirement.
b) Inquire about Education Loan – It is better to inquire for
education loan eligibility, so that if in case we don’t have sufficient funds
to sponsor the required cost we can add some debt to service the goal.
c) Appropriate Selection – Although, it a tough decision for
family to agree upon one course for selection, it is wise to avoid peer and
social pressure while making a choice. Also, it is best to select one that
match our academic aptitude and monetary commitments.
d) Supplementary expenses- Although, we fancy enrollment at best
college, it is necessary to understand that beyond the tuition fees there are
various supplementary expenses like living expenses, gadgets, food and
personal shopping, which can also be substantial if not included in a full time
residential program. So, a quick check should be made while accessing the
options.
e) Also
get a general idea for the cost pertaining to the entrance examination fees,
coaching for these exams, VISA application, traveling for personal
interview/group discussion and college application form charges, etc..
It is better to be more realistic while aiming at your higher
education goal. Also, it is not worth coming up with some upscale higher
education dream, if we are unsure of our children’s desires or goals.
Actually take a while and think, did you really study what you
wanted to or just follow the crowd to make a decision for you.
Thanks and Regards
Team
Email: saarthifp@gmail.com
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