Education loans and changing middle-class values in India

“What is the definition of middle-class values?” The answer to this question was, “Middle-class values encompass a set of principles that place a strong emphasis on hard work, education, financial responsibility, community involvement, and a commitment to striving for improvement.”

How can we understand this difficult fact that Indian students studying abroad spend nearly $80 billion annually, with their numbers projected to increase from around 1 million to 1.8 million next year? What is happening here? Do a significant number of our students possess enough knowledge and skills to gain admission to Indian technological institutions, management institutions, medical and law schools and, more importantly, believe in going abroad for education by accumulating the required finances?

This estimate may be correct, as another concerning fact is that Indian banks are owed approximately ₹80,000 crore in education loans, out of which they have declared 8% of the amount as bad debts.

Simultaneously, many medical and engineering colleges in India charge around ₹20 lakhs annually, which means that in about four to five years of study, nearly ₹1 crore is required for fees alone. Some medical and dental colleges even charge one to two crore rupees for admissions.

In India, another trend is emerging: Indian students and their parents are seeking jobs in the US and Europe if they are incurring a debt of up to ₹1 crore by the time they graduate, so that they can earn a higher salary that allows them to repay their substantial education loans. It is not possible to achieve this level of income with salaries available in India.

Why are all these startling events happening? The pursuit of excellence, where it seems appropriate, also contributes to increasing inequality and social polarization because the search for excellence and elite education has contributed to growing social inequality. Instead of common good, it has been focused on individual success.