As India’s higher education landscape continues to expand, it brings with it a complex set of challenges. While education is viewed as the gateway to a brighter future, the financial strain it places on families is significant. Parents across the country, particularly in middle-class households, are facing a difficult reality: the cost of higher education is forcing them to put their own dreams on hold.
With limited seats in government universities and high fees in private institutions, parents are draining their savings and going into debt to secure their children’s future. This raises a critical question: Are dreams reserved only for the young or do parents deserve an opportunity to pursue their own aspirations as well?
The Limited Scope of Affordable Higher Education
Government universities are often the first choice for students due to their affordability and reputation for quality education. However, the competition for these seats is immense. In 2024, Delhi University received over 3 lakh applications for approximately 70,000 seats. Such intense competition leaves many students with no alternative but to enroll in private universities. These institutions, while offering superior facilities and infrastructure, charge annual fees ranging from ₹2 lakh to ₹20 lakh, depending on the course and location.
This disparity highlights the systemic issue of limited access to affordable education. Over 40 million students enroll in higher education annually, yet the availability of government seats falls significantly short of this demand. This gap forces families to bear the financial brunt, often at the expense of their own financial stability and long-term goals.
Financial Burden on Families
The financial strain of private education is staggering. According to the Reserve Bank of India, education loans crossed ₹90,000 crore in 2023, a figure that continues to rise. Middle-class families often rely on loans or deplete life savings to fund their children’s education. Parents in their 40s and 50s find themselves postponing retirement, liquidating assets or forgoing personal aspirations to meet these demands. Anuj Kumar, a middle-class father from Patna, exemplifies the struggles of many parents striving for their children’s dreams. He is grappling with the burden of a hefty Rs 25 lakh loan, taken to fund his daughter’s business administration degree at a private university in Pune. Her undergraduate education, including living expenses, amounted to an overwhelming Rs 30 lakh—far exceeding the family’s annual income of Rs 20 lakh.
In semi-urban and rural areas, the sacrifices are even more pronounced. Farmers sell land and daily wage earners take up additional jobs to afford private college fees. A 2016 study analysed two recent NSSO surveys to estimate expenditures and loans related to higher education. It found that households with at least one member pursuing higher education spent an average of 15.3% of their total expenditure in rural areas and 18.4% in urban areas on higher education.
More recent evidence suggests that Indian households spend nearly half of their annual income per child to afford professional higher education. The scenario abroad is not much different. Nations like the United States, Canada and Australia are witnessing soaring tuition fees that often leave families in debt. In the U.S., for instance, student loan debt reached a staggering $1.6 trillion in 2023. This financial burden has long-term consequences, leaving families vulnerable to economic instability.
The Unseen Price Tags: The Emotional Impact
The ever-increasing cost of education also takes an immense emotional toll on parents. Many grapple with feelings of guilt and inadequacy when they cannot meet their children’s aspirations. Others experience a profound sense of loss as personal dreams of starting businesses, pursuing higher education or traveling remain unfulfilled. These sacrifices are often unacknowledged but deeply felt.
The cultural emphasis on education as the ultimate equaliser further compounds this issue. Parents believe that their sacrifices will ensure a better future for their children, breaking the cycle of poverty and enabling upward mobility. However, reality often falls short. According to a recent ILO report, the unemployment rate for graduates stood at a staggering 29.1%, nearly nine times higher than the 3.4% for those who are illiterate. Many graduates are either underemployed or working in fields unrelated to their degrees, leaving parents questioning whether their sacrifices were worthwhile.
The Far-Reaching Consequences and the Potential Solutions
The financial strain caused by rising education costs extends beyond individual families. Families burdened by education loans often struggle to invest in other critical areas, such as healthcare, housing or younger children’s education. This ripple effect impacts societal stability and economic growth. Education, meant to be a cornerstone of progress, inadvertently becomes a source of impoverishment for many families.
Addressing this issue requires systemic change. While initiatives like the National Education Policy (NEP) 2020 aim to make quality education more accessible, additional measures are needed. Increasing the number of seats in government institutions, offering subsidies for private education, and expanding scholarship programmes can be a way forward. Public-private partnerships could also bridge the gap between demand and supply, ensuring that quality education is accessible to all. In addition, policymakers must also prioritise the creation of pathways that balance quality, affordability and accessibility.
To Sum It Up
The cost of education in India has far-reaching implications, not just for students but for entire families. As parents sacrifice their dreams to secure their children’s futures, it becomes imperative to question whether this should be the norm. Everyone deserves the chance to pursue their dreams and it is important that the goals of one generation do not come at the expense of another. To achieve this, we need to build a more inclusive and equitable education system, one that allows for shared opportunities across generations. Education should be a tool for empowerment like Smile Foundation‘s education initiative, not financial hardship. Society must recognise the sacrifices made by parents and work towards ensuring that everyone has the opportunity to fulfill their dreams.