College fees -- two words that can strike terror in the heart of any parent. And if their offspring decides to take a professional course, or decides to get a master's degree, woe betide the fond parents.
The minimum fee at an engineering college is Rs 35,000 (the better ones charge more), while an MBA can cost around Rs 200,000; at a foreign university the same comes with a tag of Rs 15 lakh (Rs 1.5 million) or so.
Yes, this is bad news, but here's worse. Banks are no longer offering study loans with the open-handed generosity of a few years ago, especially to students who plan to study abroad. The reason for this is that the default rate is rising in banks' education loan portfolios. According to a public sector bank official, the problem of default is worse in the case of overseas education, as students change their address without informing the bank.
Even students from prestigious engineering and management institutions default on their payments. And banks find it difficult to track them given the trend of job-hopping and city-hopping.
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