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Article | "Steep Fee Hike Contemplated at Indian B-schools"

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Steep Fee Hike Contemplated at Indian B-schools

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Other major B-schools like MDI, Gurgaon; TAPMI, Manipal; SP Jain, Mumbai and Goa Institute of Management are going the same way too.

TAPMI, Manipal has decided to affect a 50% increase in fees for its two-year
management course from Rs. 4.0 Lakh to Rs. 6.0 Lakh (all-inclusive, without food) from the 2008-09 session. MDI, Gurgaon too is raising its fees: from Rs. 6.0 Lakh to around Rs. 7.92 Lakh for its two-year flagship programme.

SP Jain, Mumbai will now charge Rs. 2.5 Lakh a year from the 2008 session, instead of the existing Rs. 2.0 Lakh a year. Goa Institute of Management is also planning to raise the fees for its two-year programme to Rs. 3.5 Lakh from the 2009 session, up from the existing Rs. 2.8 Lakh (all-inclusive, except food).

The institutes, in fact, are citing a number of reasons for the fee hikes. Some attribute it to campus expansion while others say it is to cover the cost per student. Some management institutions have been affected by the magnitude of the 40% hike in faculty salaries, set to happen at the IIMs following the Sixth Pay Commission recommendations.

End result: Students pay more, wherever they go.

The issue of fee hike in IIMs would be discussed during the meeting of the Directors with HRD Ministry in April 2008. If the Union HRD Ministry agrees to the IIM Ahmedabad fee hike, the decision is likely to be used as a precedent by other IIMs.

Concluded.

Attention Readers: Do you consider the increase in fees is justified? Do you think talent will suffer because of fee hike? Will you put your IIM plans on hold because of fee hike? Is going for student loan a solution to counter this move? Will the hike now put the much coveted IIM degree out of reach for many deserving students? Should there be a ceiling to which such fees can be hiked?

If you have an opinion on this fee-hike issue, and you wish to express it on CoolAvenues, Post Your Comments at MBA Forums,
OR,
Send in Your Articles / Write-ups to us at contribute@coolavenues.com.


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