Budget wishlist 2013: Make edu affordable for the middle class

As the countdown begins for Budget 2013-14, DNA finds out what Mumbaikars want from it. Today, two Vasai siblings Nicole and Alicia Minoz give a sense of what students expect it to be.

Education has become so expensive in the last few years that middle-class families cannot afford to send their children for higher studies. College and coaching class fees, even at the undergraduate level, have skyrocketed. This problem could be solved if the government invests more in higher education and comes up with institutes providing courses at lower fees.

The annual fees for self-financed courses like Bachelor in Accounting and Finance are Rs17,000– Rs18,000. Coaching classes charge around Rs21,000 to those preparing for competitive exams such as CAT. Class X students pay around Rs75,000 for coaching classes. How can middle-class families afford such courses when their incomes are not growing?

The government has been pushing banks for loans, but that alone is not the solution. Most students are afraid of taking loans because the repayment is very high, especially if they default. The Union budget should create a mechanism to simplify the procedure of getting educational loans.

Parents of students should get higher exemptions under section 80C of the Income Tax Act. Also, now that the government has withdrawn subsidies on gas cylinders, it should introduce education subsidies.

Also, the number of jobs are not growing. Many students are unemployed. If you are lucky enough to bag you first job, then the remuneration is so low which makes it difficult for them to repay their educational loans. The government should invest more in core sectors and boost job opportunities.