How costs have changed
Tuition fees, particularly at private and deemed universities, have risen by around 5–10% annually over the past three to five years, according to Founder & CEO, CollegeSathi.
Public institutions have seen relatively limited increases, though access remains competitive.
Income growth for many households has been comparatively modest after adjusting for inflation. This has widened the gap between education costs and affordability for some segments.
How loan demand and ticket sizes have moved
Education loan demand has remained steady to slightly higher over the past year, driven by enrolment in professional and postgraduate programmes.
At the same time, the average loan size has increased compared to pre-pandemic levels. Loans that earlier ranged between ₹5–12 lakh have shifted closer to ₹6–15 lakh, reflecting higher tuition and related costs, as per Khatri.
Borrowers are also assessing total costs and repayment commitments more closely before taking loans.
How interest rates are affecting borrowing
Fluctuations in interest rates over the past two years have influenced borrowing decisions. Changes in rates can affect equated monthly instalments (EMIs) and the overall cost of financing education over long tenures.
As a result, students and families are paying closer attention to loan terms, repayment timelines, and expected post-study income.
How overseas education costs differ
Students pursuing education abroad face additional expenses, including living costs and currency fluctuations, which can increase the total cost of education.
According to Khatri, these factors can add to financial pressure and influence repayment considerations after graduation.
How learning formats are evolving
Online and hybrid programmes are being considered as alternatives in some cases. These formats can reduce non-tuition expenses such as accommodation and allow students to work while studying.
This can lower the overall cost of education and reduce reliance on borrowing.
How course choices are being evaluated
Demand continues in fields such as technology, data science, artificial intelligence, and business analytics, which are associated with employment opportunities across sectors.
Course selection is being evaluated in terms of potential returns relative to costs, including employability and expected income, as noted by Raviraj Khatri.
Overall trend
The higher education financing landscape is seeing a shift towards more cost-conscious decision-making, with students and families weighing tuition levels, financing options, and potential outcomes more closely.