- "IIT Alumni have helped generate, directly or indirectly, 15 to 19 million jobs over the last 50 years. On an average, an IIT Alumnus is associated with the creation of around 100 jobs. Close to 71% of the jobs generated, directly or indirectly, by IIT alumni are in India.
- IIT Alumni have been associated with incremental revenue addition to the tune of USD 200 billion over the last one year (2007). Overall, close to 50 percent of the incremental revenue addition is accounted for by the alumni based in India. Incremental revenue addition is defined as the percentage increment of the revenue by the alumni in managerial positions is responsible for.
- 8% of IIT graduates work in social sector transformation."
By any metrics, this return is several times larger than the investment.
It suggests that it is highly difficult to pay back the loan, contrary to perceptions.
- Obvious things first - graduates have to live on zero or meagre savings for 5-7 years.
- Students planning to pursue higher studies - masters and Ph.Ds. This includes a significant section of people who pursue academics in the engineering field. Higher studies is no longer an option with this loan.
- Students who want to pursue jobs in the engineering field. The salaries in the engineering field are much lower compared to IT jobs. The median for that is much below 8 lakh per annum. It's a huge dis-incentive to those who want to pursue actual engineering. It indirectly encourages students to take up non-engineering jobs.
- Students who might possibly start a company.
- Students who pursue interests in the social sector.
- Lasst but not the least - high potential students spending productive years of life to pay off the loans.
4. What about other countries?
For every America, there is a Germany where all higher education is free. So, let's focus on India and what's needed for India.
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