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A Money Spinner
by Nathalia Jones, The Business Line-Life

July, 28, 2004,An analysis by IDP Education Australia put education as 'Australia's third largest service industry after tourism and transportation'. The current figures released by the Australian Bureau of Statistics (ABS) estimates the net worth of education in Australia somewhere in the region of (Aus.)$4.12 billion.

Another set of statistics issued by Campus Abroad, Chennai, reveals that every year, no fewer than 2,000 students from India go to New Zealand to enrol in courses such as Information Technology, Management, Finance, and related subjects.

Dr C.B. Paul Chellakumar, Group Chairman, Campus Abroad, Chennai, says this number will continue to increase by as much as 15-20 per cent every year, with an increasing demand for higher education overseas. Next to China, foreign universities are constantly seeking out India to recruit students for their various study programmes. But this is not due to a 'soft corner' for Indian students, he points out. "First of all, the quality of Indian students is second to none, because the Indian Education system is such that it accustoms students to hard work. Second, foreign students pay four times more for any course than local students. Universities are naturally, cashing in on the opportunity."

And, though the preference for US as `the land of opportunity' continues, there is good demand for Australia and the UK. Other countries such as Ireland, Russia, New Zealand, Germany and even Cyprus, are seeing increasing enquiries for the varsity programmes.

Says Raccquel Shroff, Manager, IDP Education, Australia, "Over the years the Indian market has matured. This is mainly due to access to information, because of which students can make an intelligent informed decision, instead of just blindly following their peers. Now, more than ever, there is an increasing awareness of other quality educational opportunities."

Australia entered the race somewhere around 1989-1990, and in 2001, its growth increased by 10.8 per cent, outdoing even the rourism and transport services industries, according to ABS.

"Most of our enrolments are at the post-graduate level because it is only at that level that we don't have centres of excellence. We have admissions for Engineering, the Sciences, Health Science and Management," she adds.

Emphasising that statement is the long queue at the IDP office in Nungambakkam, Chennai, and when one parent was asked why he was sending his son abroad to study, he had this to say. "We did try a few Indian universities but were told that we would have to wait a year at least, so we decided to send him to Sydney to do his post graduation in International Business." This, says Raccquel is another reason why students going to the UK or Australia have no problem fitting in with the academic system, because it is similar to the one schools and colleges follow in India.

In Switzerland, too there are a substantial number of Indian students because the country offers the best programmes in hospitality management. Says Chellakumar, "Switzerland has professional schools which pay students during their professional training. Moreover, visa processing is easy and the chances of landing a job with a reputed chain of hotels are high." And the cost of education is a maximum of Rs 10 lakh per year, including cost of living. Compare this to studying in the US, where you would have to shell out anywhere between Rs 8 lakh and Rs 10 lakh up front; you get quality education for the best bargains, he adds.

Speaking of the best educational bargains, Russia Speaking of the best

educational bargains, Russia is rapidly expanding as an education destination for many Indian students aspiring for a degree in medicine. "The reason students are flocking towards Russia is because the cost of studying is really affordable, figuring around Rs 1 to Rs 1.5 lakh per year including accommodation. The only drawback is that not all of these institutions, which offer medical degrees, are recognised by the Medical Council of India," says Chellakumar. But he insists that considering the exorbitant admission rates of medical colleges in India, Russia is still a good option for students.

Which brings us to an important component of foreign education the high cost. Both Raccquel and Chellakumar concur on the drastic shift in mindset when it comes to parents investing for their children to study abroad. They have accepted the concept of spending on education for their children. Says Raccquel, "The demand for higher education is considered a good investment, because for a majority of Indians an International education means global career opportunities." An often heard refrain from prospective students at the IDP centre is `Studying abroad is a passport to a global career.' This translates into better-paid jobs, a chance to work with international organisations and build international networks, she adds.

And facilitating the `passport' to that global career are the educational loans, which banks are sanctioning by the hundreds.

Dhanasekaran, Chief Manager, State Bank of India, Chennai, says, "SBI gives educational loans up to Rs 15 lakh. Over the last two years the loans for studying overseas have increased three fold. The interest rates for educational loans have also come down from 13.5 per cent to 11.85 per cent." Zero processing charge, easy recovery procedures the moratorium or the repayment period is three years plus one year after the completion of the course rapid foreclosure of loans during the course period, which is possible without penalty, are also contributing to the rush towards a foreign degree.

"Recently SBI conducted a mela during which educational loans amounting to Rs 4.01 crore were sanctioned," he adds. This against a total of Rs 3.6 crore with was disbursed during the last two years as educational loan. The absence of collateral for amounts up to Rs 4 lakh is also another booster to an aspirant for education in a foreign university.

So, does this mean that an international education results in substantial foreign exchange for the country ? Dhanasekaran is positive it does. Here's how. Studying overseas increases the earning capacity of students. And, once they find good jobs, they tend to invest in real estate projects or other businesses in India."

However, the only possible loss that India would incur is in the form of evaluating exams such as the IELTS, because the fee has to be paid in foreign currency.

Nevertheless the race continues, with countries such as Canada and Ireland drawing students to their cloisters. "Canada is next to the UK with regard to higher education not only because the cost of education is 40 per cent less than in other countries like the US, but also because many think that it facilitates an easy entry to the US," says Chellakumar.

Germany, which is becoming hot property on the university lists, offers free education to its international students! "For the past three to four years Germany has been picking up. There is no tuition fee and research facilities are good," he adds.

Of late, even Dubai is offering higher education. "A few American schools are setting up shop in Dubai and offering courses to those students who are interested," he points out, adding that at this rate he sees only an upward trend in the demand for higher education. "I wouldn't be surprised if even Pakistan steps forward and offers study programmes to students," he laughs.

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