The cost of the two year MBA programs in India would vary ranging from a few lakhs and may go up to 35 lakhs from the most-sought-after institutes. Although people say don’t attach cost on knowledge, but it matters when someone is pursuing any professional degree course such as MBA while sometimes, also, by taking an education loan.
The current recurring fee structure of B schools offering MBA programs makes these courses more expensive in India. This hefty investment on fees is also a risk investment as, most of the B schools does not provide guaranteed placement. If we look at the placement data submitted by B schools itself to AICTE, a government body, only 35% of students get a placement at the end of the program. Looking at the dismal imbalance with such structure, idea of Pay after Placement model, wherein student pays fee only after he gets placed, seems need of hour. For any MBA aspirant enrolling themselves into institute working on this model will make better value proposition in all the aspects.
Benefits of pay after placement courses
The key benefit of pursuing MBA or other PGDM course from such institute is of not having loan for education additionally, the institute also shares a common objective of getting student placed in a good organization by offering a fee structure where the student will have to pay only after he gets job placement assisted by institute.
Responsibility of Your Career
The biggest perk of pursuing an MBA program that pays for itself is that, in this case, the college/ institute feels that it is their responsibility for placing each student in the corporate sector and only then they deserve a fee. This way, not only the student feels assured of getting a well-paid job after completing post-graduation, but also, it eliminates the financial risk involved while pursuing any professional course otherwise.
Eliminating the Need of Education Loan
Many times, the students take loans to pay off the exuberant amount of course fee charged at the beginning of their MBA course. This keeps them under the constant pressure of repaying the loan and as a result, they get quite distracted during their course duration. With a post-paid fee structure, the students can shift their entire focus on developing their industry accorded skills as they would be required to pay the course fee after they are placed in a well-paid job.
Build Trust among Students
The grave conditions of placements after pursuing a management course have led students to lose their trust over MBA institutes. The postpaid fee structure regains the lost trust between the students and the institute as according to it, the students would pay the course fee only after they are placed in the corporate sector.
Eliminating Student’s Risk
MBA institutes that let the students complete their course, offer them placement and then ask for the course fee, successfully eliminates the student’s financial risk. The students no longer have the doubt of being placed after they have put in the efforts and funds in the course. Not only that, they invest in the student since all the resources that went into making the student industry-ready is initially, at the expense of the institute and not the student.
The postpaid model for fee structure allows the student to pay their course fee from their own hard-earned money. This boosts their morale as they are no longer dependent on their family for the payment of their course fees. Also, the immense trust vested in them by the institute while preparing them to be industry-ready also takes their self-confidence to the next level.
(By Piyush Nangru, COO and Co-founder, Sunstone Eduversity)