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 it is advised not to attach cost on knowledge, it matters when someone pursues any professional degree course such as MBA while sometimes, also, by taking an education loan.
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 risky investment as most of the B schools do not provide guaranteed placement. If we look at the placement data submitted by the B schools themselves to AICTE, a government body, only 35% of students get placed at the end of the program. Looking at the dismal imbalance with such structure, the idea of Pay after Placement model, wherein student pays fee only after he gets placed, seems the need of the hour. For any MBA aspirant enrolling oneself into an institute working on this model will make a better value proposition in all aspects.
Benefits of ‘pay after placement’ courses
The key benefit of pursuing an MBA or other PGDM course from an institute with such a structure is of not having to take out a loan for education. Additionally, the institute also will then share a common objective of getting student placed in a good organization.
Responsibility of your career
The biggest perk of pursuing an MBA program that pays for itself is that, in this case, the college/ institute realizes its responsibility of getting each of its student placed in the corporate sector to be called deserving for a fee amount from the student. This way, not only the student remains 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 for 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 only after being hired.
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 would regain the lost trust of the students and would ensure greater admissions.
Eliminating student’s risk
MBA institutes asking for the course fee after offering them placement successfully eliminates the student’s financial risk. They 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 students 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 no longer depend on their family for the payment of their course fee. 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.
(Piyush Nangru is the COO and Co-founder at Sunstone Eduversity)