Must Know: Rising education inflation
Education inflation is very different from the inflation that we refer to commonly. The rising cost of inflation can be best experienced by checking with any parent with school going children. The cost of college education, especially professional courses is further getting expensive. Just imagine the impact of a 10 per cent inflation on a 4-year engineering course that costs Rs 8 lakh today; it works to Rs 17 lakh after eight years. The cost to fund the education doubles faster than what most fixed return instruments offer, making it extremely necessary to save and invest for the future education needs of children.
Impact: Rising education inflation has made parents take the necessary steps to invest from an early period, but the way the going is, there is no harm in taking an education loan to fund education than solely depend on creating a corpus for junior.