Foreign education is the dream of many students, but when it comes to investing lakhs of rupees it is a difficult decision. It would be wise to compare the return on investment over the years to understand the decision. Here, we are comparing three study destinations for Indian students, i.e. Canada, UK and Australia, based on four parameters.
Parameters include average income before and after taking the course, direct costs (tuition fees, living expenses), opportunity costs (professionals who plan for higher education after a few years of work, sacrificing annual salary and amount of experience). are), and education loan price.
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Here, we are selecting Masters in Computer Science to make the comparison easy.
UK
The return on investment in education from the UK has improved significantly since the announcement of the Graduate Immigration Route (GIR), which allows students to stay back in the country for two years. The new point-based immigration system introduced after Brexit has also increased the number of Indians seeking skilled worker visas by 43 per cent in 2021. While the number of Indian students accepted for visas cannot be determined, the numbers look promising for the Indian youth.
Talking about the investment required to study in UK, the average cost of education for an Indian student for a masters degree in computer science is around Rs 30-35 lakhs. Also, the living expenses, while largely dependent on the city, can range from Rs 1-1.5 lakh for a month. The total investment to study in UK would be around Rs 40 lakhs, for which a student usually takes an education loan of Rs 32-35 lakhs. The student can expect to earn an average salary of £26,351 to £41,454 (Rs 25 to 45 lakhs) after the course.
Assuming that the student did not earn prior to pursuing a Master’s in the UK, the ROI remains exponential in terms of salary, global experience and growth 3 to 6 years down the line.
If the student was earning a salary of Rs 5 lakh per year in India, the ROI for STEM degrees would be higher, which are in demand with salaries even for entry-level jobs starting at Rs 25 lakh. Even if the student is admitted to any university that falls in the 250-500 rank bracket, the returns look promising as over 143,000 jobs will be created in the STEM sector by 2023.
If the student was earning a salary ranging from Rs 15 lakh to Rs 25 lakh, the ROI would be negative as the opportunity cost would be higher. The student will forfeit the annual salary, experience gained on the job, and the resulting increase in salary over the two years that he will invest in pursuing the course. There will be no importance of university rank as a post graduate student will be looking for mid level jobs only.
Canada
Canada is one of the preferred study destinations for overseas education due to the long post-study work visa and easy PR options. The maximum period of stay in Canada after a Masters is 3 years. The average tuition fee for a master’s degree in computer science is Rs 25 lakh to 30 lakh. Additionally, the annual cost of living is around Rs 8 lakh. Students can expect the total expenditure (study + living) to be around Rs 46 lakh, out of which students usually take an education loan of Rs 25-28 lakh. The remaining expenses can be managed by part-time jobs, in which a student can work up to 40 hours a week and earn around 20 CAD per hour. The average base salary after completing the course is 55,000 CAD (Rs 33 lakh).
Now, to compare the ROI on education from Canada, if the student is earning Rs 5 lakh in India, the ROI for the course will be positive and high even if the student is studying in a university ranking from 251 to 500.
If the student is earning up to Rs 15 lakh in India, the ROI will be positive and higher if the student opts for a university ranking between 50 and 100, as the opportunity cost, investment and education will be lower as compared to loans. Average salary after graduation.
If the student is earning up to Rs 25 lakh in India, the ROI will be negative as the opportunity cost for a student even from a top university will be extraordinary.
Australia
The country recently opened its borders to international students after two years of strict COVID-19 protocols. Several provisions have been introduced to attract international students, including increased part-time working hours, waiver of visa fees and new scholarship schemes (Australian Friendship Scholarship Program). The duration of stay for a postgraduate student is 2 years. The average annual cost of a master’s degree in computer science is 38,000 AUD (approximately Rs 23 lakh). The total cost of education in Australia is 65-70 lakh rupees, which includes the annual cost of living around 12 lakh rupees. To cover the cost of education in Australia, the education loan amount usually runs from ₹40 to ₹50 lakh, with a student earning AUD 19 per hour with a part-time job (40 hours every fortnight) to cover the remaining expenses. can manage. The average annual salary after MS in CS is Rs 30-35 lakhs.
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To compare the ROI, a student earning Rs 5 lakh in India will get a positive and higher return on his investment in education from Australia if he secures a seat in the top 500 universities.
A student earning Rs 15-25 lakh in India will not get any positive return on investment as the average salary after graduation will not cover the opportunity cost and education loan EMI.
The return on investment in education from each of these countries will depend on the student’s current salary and growth prospects in India. However, after analyzing each country’s ROI for each salary slab, Canada has a better return on investment for students. After comparing investments in master’s degrees in different countries, investment in education in Canada is relatively moderate, with similar starting salaries and longer stay options.
– Written by Ankit Mehra, CEO & Founder, GyanDhan
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