US woos Indians with college degrees at Rs 5.3 lakh

October 9, 2012
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Washington, October 9: That American degree you so coveted and was unattainable because of high costs may not be so out of reach after all. Some US colleges have taken the first tentative steps to beat down soaring tuition fees by proposing a $10,000 (about 5.3 lakh) degree that also takes aim at the nearly trillion dollar college debt that the country has racked up.

The drive towards the $10,000 college degree will gee up students from India, more than 100,000 of who are enrolled in US colleges any given year. Although most Indian students come to the US for graduate studies, more and more are enrolling for four-year undergraduate degree, which some 10 Texas colleges are proposing to offer for as little as $10,000. Typical cost for a four-year undergraduate degree in a modest college for in-state US residents is around $30,000 ( 16 lakh).

But Indian parents, the wealthier among who are sending their children to four-year undergrad colleges after their Class 12, can rack up more than $100,000 enrolling in elite US institutions.

Higher education such as law degrees or two-year MBA degrees from top-ranked schools cost anywhere from $80,000 to $150,000.

While elite institutions and higher degrees may not feel the immediate effect, the first shot across soaring tuition fees in America has been fired by 10 modest Texas schools, following a challenge from the state governor Rick Perry to bring down costs. The 10 schools account for nearly 50,000 students, roughly 10% of undergrads at public universities in the state, according to the Wall Street Journal, among several outlets that described last months developments in this area.

First off the block is Angelo State University, a 7,000-student school in San Angelo in West Texas, which announced last week that it will offer a $10,000 degree starting next fall. Various schools of Texas Tech, Texas A&M University, and University of Texas have said they will follow suit. "A $10,000 degree provides an opportunity for students to earn a low-cost, high-quality degree that will get them where they want to go in their careers and their lives," Texas Governor Rick Perry, who ran unsuccessfully for the Republican nomination for President, said in a statement.

Not everyone is chuffed about the development. Some have argued that the quality of education will suffer. Others have spoken of fudged numbers, with suggestions that the $10,000 target does not include variables such as campus housing and text books. Fee lowering has been attained in some cases by proposing expansion in the size of class rooms, shifting some courses online, and use of adjunct faculty who will be paid on a per-class basis.

Nevertheless, the drive to lower costs points to growing recognition in the US that education is going beyond the reach of poor and middle-class families, and students often enter the job market with a massive debt burden -- a model India is also adopting with growing privatization of education. Both Republicans and Democrats have made this a talking point. Recent reports have shown that Americans owe nearly $1 trillion in student loans, substantially more than the $700 billion they owe in credit card debts.


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Agencies
July 13,2020

New Delhi, Jul 13: Top Congress leaders, including Rahul Gandhi and Priyanka Gandhi, are in touch with Sachin Pilot and are trying to placate him, a day after the Rajasthan Deputy CM declared open rebellion against Chief Minister Ashok Gehlot, sources said on Monday.

Pilot has claimed that the Ashok Gehlot government is in minority and that he has the support of over 30 MLAs in the 200-member Assembly.

According to sources, top Congress leaders have talked to Pilot and have asked him not to rebel against the chief minister. They also assured him that his grievances would be redressed at the party level.

For latest updates on Rajasthan political crisis, click here

Besides Rahul Gandhi and Priyanka Gandhi, other Congress leaders who are learnt to have spoken with Pilot are Ahmed Patel, former Union finance minister P Chidambaram and AICC general secretary K C Venugopal.

It was not immediately known what transpired during the discussions.

Sources said the leaders asked Pilot to attend a Congress Legislature Party meeting in Jaipur, but he has not given any assurance.

Pilot, who is in Delhi, has not been taking calls of many party leaders. AICC general secretary in-charge for Rajasthan Avinash Pande has said that Pilot has not been responding to calls and messages have been left with him.

Pilot has raised a banner of revolt against Gehlot after the special operations group (SOG) of Rajasthan Police sent a notice to him for appearing before it in the case involving "horse-trading" of MLAs in the state.

The SOG has registered an FIR in this regard and has also sent notices to the chief minister, chief whip of Congress and some ministers and MLAs.

Meanwhile, Congress has pulled out all the stops to save its government in Rajasthan and CM Gehlot has convened a meeting of the state legislature party.

Pilot, who is also the state Congress president, is miffed with Gehlot and has alleged that he was not being kept in the loop on key decisions.

The Congress Legislature Party meeting began about three hours later than scheduled, with ministers and MLAs flashed victory signs for the cameras.

The Congress said 109 MLAs have already expressed support for Chief Minister Ashok Gehlot, rejecting the claim by Deputy Chief Minister and the party’s state unit president Sachin Pilot that the senior leader does not have the majority.

About 100 MLAs had walked into the chief minister’s residence by 12.30 pm, an hour before the meeting actually started.

But some MLAs considered close to Pilot had not arrived till then. 

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News Network
January 21,2020

Jan 21: Indian policymakers may make it easier for companies to tap foreign funding, as a prolonged cash squeeze makes it tough for firms to borrow at home.

Investors are speculating about potential steps Finance Minister Nirmala Sitharaman could unveil when she presents the nation’s budget on Feb. 1. These measures may include freeing up firms to borrow at higher rates and offering tax breaks to global funds.

“The government will need to relax local rules to make it easier for Indian companies to raise debt overseas and tide over the funding crunch in the onshore market,” said Raj Kothari, London-based head of trading at Jay Capital Ltd. “At the same time, they need to ensure that the borrowers tapping offshore markets abide with stricter corporate governance so as to avoid further defaults.”

A prolonged crisis in India’s shadow bank sector and a pile of bad loans at traditional lenders is making it expensive for Indian companies, other than the best-rated firms, to access funding. The government has tried a series of measures to spur domestic credit, including providing so-called credit enhancement and allowing tiny firms to restructure debt.

Here are some steps Sitharaman may consider to spur foreign borrowing:

• She could raise the cap of 450 basis points above Libor, which limits overall foreign debt costs for Indian companies

• This could help lower-rated firms sell bonds abroad. Indian companies rated BBB currently borrow at more than 10%, about 3.8 percentage points more than their top-rated peers;

• Sitharaman could waive the withholding tax foreign investors need to pay on holdings of rupee-denominated debt sold by Indian companies abroad

• The waiver was offered between September 2018 to March 2019, but wasn’t extended as the highest global interest rates since the financial crisis deterred Indian borrowers. Since then, the three-month Libor has dropped by about 1 percentage point

• She could permit Indian property developers and housing finance lenders to sell overseas bonds for reasons beyond affordable housing projects

• New funding lines to the real estate sector, arguably ground zero of India’s economic slowdown, could help kickstart consumption and investment as the industry is the nation’s biggest job-creator.

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Agencies
July 11,2020

New Delhi, Jul 11: A notice which claims that a COVID-19 Monitoring Committee has been formed is fake, and no such committee has been set up by the Union Home Ministry, as per Spokesperson, Ministry of Home Affairs (MHA).

The "Fake" MHA order stated, "Pursuant to the official orders received dated: Monday, May 18, 2020, of the Honourable Minister of Home Affairs, passed in the approval of Special Status Advisory Committee for COVID-19, a COVID-19 Monitoring Committee has been constituted in the MHA vide order dated: Friday, June 12, 2020."

MHA Spokesperson also cautioned people to beware of fake news and rumours.

India's COVID-19 case count crossed the eight lakh-mark on Saturday with yet another highest single-day spike of 27,114 new cases in the last 24 hours.

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