Dear 998420,
Thanks for giving us a situation based analysis.
Some of the points that I would like to clear:
a) I am a current student of Batch 2011-13 at Hyderabad Campus.
Maybe your friends were students over there,but, I know the current
situation.
b) Secondly, you gave an analyis based on Loan of 10 Lakhs which is
the maximum amount which a student can avail for his domestic education
Now, I know, for any bank that you apply they will not sanction this amount
without considering your collateral and definitely you will be shedding more
from your pocket than mere 2 lakhs. So your Principal and Interest cost reduces.
c) Thirdly, even if you took a loan of say 10 Lakhs, and you are able to pay
as low as 7250 Rs p.m for 2 years your one installment of fees 174000 is done. Now rest includes your Loan Outstanding and Interest which you need to pay. Considering a Package of 5 Lakhs, either your time period will reduce or if you want the time period to remain the same, then your EMI will reduce as compared to your previous calculations.
As you rightly said ,All this is applicable to tier 2 colleges and even Tier -1 colleges except IIM's (that too only established ones and the others in same
category) but not all Tier -1 Colleges. I don't wish to name but you can get
the list at SBI website.
Note: I am not advocating that this college is best, I only want to say that RoI is different for every student and just cannot be generalized. For the Bottom 10% moving to 30%, the scenario might seem what you suggested but for the top 70%, they are out from loans in 2.5 years (Max).
Even if you go to top b-schools who take work-ex guys, fees is still an issue over there and those guys are also able to repay within 2 years and mind it their fees is almost twice or maybe less depending on Currency Fluctuations. So no-where will you get a free MBA (and by free MBA, I mean almost nil fees as compared to other schools), except for Govt sponsored ones but then not all govt. sponsored ones have made a mark. so yes it is a tradeoff of quality as well.