Sir,my aim was to study cse, now I have got electrical and computer in Thapar which costs around 5.4lakhs pa, amrita amaravati campus cse which costs around 3lakhs pa tuition fees, so it will go around 4-4.5 pa(including everything), and IEM in Kolkata IT branch which will cost around 7-8lakhs for 4years. Sir please guide me, money is not that much of a factor but I don't want to use my father's hard earned money, and would like to take a loan if the budget goes over 10lakhs. Sir please help me out as I am confused. Thank you.
Ans: Evaluating Your Options
You have three educational options:
Electrical and Computer Engineering at Thapar Institute.
Computer Science Engineering at Amrita Amaravati.
Information Technology at IEM Kolkata.
Let’s break down the financial aspects of each option to help you make an informed decision.
Cost Analysis
Thapar Institute:
Annual Cost: Rs 5.4 lakhs
Total for Four Years: Rs 21.6 lakhs
Amrita Amaravati:
Annual Tuition Fee: Rs 3 lakhs
Total for Four Years (including other expenses): Rs 12-15 lakhs
IEM Kolkata:
Total for Four Years: Rs 7-8 lakhs
Budgeting Considerations
Thapar Institute:
High Cost: The total cost of Rs 21.6 lakhs is significant.
Loan Requirement: Given the high cost, you might need to take a substantial loan, especially if the budget exceeds Rs 10 lakhs.
Amrita Amaravati:
Moderate Cost: Total cost is around Rs 12-15 lakhs, more manageable.
Potential Loan: You might need a smaller loan, making repayment easier.
IEM Kolkata:
Low Cost: Total cost is the most economical at Rs 7-8 lakhs.
Minimal Loan: If at all required, the loan amount would be minimal.
Personal Finance Impact
Parental Contribution vs. Loan
Thapar Institute: Requires a significant financial outlay or loan, impacting your family's finances. If a loan is taken, ensure that the interest rates and repayment terms are favorable.
Amrita Amaravati: More balanced in terms of cost. You might need a smaller loan, which would be easier to manage and repay.
IEM Kolkata: Least financial burden. If you prefer to minimize your family's financial stress, this is the best option.
Long-term Financial Planning
Return on Investment (ROI)
Thapar Institute: High ROI potential due to its strong reputation and placement record. However, the high initial cost needs to be justified by future earnings.
Amrita Amaravati: Good ROI with moderate costs. As it aligns with your preferred field (CSE), it offers a balanced investment with potentially good returns.
IEM Kolkata: Economical with good placement opportunities. Offers a favorable ROI with the least financial burden.
Loan Repayment
Thapar Institute: Higher loan amount means higher EMIs. Ensure you have a clear repayment plan based on your expected starting salary.
Amrita Amaravati: Moderate loan amount results in manageable EMIs. Easier to handle with a decent starting salary.
IEM Kolkata: Minimal loan requirement, if any. Loan repayment will be the least stressful.
Emergency Fund and Savings
Regardless of your choice, maintain an emergency fund for unforeseen expenses.
Plan to save a portion of your income post-graduation to build a financial cushion.
Final Insights
From a personal finance and budgeting perspective:
Amrita Amaravati strikes a balance between cost and your preferred field, making it a prudent choice with manageable financial implications.
Thapar Institute is a significant investment with potentially high returns but requires careful financial planning due to the higher costs involved.
IEM Kolkata offers the least financial strain and is a good option if minimizing costs is a priority.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in