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115k CRL rank, 19k EWS Rank (Bihar) - 66.2% 12th (Dropper) - LPU B.Tech CSE Seat (7 Lakhs Loan, Refundable with 1k Deduction) - Help!

Ramalingam Kalirajan |7379 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 25, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jul 17, 2024Hindi

Hello, i have secured 1lakh15k CRL rank and 19k EWS rank from bihar,and my 12th percentage is 66.2 and i am a dropper. I have booked a seat in LPU in btech CSE, and i have to take loan of 7 lakhs for it. And the seat booking price is refundable with a deduction of 1k. What should i do please advice me.

Ans: 1. Academic Background:

Secured 1,15,000 CRL rank and 19,000 EWS rank.
12th percentage: 66.2%.
You are a dropper.
2. Educational Choices:

Booked a seat in LPU for B.Tech CSE.
Need to take a loan of Rs 7 lakhs.
Seat booking price is refundable with a deduction of Rs 1,000.
Financial Assessment
1. Loan Implications:

A loan of Rs 7 lakhs will accrue interest over time.
The repayment period may extend several years post-graduation.
Monthly EMIs could be a financial burden, especially at the start of your career.
2. Earning Potential:

B.Tech CSE graduates generally have good earning potential.
Research the average starting salary for LPU graduates in CSE.
Compare this with potential EMIs to assess affordability.
Alternative Options
1. Re-evaluate Other Colleges:

Consider other colleges with lower fees.
Look for government colleges or other private colleges with scholarships.
Utilize your EWS rank for potential advantages in admissions.
2. Cost-Benefit Analysis:

Compare the long-term benefits of the degree from LPU against the debt incurred.
Factor in job placement rates, average starting salaries, and career growth.
Financial Advice
1. Avoid Excessive Debt:

High student loans can impact your financial stability post-graduation.
Opt for a college with a balance of good education and lower fees if possible.
2. Scholarships and Financial Aid:

Apply for scholarships based on merit and need.
Explore financial aid options specific to your situation.
3. Part-Time Work:

Consider part-time jobs or internships during your studies.
This can help manage living expenses and reduce reliance on loans.
Decision-Making
1. Pros and Cons of LPU:

Pros: Good facilities, diverse student community, strong CSE program.
Cons: High cost leading to significant debt.
2. Explore All Options:

Revisit other colleges and financial aid possibilities.
Assess the return on investment for each option.
Final Insights
Prioritize minimizing debt while ensuring a quality education. Explore scholarships and part-time work opportunities. Make an informed decision based on thorough research and financial planning.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner,

www.holisticinvestment.in

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