A Master's and More

In Chile, a few weeks ago, frustrated by the current education system, students poured out on the streets demanding structural reforms in the sector. Three quarters of the universities in Chile are private. So, naturally education is expensive. Though the operators are barred from making profits but they resort to subterfuges and have set themselves as property companies that rent-out their premises to the universities.

Recently violent clashes broke out between youths and the police there. How many of us know about this development? Indian media, whose allegiance lies to one or the other business or political class, decided that the event is a no-news and hence no coverage was accorded (Swami Agnivesh at Big Boss was news). The same political and business classes, which have equity in media houses, have massive equity stakes in Indian private education too. Now, who would solicit a double whammy; a dip in colossal revenues and an ugly public debate as well?

Well, Chileans… Imagine their frustration. People descending on the streets to protest against unaffordable education and demanding free higher education. When street demonstrations occur, they are not random ruptures of frivolous bearings. They are reflection of years of cumulative anger where resentments are so overpowering that participants don’t mind putting lives at stake. What else can explain a readiness to surrender life than the conviction of the demand?

Back home, if all goes well, we will not see such ugly rifts, but what if we do? The sooner the State gets its acts together, the better it is. There is no regulation of private providers. Almost every one is functioning on their whims and fancies setting any fee structure they feel like.

State’s fees are affordable but it provides meager offerings. Where do I enroll for Master’s programme in Carbon Management or in International Education if I want to? Multi-disciplinary approach, diversity in State education system is zilch. Not only that, new-age programmes are light years away from being offered. For working professionals there is no flexibility for part-time offering or evening classes. How does one improve knowledge base; learn for the joy of learning or for better career-prospects? I will have to burn holes in my pocket to satiate my knowledge, turning overseas for my Master’s education, paying Rs 9-10 lakh for a distance learning programme!  What alternatives do I have? Indian private colleges? Hah? They only offer different flavours of MBA because that’s where the money is. Which private Indian college has Master’s in History or Zoology?

What choices do you have if you reside in an education –deficient country? Stepping on the streets in the only way out for long-pending structural reforms?

Chile, in the meantime, is making their protests continental, along with Colombia. The Chilean president has offered to increase the funding but it is said to be insufficient. It’s been six months of protest; let’s see what is in store for them.  But more importantly, at home, what is in store for us, besides the news that the leadership is attending ribbon –cuttings ceremonies at summits or heralding some expensive foreign university.

State's declining role in Higher Education

The October and September months are dedicated to national and international level conferences, seminars, summits and open houses. For the last three years, I have been attending these higher education ‘get-togethers” organized by various government and private bodies. It is not hard to condone the two topics that have been almost always the highlight in the debate list: Globalization of Higher Education and Internalization of Higher Education. I have come to realize that these two umbrella topics cover whole lot of sub-topics underlining only one aspect: Privatization is the panacea of all our higher education ills.There has not been a single topic which has focused on: Failure of State in providing quality higher education. 

 Why don’t national level debates happen on: State’s role in higher education in the last 30 years? Or ways to generate fund and increase allocation towards Higher Education or, How to expand academic offerings of a college? How many colleges are required in North East or in the back alleys of Bihar? I mean, there is no dearth of issues. Well, topics. But all that the organizing bodies freeze in on is an elitist debate on privatization; inviting several private operators, national and international speakers, and give them national platform to voice their interest, which is: “Open more doors for us, and please open them wide.”

By not focusing on the State’s failure, we are increasingly accepting the declining role of the State and we have stopped questioning its due responsibility with a sense of resignation. And our apathy increasingly legitimizes privatization.

Sooner than later, we all have to pay price for this legitimization. How? America is showing us how.  The free market State has higher education so expensive, that even average American pockets’ bleed paying for the cost. Most households fund the studies through student loans. The 2007 economic jolt has America still on its knees and students are defaulting on the loan repayments. As you read this piece, student outstanding loan sits at a staggering $757 billion. The total outstanding loan is likely to surpass $1 trillion soon. Settle down. There is more. The delinquency rates. It stood 8.8% in 2009. Some estimate that the default exceeds 10 % – ten times more than that for credit cards and car loans.

Here lies the similarity. Indian private education is also becoming off limits to middle- income families. So most end up taking study loans. Now connect the dots. If an average Indian starts defaulting on loan servicing, who loses? The nation- fretting on a heap of national debt.

 Of course, the vicious chain begins; owing to defaults, banks increasingly reject loan applications, and bright students are unable to afford private education,( the quality and variety of State education being questionable) and then the corporates crib on lack of talent and so on… I am not even stepping on the track of: talented poor students being outrightly rejected for loans adding on to the crisis of unemployable youths and miserable employability levels, thereof.  

Why isn’t it incumbent on the State to address the issues? Why does it want increased role of private operators? Why does it make clear case for them? Who is benefiting? And are we accept the diminishing role of the State?

Back to the US.  The US is now currently faced with a big question:  How to recover the loan? Various permutation and combinations are being discussed and demanded. From full –fledged bail out of borrowers to a phase curtailment of government lending, a payment relief as opposed to debt relief, forgiveness after 20 years rather than 25. Full or partial pardon, who will ultimately pay for the forgiveness? The taxpayers. Wish Americans had not let so much of capitalism march into their college corridors in the first place. 

 There is learning from US’s current scenario. Free market is limiting to the interests of average citizens. A bit of Statism (State’s role) not just in bail-outs, but more, is necessitated. 

It is not unrealistic for India to face a mountain of student loan debt in these unpredictable economic times. So who ends up bearing the cost?  Us. The honest taxpayers. I mean, how can one get sold on to the concept of privatization before questioning the reasons for the State’s failure?