Financing of Higher Education Dr. Varadraj Bapat Faculty in Accounting and Finance, Indian Institute of Technology Mumbai Email: [email protected] Contact: 9869083118/ 9892413119 24/06/22 1
Tuesday 2 May 2023 1
Financing of Higher Education
Dr. Varadraj Bapat Faculty in Accounting and Finance,
Indian Institute of Technology Mumbai Email: [email protected]
Contact: 9869083118/ 9892413119
Tuesday 2 May 2023 3
Tuesday 2 May 2023 4
“Education is the manifestation of the perfection already in
man.”
- Swami Vivekananda
Tuesday 2 May 2023 5
Indigenous Education
oBharat has a very long glorious history of education since ancient times. Indigenous education system was remarkably effective in addressing needs to the society at that time.
oMahatma Gandhi termed the glorious Bharatiya system as ‘beautiful tree’ of education and stated that this beautiful tree was destroyed by British.
Tuesday 2 May 2023 6
Indigenous Education
o Indigenous education was not a sellable commodity in India till 17th Century. It was always given free through the system of ‘Gurukul’.
oThis education was available to all sections of society. (all castes and religions).
oResearched by Dharampal (a great Gandhian thinker), based on British Records.
Cycle of Sustenance (यज्ञ)
VyashtiSamashti
Smaller Entity Larger Entity
Yogakshem
KarmaYajna
Karmafala
Tuesday 2 May 2023 8
Beautiful TreeoBritish destroyed the glory and essence
of ‘Shiksha’ and injected monotonous bookish education in India
oOur goal should be making education for all free of cost.
oAt present also, higher education is free in Germany.
Tuesday 2 May 2023 9
Commercialization of Education
oPost 1992, Nationailised Govt funded education system gradually is getting replaced by commercialization and education is becoming profit making service industry.
o Increased cost of education –
oMarginalized sections of the society are deprived of higher education
Tuesday 2 May 2023 10
Funding
Government
Corporate Sector Society
Tuesday 2 May 2023 11
Government FundingoMinimum allocation for education should be
6 % of GDP
oSufficient allocation for priority areas envisaged by the education policy
oThe U.S. Federal Government currently offers a 60 percent wage subsidy to employers of students engaged in work-study programs
Tuesday 2 May 2023 12
Corporate FundingoCompanies obligatory Corporate Social
Responsibility (2% of Profit)
o Investing CSR funds in education through charitable trust formed by Comapany
oFormation of trust will prevent corporate houses to engage in profit making activities through education and commercialisation of education
Tuesday 2 May 2023 13
Funding from SocietyoEducational institutes can acquire funds
directly from the society in the form of donations
oEffective Interaction with Alumni
oCommunity based institutions and universities should be promoted. It will increase social participation in education sector
oGovernment can allow income tax concession
Tuesday 2 May 2023 14
Good Governance and Transparency in Educationo Institutional Governance regulation needs to
followed in letter and spirit
oStandard practices for accounting, reporting and disclosure requirements for all financial statements
oAll transactions through Bank only. No cash holding in educational campuses.
Tuesday 2 May 2023 15
Good Governance and Transparency in Educationo It shall include independent trustees/
directors, audit committee, CFO, rotation of trustees/ directors, rotation of auditors, restriction on maximum number of trustees from the same family
oGood governance and transparency in education sector will attract investment from corporate and society (incl. Alimni)
Tuesday 2 May 2023 16
Exploring Funding Options
Scholarships
Cloud funding
Community Help
Tuesday 2 May 2023 17
Education LoanoEducational Development Bank should be
established to fund various educational activities at low interest rate
oRefinance of Educational loan and direct loan to institutions
oLoans may be made available through banks, micro-finance institutions, universities and colleges
Tuesday 2 May 2023 18
Education LoanoBanks may be encouraged to provide such
loans without asking for tangible security or income proof of the parents
oDematerialization of degrees will reduce chances of defaults
oEducation loan can be linked with CIBIL, Aadhar Card and Passport
Tuesday 2 May 2023 19
Open learning platforms
Technology Enabled Learning
(TEL)
Open and Distant
Education
Modular Education
Professional Certification
Tuesday 2 May 2023 20
Open examinationsoOpen examinations to evaluate participants
knowledge and certify them. (like CA, CWA, CS, CAIIB, AMIE). Such certifications by Govt. bodies and universities will significantly improve access to education for masses.
oFlexibility in course structure like transfer, rejoining, eligibility, examination etc.
oModular Education
Tuesday 2 May 2023 21
Technology Enabled Learning (TEL)
oMobile based courses needs to be promoted.
oFaculty should be encouraged to develop video lectures, video demos for practical and tutorials and content generation for TEL .
oCoursera, NPTEL, Khan Academy – Mass open courses
Tuesday 2 May 2023 22
Technology Enabled Learning (TEL)
oAwareness about effective use of Technology Enabled Learning (TEL) is the need of an hour and vis a vis availability of necessary infrastructure in colleges must be developed.
oTEL can be best used for Teachers’ Training. Courses can be designed and transacted through TEL every 2 to 3 months for teachers.
Tuesday 2 May 2023 23
Bridging Social GapsoTechnology Enabled Learning (TEL)
oGirls’ education should be free of cost
oThe ‘marginalized sections’ of society like scheduled caste/tribe, other backward classes and minority deserve special attention
oDifferently-abled (Divyang)
Tuesday 2 May 2023 24
Bridging Social GapsoDistance education is a very good system to
bridge the gender, age and social gaps. Online courses and technology driven teaching would go a long way in this regard. A network of such service centers has to be established to cater to these needs. Open examinations with certification facilily will enable girls and marginalized sectons to get access to education
Tuesday 2 May 2023 25
Bridging Social GapsoNeeds in terms of language, can be
addressed; education in Marathi and local tounges through Technology Enabled Learning (TEL)
oMaking education available in Indian languages and availability of good material in Indian languages will go a long way in accessing higher education to the marginalized sections.
Tuesday 2 May 2023 26
Bridging Social Gapso (e.g. Spoken Tutorial Project in IIT Mumbai
allows learning of Software in all Indian languages)
oUniversity needs to move from Teaching to facilitating Learning
Tuesday 2 May 2023 27
Learning with earningo Internship opportunities
ochange in outlook of teachers
oPart-time students
oModular Approach
Tuesday 2 May 2023 28
Foreign StudentsoAttracting Foreign Students
oUniversity needs change rules
oMarketing our education
Tuesday 2 May 2023 29
to get into act
31
Thank You!
Dr. Varadraj Bapat,Email: [email protected]
Contact: 9869083118/ 9892413119
Tuesday 2 May 2023 32