A student who took a Rs 50 lakh loan for an international business program is facing financial distress following limited placement opportunities. The case highlights the high risks of financing expensive education without guaranteed career outcomes, as monthly EMIs far exceed potential starting salaries.
A recent social media post has drawn attention to the financial challenges faced by a graduate who took out a Rs 50 lakh education loan to pursue a Master of Global Business (MGB) program. The individual reports that despite the high cost and the promise of international career opportunities, they have struggled to secure employment, raising concerns about the return on investment for high-fee professional courses.
The Financial Burden
The graduate is currently managing a monthly Equated Monthly Installment (EMI) of approximately Rs 65,000. According to the post, the student’s efforts to seek a moratorium extension from the lending bank have been unsuccessful. This fixed financial commitment presents a significant challenge, as the current job market for their profile, based on the student's experience, often offers annual packages in the range of Rs 4–5 lakh. Such salary levels are insufficient to cover the loan repayments while meeting basic living expenses.
Placement Discrepancies
A central point of frustration mentioned by the graduate is the gap between the institute's promised career outcomes and the reality. The student claimed that out of a batch of approximately 85 participants, only six to seven secured positions through the campus recruitment process. Furthermore, the student noted that the program’s international components, which involved study stints in Dubai, Singapore, and London, did not provide the necessary legal pathways for local job sponsorship, limiting their career options to markets where the current demand for such roles remains muted.
Risks for Students and Families
This situation highlights several critical risks for students considering high-cost educational programs. First, the repayment obligation often falls on the student and, frequently, their parents who act as co-signers. A default on the loan can have severe long-term consequences, including a damaged credit score, which restricts the individual's ability to access credit for future needs like housing or personal loans. Additionally, if the primary borrower cannot meet the payments, the liability shifts to the co-signer, potentially endangering the financial stability of the family.
Assessing ROI and Career Planning
The case underscores the importance of thorough due diligence before opting for high-debt education. Prospective students are often advised to look beyond marketing materials and examine independent, verified placement data, alumni employment outcomes, and the specific market demand for the skills taught in such programs. When debt servicing costs significantly outpace expected starting salaries, the financial strategy becomes unsustainable, forcing graduates into a difficult cycle of seeking low-paying roles just to maintain liquidity, often at the cost of long-term career growth. As job market competition intensifies, the ability to balance the cost of advanced degrees against realistic earning potential remains a vital consideration for families and students alike.