According to Flashaid’s recent user research conducted across tier 2 and tier 3 colleges in India, over 40% of students in non-premium institutions either delay or default on their tuition fees due to the lack of accessible financial support. This finding highlights a growing affordability crisis within India’s education system, where rising costs and limited financing options are becoming significant barriers to higher education.
India’s education sector is grappling with rising costs, and 44% of Indian parents report facing fee hikes of 50% to 80% over the last three years. Education inflation is running at 11% to 12%, well above the national average for consumer inflation, according to a LocalCircles survey. This is particularly concerning for families in Tier 2 and Tier 3 regions where access to affordable financial support is limited. In addition to this, even tier 1 colleges are witnessing significant dropouts. As per a survey by the Ministry of Finance(Economic Survey 2024-25), 4.33 crore students enrolled in 2021-22 in higher education in India.
The dropout rate is also higher in India’s centrally funded technical institutions, Rajya Sabha data show. Almost 40% of dropouts were from the Scheduled Caste and Scheduled Tribe communities, forming 88% of IIT Guwahati dropouts and 76% of IIT Delhi dropouts from reserved categories.
The highest dropouts were witnessed from Pune, Delhi/NCR, Noida, Lucknow and Karnataka and the courses that witnessed the most dropouts are Higher Education Courses like Engineering, Vocational Courses, Online Courses, and Professional Executive course.
Given the same, Flashaid has introduced Flashaid Smart Fee, a loan-free, auto-EMI-based tuition payment solution designed to make education more accessible for students across India. This innovative platform enables colleges, coaching centres, and vocational institutions to offer flexible fee payment plans without the burden of interest or lengthy approval processes.
In this context, Flashaid Smart Fee is developed to bridge the financial gap, especially for students in Tier-2 cities who often struggle to pay their tuition fees due to difficulties in securing traditional bank loans. By offering an easy, loan-free solution with automated EMI payments, Flashaid Smart Fee makes education accessible to a wider pool of students, while also helping institutions streamline their fee collection process.
“Education should be a stepping stone, not a stumbling block. Yet today, millions of students are being forced to choose between aspiration and affordability. With Flashaid Smart Fee, we’re not just offering a payment solution, we’re creating a financial safety net that empowers families to invest in education without fear or compromise. This is about unlocking opportunity, one EMI at a time”, says Mr. Manoj Gupta, Founder & CEO, Flashaid
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