How to Plan for Your Child's Higher Education in India
Engineering vs medicine vs foreign — actual cost in 2040 and the SIP needed today.
Education inflation in India runs 8-10% annually — higher for medical and overseas programs. A course that costs ₹20 lakh today will cost ₹50 lakh+ in 15 years. Starting early matters more than picking the perfect fund.
Projected Cost in 2040 (15 years from 2025)
| Course | 2025 cost | 2040 cost @ 10% |
|---|---|---|
| Engineering (top private) | ₹16 lakh | ₹66 lakh |
| MBBS (private) | ₹60 lakh | ₹2.5 cr |
| MBA (top tier) | ₹25 lakh | ₹1 cr |
| UG abroad (4 years) | ₹1.5 cr | ₹6 cr |
Inflation impact: Inflation Calculator → https://calculatordesk.in/inflation-calculator
SIP Required (15 years, 12% return)
- ₹66 lakh corpus → ~₹13,200 per month
- ₹1 cr corpus → ~₹20,000 per month
- ₹2.5 cr corpus → ~₹50,000 per month
- ₹6 cr corpus → ~₹1.2 lakh per month (consider partial education loan)
Run your numbers: Goal SIP Calculator → https://calculatordesk.in/goal-sip-calculator
Where to Invest
With 15+ years, go 80-90% equity index funds + 10-20% Sukanya Samriddhi (if girl child). Switch to debt 3 years before the goal. SSY's 8.2% tax-free is excellent but its 21-year lock-in means it can't be your only vehicle for an 18-year-old's college.
SSY projections: Sukanya Samriddhi Calculator → https://calculatordesk.in/ssy-calculator
Frequently Asked Questions
Is education loan better than depleting savings?
Often yes. Interest on education loan is deductible under 80E for 8 years (no upper limit). And keeping your equity corpus invested for those extra years often beats the loan interest.
Should I buy a child plan from LIC?
No. Child ULIPs and traditional child plans return 4-6%. A simple combination of term insurance (on parent) + equity SIP outperforms by a wide margin.
What if my child decides not to study further?
The corpus is yours — redirect it to retirement, business, or gift for the child's home. No loss either way.