No fee cap, rising costs as private schools tie up with financiers while parents struggle

Private schools in Bengaluru are increasingly partnering with private finance companies to offer education loans and EMI-based fee payment options, drawing sharp criticism from parents who view the trend as turning basic education into a debt-driven service.

With no fee cap or regulatory oversight in place, many schools have sharply raised annual fees while promoting tie-ups with financiers to help parents cover the rising costs.

Parent groups have flagged the practice, warning that it normalizes exorbitant fees instead of addressing the core issue: the absence of an effective framework to keep education affordable.

For nursery admissions alone, private schools in Bengaluru often charge between ₹1.5 lakh and ₹2 lakh.

This does not include additional costs such as transport, uniforms, books, and extracurricular activities, which can add up to ₹30,000. As the child progresses through school, the total fee burden continues to rise.

Parents said that several schools recommend specific finance companies offering education loans at high interest rates, making repayment difficult for many families.

“We are forced to bear the pressure of high-interest repayments, which often leads to financial stress. In most cases, families we know have even reported harassment by finance company agents when they struggle to make payments,” said Shalini Kamath, whose son studies at a private school in Brookefield.

Kamath added that many parents are unaware of the loan terms when signing up.

“Parents are rarely given a clear picture of the loan terms, including interest rates or repayment conditions. Without this clarity, many end up committing to financial agreements they cannot afford,” she said.

A school representative from Jakkur defended the move, saying that EMI options are being introduced to support parents who may find it difficult to pay the full fee at once. Parent advocacy groups, however, see the trend as exploitative.

BN Yogananda, president of the Karnataka Private School and Colleges Parents’ Association, said, “The education department and the state government must step in and initiate strict legal action against both the schools involved in such arrangements and the finance companies facilitating them.”

In April of this year, the Karnataka State Commission for Protection of Child Rights (KSCPCR) pulled up three private CBSE schools in Bengaluru over complaints of charging exorbitant and unjustified fees, including for textbooks.

Despite such interventions, the state still lacks a robust fee regulation mechanism. While schools are technically allowed to hike fees by 10% to 12% annually based on facilities, they are required to publicly display their fee structures and report them to the government. These rules are seldom enforced.

Minister for Primary and Secondary Education Madhu Bangarappa said that the department had not received any official complaints about such financing schemes.

He said the government's role was limited to improving public schools and that it does not have authority over the financial decisions of private institutions.

“If we try to fix fees, school managements will take us to court,” the minister had said earlier.

He also advised parents who cannot afford private school fees to shift their children to government schools.

Parents argue that such a response fails to address the financial burden on families and lets profiteering institutions operate unchecked.

“While the government can take strict action under Section 13 of the RTE Act against such violations, enforcement remains practically nonexistent,” said Mahesh K, a software engineer who is paying nearly ₹3 lakh for his daughter’s first standard education.