MBA Fees 2020: 9 IIMs hike fees, yet AICTE stops XLRI, SPJIMR, MDI

In the grim situation of COVID-19 pandemic when job cuts and salary delays are rampant, top IIMs have chosen to increase their fee for the PGP 2020-22 batch. IIM Bangalore, IIM Calcutta and IIM Lucknow and many other IIMs have resorted to sharp fee hike. Yet, top PGDM colleges like XLRI, SPJIMR, MDI Gurgaon, IMI New Delhi and IMT Ghaziabad are not allowed to increase their MBA Program Fee by regulatar AICTE. Infact, PGDM B-schools have rolled back their fee structure following the AICTE guidelines, issued on May 1. While AICTE guideline is welcome and is in student interest, perhaps IIMs must follow restrain in these testing times.

Let’s see the recent fee hike by some of the old, new and baby IIMs:

IIM Fees Increase for MBA 2020-22 Batch
IIM Bangalore has increased its fee for 2 years PGP (MBA) program 2020-22 by 10%; IIM Calcutta has increased fee by 7%; IIM Lucknow has increased fee by 36%; IIM Rohtak has increased its fee by 13%; IIM Nagpur has increased its fee by 10% despite the Covid-19 pandemic instead of providing any relief to the students.

Source: MBAUniverse.com Analysis

IIM Ahmedabad, which increases fee every year in the range of 7 to 10 percent, has not yet announced its fee hike. IIM Kozhikode has already announced that it would increase its fee but is withohlding the fee hike as of now.

Top PGDM Institutes Roll Back Fee to Last Year Level
In its notification dated May 1, 2020, AICTE had asked the B-schools offering AICTE approved PGDM programmes, not to hike either admission or tuition fee for the academic session 2020-21 for existing as well as new students. AICTE also asked B-schools to relax fee collection norms.Issuing the instructions, AICTE notified “Colleges/institutions should not hike fee for the academic session 2020-21 nor should insist on payment of fees till the ongoing lockdown is lifted and normalcy is restored.”

All top B-schools who offer AICTE approved PGDM programmes have rolled back their fee structure as was last year.

Source: MBAUniverse.com Analysis

*Exact Fee Structure to be announced in a few days

IIMs Fee Hike: Wrong timing?
After passing of IIM Act 2017 by the Parliament, IIMs have gained much greater autonomy than Universities, which are governed by UGC, and B-schools offering PGDM Programs, which are governed by AICTE.

The proposed fee hike is more concerning as many IIMs including IIM Ahmedabad and Bangalore have already announced to commence new batch 2020-22 classes in online mode instead of class room sessions for first few months.

This development comes at an inopportune time when due to grim economic scenario student community is looking for lower MBA fees, at atleast no fee hikes. In a MBA Aspirant survey conducted by MBAUniverse.com in May 2020, 73% of  respondents said that they and their families are facing difficulty in paying MBA fees.

Commenting on this development, Dr H Chaturvedi, Alt President of EPSI & Director of BIMTECH Gr Noida said, “Leading PGDM institutions have withdrawn their fee hike on the advice of the AICTE because they felt that they should respond to the grim situation created by COVID-19. This is a matter of concerns IIMs, which were promoted by the Government and well-funded, did not hesitate to increase fee even up to 34% when large number of parents have been  in a tight situation financially.”

Dr H Chaturvedi added, “500+ PGDM institutions are unable to understand that whether MHRD can apply different parameters to government and private B schools?”

Stay tuned to MBAUniverse.com for more updates on MBA Fee