Household Expenditure on Higher Education in India: What Do we Know and What do Recent Data Have to say?

Data from two recent NSSO surveys are analysed to provide estimates of expenditure on higher education and loans availed for higher education. The average share of expenditure on higher education out of total household expenditure is 15.3 per cent and 18.4 per cent for rural and urban households who participate in higher education. This average is higher in the southern states since individuals from these states are more likely to be enrolled in private unaided institutions where fees are higher and are more likely to be pursuing technical education. For reasons similar to mentioned above, individuals from southern states are more likely to have outstanding borrowings for education. At the all India level, poorer households are less likely to borrow possibly because they are risk averse and uncertain about future returns. [IGIDR Working Paper WP-2016-030].