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5 Future Challenges in Higher Education

Explore 5 major challenges in India’s higher education and learn how early financial planning can secure your child’s future.

Written by : Knowledge Center Team

2025-11-10

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6 minutes read

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India’s higher education system is one of the world’s largest education systems in terms of students. A lot of new parents or couples planning to have a child  consider their finances ahead of time so that they do not have to face financial obstacles later. An advanced approach of planning your finances will help you stay on track while enabling you to meet your life goals smoothly and as planned.

The rapid expansion of the education system in India has brought several significant issues along with access to higher education in the country and the associated cost.

Let us dive deeper and understand the pressing challenges of the higher education system in India.

Key Takeaways

  • India’s higher education faces challenges like rising costs, lack of practical training, and limited premier institutes.

  • Online education is becoming essential in higher education planning.

  • Early financial planning helps avoid last-minute financial stress.

  • Setting a clear corpus, investing in child insurance plans, and increasing your investment value regularly ensure a secure educational future for your child.

5 Challenges Faced in Higher Education

Pursuing higher education is a transformative journey, but it’s not without its share of hurdles. From financial pressures to evolving academic demands, students often face challenges that can impact their learning and future prospects.

Here are some of the challenges to explore:

  1. Online Education System: During and post-pandemic a lot of education systems have started imparting digital education. It is now quite evident that digital education is going to play a major role even in the higher education of your kids.
    In addition to that, educational institutions have been introducing online courses to help students learn skills that will shape their future. So, apart from paying the tuition fee, parents may also expect additional expenses for the courses their kids may wish to enroll in.
  2. Education as a Continuous Long-Term Engagement: For a large segment of professionals, education is the pillar as they believe in continuous learning and development. This means, for the first few years of professional life, external financial support may be important for the child.
    While continuous education is already indispensable for few professions like medical services, engineering and financial services, other professions are fast catching up.
  3. Economic Difficulties: This is one of the most common challenges of the higher education system. A lot of people are unable to send their kids to better colleges and hence, a lot of good students are missing out on opportunities. A lack of education funds might also be the reason for economic difficulty.
  4. Less Number of Premier Institutions: There are a lot of premier institutions in India, however, the number is still less considering the huge audience size. Also, not every student may want to stay back in India for their future studies. Some of the students may expect to go abroad and then pursue their future.
  5. No Practical-Based Training: You cannot find an education institute that is “one size fits all”. Different institutes have different teaching systems. One institute may put all focus on visual learning, some may focus on practical learning. This could be challenging for the students as well as the parents to find the right educational institute for their kids.

Why is Money Management Important for Education?

Beginning early planning for your child's education is one of the most important choices as a parent. Why?

  • Reduce the Price of Education: College-going expenses are constantly increasing each year due to inflation and increased tuition rates. Planning in advance makes your investments increase with inflation. This sets you up when your child is mature enough to attend college.
  • Take Advantage of the Power of Compounding: If you start saving early, your funds will have more time to grow. Compounding helps your investments grow over time, which makes it easier to avoid making big contributions later. 

Calculate here- Compounding Interest Calculator 

  • Reduce School Loan Dependence: Planning ahead creates a solid money safety net and lowers the need for loans that can make your child worry about paying back money early in their job. Starting debt-free gives them self-assurance and financial independence from day one.
  • Be Financially Flexible: Savings at an early age enables you to tackle other significant life objectives, like purchasing a home, retirement savings, or setting up an emergency fund, without impacting the education of your child. It avoids surprising financial problems upon college admissions.
  • Ensure That You Remain Calm: These funds makes you feel at ease to have funds saved for your child's education. You can focus on their overall growth, skill development, and mental health instead of rushing to formulate financial plans.
  • Prepare for Uncertainties: Life is unpredictable. An education fund protects your child's future aspirations in case you happen to lose your job, have health issues, or encounter unexpected hikes in education expenses. This maintains their learning goals on track without interruption.

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How to Prepare for Higher Education for Your Child?

Preparing for the higher education of your child is not an easy task. Even great financial resources are not a guarantee of success. To ensure that your child has a secure future, you must be equipped financially.

Listed below are three ways to prepare for the higher education for your child:

  • Set a Corpus: Before you start investing in a financial product for your child, set a fund amount. Work out a ballpark figure that you have in your mind and then buy a financial product as per the goal that you have set. It becomes easier if you have a rough estimation in your mind. Plan your investments accordingly.
  • Buy a Savings Plan or Child Insurance Plan: You should plan for your child’s future education with a savings plan or a child insurance plan. These plans offer a life cover along with a range of other benefits that help you plan a seamless future for your child. The best thing about buying a life insurance cum savings plan is the avenue to build your desired corpus.

For example,  iSelect Guaranteed Future plus by Canara HSBC Life Insurance is a life insurance cum savings plan that offers life cover and guaranteed maturity benefits. The plan also offers tax benefits up to₹46,800 under the prevailing Income Tax Act.

  • Keep Increasing the Desired Fund Value: With the increase in inflation every passing year, it becomes essential that you start saving for your child as soon as possible. This will give you more time to save as your child will be younger. With every passing year, the needs of your child will increase. To maintain a steady balance in your finances, keep increasing the amount you put into the investment fund whenever possible.

Despite all the preparation, information and action, you need to ensure that the fund you are building for your child will be enough for their future needs. Starting the investment early is the key to achieving your goals on time.

Child Education Calculator

A smart online tool that helps you easily navigate the costs of your child's future education, ensuring their dreams come true.

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2 My Child’s Dream and Needs Step Right Caret Icon
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4 Our Recommendation
About my Child My Child’s Dream and Needs Additional Details Our Recommendation
My name is {name}
my mobile number is {mobile}
You start investing when {name} age is: {initialAge} years
Maturity amount received by {name}
{name} becomes an {career} Professional
For {name} Education as: {career}
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{maturityAmount}
For remaining {remainingYears} years
To create a sum of {totalamount}
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The above calculation and illustration of figures are indicative only and not on actual basis.

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Final Thoughts

Higher education is no longer a choice; it is a necessity to build a successful career in today’s competitive world. However, rising costs, limited premier institutions, and changing educational trends make it essential for parents to plan strategically. Starting early, setting a clear corpus, and investing wisely are key to securing your child’s future.

Canara HSBC Life Insurance offers various child insurance and savings plans that help you build a strong financial foundation for your child’s education while providing life cover benefits. Begin your journey today to ensure that your child’s dreams are never limited by finances and that they have the freedom to choose the path they truly desire.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

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