August 16, 2001Education Day1 The Cost of Engineering Education and Who Should Pay? Vishwani D. Agrawal Agere Systems, Murray Hill, New Jersey, USA and Rutgers University

August 16, 2001Education Day2 Contents Purpose of higher education A syllabus Cost Finance Conclusion

August 16, 2001Education Day3 Purpose of Higher Education Most Important: Be a responsible and useful citizen. Important: Be a self-learner and creator. Important: Be a communicator. Important: Be a knowledge expert. Important: Be a problem solver.

August 16, 2001Education Day4 A Computer Eng. Syllabus

August 16, 2001Education Day5 Cost Model: Assumptions Students on campus: 1,000 Faculty: 100 Support staff: 100 Infrastructure: land, buildings, labs, 30 year financing Operation

August 16, 2001Education Day6 Cost Infrastructure: 100 sq. Rs. 10k/sq. ft. –Rs. 40M/year Rs. 500,000/person –Rs. 100M/year Operation: Rs. 50,000/person –Rs. 60M/year Total cost = Rs. 200M/year

August 16, 2001Education Day7 Per Student Cost Rs. 200M = Rs. 200,000 1,000

August 16, 2001Education Day8 Finance Options Student pays Rs. 2 lakhs annual tuition. Student pays Rs. 2 lakhs/year from bank loan, which is paid back upon employment. College provides tuition loan, which is paid back by student upon employment. College runs like a publicly owned business.

August 16, 2001Education Day9 Conclusion Engineering curriculum must include humanities (ethics, economics, communication skills). Self-learning skills are most important. High cost of standard education is justified by increased productivity. Public-ownership model has merit; a high return on investment may be possible with highest quality of education.