1. 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 va@agere.com

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

3. 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.

4. August 16, 2001Education Day4 A Computer Eng. Syllabus

5. 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

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

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

8. 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.

9. 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.