Notably, the Indian populace has displayed a strong inclination towards investing in education, as evidenced by the high income inelasticity of demand for educational services (0.93). Moreover, there has been a surge in household expenditure allocated towards education, which underscores the importance that society places on this critical sector.
Given these trends, it is imperative that we continue to harness the power of technology to promote education at all levels, especially amongst underserved communities. Moreover, we must work towards building a robust ecosystem that enables seamless access to educational resources, regardless of one’s socioeconomic background or geographic location.
As thought leaders, we must recognize that education is a fundamental driver of social and economic progress, and therefore, it is our responsibility to ensure that every individual has access to the tools and resources necessary to realize their full potential. By doing so, we can create a brighter future not just for ourselves, but for generations to come.
Increased access to education:
The widespread availability and affordability of smartphones and laptops have revolutionized the education sector, opening up a plethora of opportunities for learners. Edtech companies, (likes of Khan Academy and Simplilearn) offer a range of free solutions, while YouTube channels continue to provide quality content for students. With devices and the internet, content creators can now reach students in even the most remote areas, breaking down barriers and promoting equitable access to education.
Furthermore, platforms like YouTube offer content creators a convenient and cost-effective way to share their expertise with learners worldwide, without incurring any hosting or technical charges. This has enabled educators to monetize their content and create sustainable business models while also providing students with access to high-quality education at an affordable cost.
The technological advancements has had a significant impact on reducing the overall cost of education, democratizing access to learning and empowering individuals to take control of their education regardless of their geographic location or socio-economic background. This trend is set to continue, with technology serving as a powerful tool to facilitate learning and bridge the gaps in access to education.
Cost savings for institutions:
Offline setups require infrastructure investment as well as the time & energy required for travelling. Online education whether its apps with content, recorded classes or live classes has made a dent in this aspect. Edtech has helped institutions reduce costs associated with infrastructure and other physical resources. Online classrooms, digital textbooks, and other virtual learning resources have reduced the need for traditional classroom spaces and textbooks. Whether its K12 or upskilling; models such as live learning or a flipped classroom (where a student learns with recorded sessions and attends live one for query resolution) offer great advantages from a cost and reach perspective.
Increased revenue opportunities for institutions:
Edtech has also created new revenue streams for institutions. Online courses, certifications, and other digital learning resources are in high demand, providing institutions with new revenue opportunities. In the upskilling segment, new business models akin to buy-now-pay-later is take-now-pay-post-placement, this model allows learns to take relevant upskilling courses and pay back once they are placed (at a higher remuneration).
A lot of artificial intelligence (A.I.) driven companies are solutions that are able to give personalized experiences to students. ChatGPT has been another breakthrough, especially in education. If one learns to harness its power, it is quite useful for a range of activities from content generation, learning, quizzing, correcting, creating lesson plans, etc. It can even do Q&A and more and its error rates from improved by a margin from Version 3 to Version 4(getting to almost human like error rates). According to many, ChatGPT will provide to all what was available only to those who had the means earlier, i.e. private tuitions. This will be a landmark breakthrough.
Reduction in student debt:
Earlier with scarcity of reach as well as costs involved at the creator/manufacturer’s end, the costs used to be higher. Now with free as well as paid platforms, the overall cost to the learner has come down. With innovative solutions and freemium plans, students have access to a range of affordable and flexible learning options, reducing their reliance on student loans and, in turn, reducing the amount of debt they incur.
Better financial planning for students:
Edtech platforms can help students plan their finances more effectively. Today there are many student financing options available from EMIs to deferred payments schedules. In the K12 segment EMI options are available, in the upskilling segment EMI as well as deferred payment schedules are a boon the students. Especially when course costs are high and the learners are stretched these models offer a way out to students. By providing students with a clear picture of the cost of their education upfront and offering flexible payment plans, Edtech platforms can help students budget more effectively and avoid financial stress.
Challenges and risks:
While Edtech has brought many benefits to education financing, there are also challenges and risks associated with it. Consumer’s must do background verification, quality checks, check with past users, check on third party sites for reviews etc. Doing through due-diligence before investment money is a must. Today, YouTube is full with a variety of content creators, lots of companies may over-promise & under-deliver. Institutions and students must ensure that they choose reputable edtech providers that provide high-quality education and offer value for money by doing a through due-diligence.
Future of edtech in education financing:
The future of edtech in education financing is bright. As technology continues to evolve, edtech platforms will become more sophisticated, providing more personalized and effective learning experiences for students. Institutions will continue to leverage edtech to reduce costs and generate new revenue streams, making education more accessible and affordable to all. Overall it’s a great time to be a learner with the advancement in technology and the number of people/companies working towards providing fantastic solutions.
In other words, technology has revolutionized the education sector, promoting equitable access to education, democratizing the learning process, reducing the cost of education, and creating new revenue streams for institutions. It has also enabled learners to plan their finances more effectively and reduce their reliance on student loans, thereby reducing student debt. However, despite the tremendous progress, challenges remain in ensuring that every individual has access to education regardless of their socio-economic background or geographic location. As thought leaders, it is our responsibility to build a robust ecosystem that addresses these challenges, promotes innovation, and creates a brighter future for generations to come.
(The author is the Founder and CEO at PurpleTutor)
