press release value of education costs vs quality

8/9/2019 Press Release Value of Education Costs vs Quality

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News Release

This information is issued by

The Hongkong and Shanghai BankingCorporation Limited

10 September 2014

India least expensive destination for foreign education, Australia the costliest, says

HSBC survey

***Australia, Singapore and USA top the cost chart for university undergraduate education

globally***

***Indian education costs are the least among 15 countries, lesser than those in Turkey,

China and Mexico***

***USA perceived to provide the highest quality of education by Indian parents followed by

UK, Australia and India***

India has emerged as the least expensive foreign destination for university undergraduate

students among a list of 15 countries. Australia, Singapore and USA occupy the top three

positions in the expenditure chart for overseas students, according to HSBCs latest

survey - The Value of Educat ion: Springb oard for suc cess.

The average annual cost including university fees and living expenditure of an

undergraduate international student in India is USD 5,642, of which USD 581 is university

fees.

At USD 42,093 a year, Australiaa hugely popular destination for Asian studentsis the

most expensive option globally followed by Singapore at USD 39,229 and USA at USD

36,564. Overseas students need to spend on an average USD 35,045 a year for

undergraduate studies and living in the UK, according to the survey.

The comparative yearly costs stand at USD 12,627 in Brazil, USD 10,729 in China andUSD 9,460 in case of Mexico, the survey shows.

The report, which surveyed over 4,500 parents in 15 countries and territories, examines

parents attitudes and behaviour towards childrens education around the world.


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Sanjiv Sud, Head of Retail Banking and Wealth Management, HSBC India said:The

HSBC survey reasserts the perception that the quality of education is better overseas.

However, the fact remains that the costs of international education are substantially

higher.

He added, Education costs are lower in emerging markets such as India because the

state-run universities are heavily funded by the government and also the cost of living for

overseas students is lower here.

Country UniversityFees peryear(USD)

Cost ofLivingper year(USD)

CostTotalper year(USD)

CostRank

Quality ofEducationRank

% whorankcountry intop 3 for

Quality ofEducation

Australia $24,081 $18,012 $42,093 1 3 25

Singapore $18,937 $20,292 $39,229 2 6= 10

UnitedStates

$24,914 $11,651 $36,564 3 1 51

UnitedKingdom

$21,365 $13,680 $35,045 4 2 38

Hong Kong $13,444 $18,696 $32,140 5 7 6

Canada $16,746 $13,201 $29,947 6 4 20

France $247 $16,530 $16,777 7 6= 10Malaysia $2,453 $10,488 $12,941 8 9 3

Indonesia $4,378 $8,527 $12,905 9 11= 1

Brazil $59 $12,569 $12,627 10 11= 1

Taiwan $3,338 $8,573 $11,911 11 10 2

Turkey $1,276 $10,089 $11,365 12 11= 1

China $3,844 $6,886 $10,729 13 5 13

Mexico $750 $8,710 $9,460 14 11= 1

India $581 $5,062 $5,642 15 8 5

USA perceived to provide the highest quality of education

Indian parents perceive that USA provides the highest quality of education. About 62

percent of Indian parents ranked USA in their top three destinations for quality education,

the survey report shows.

Countries such as UK (54%) and Australia (47%) are ranked 2ndand 3rd in terms of

quality education by Indian parents followed by their home country (46%), according to the

survey. India however ranks 8

th

in terms of quality of education among the 15 countrieswith 5 percent of respondents putting the country in their top 3 preferred destinations.


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The report also suggests that Indian parents with higher household incomes are more

likely to regard the USA (69%) and the UK (67%) as providing the highest quality

education compared with parents with lower household incomes: USA (55%) and UK

(40%).

More than four in five (85%) Indian parents would consider sending their child abroad for a

better university education, the survey shows.

Expectations from overseas education

According to the report, Indian parents believe that foreign education offers some key

benefits to children.

Of the surveyed Indian parents, 62% said overseas education leads to international work

experience as an important advantage. It also offers other benefits such as openings to

opportunities in life (48%), instilling confidence (48%), exposure to new ideas (43%) and

income earning potential (42%).

Sanjiv Sud, Head of Retail Banking and Wealth Management, HSBC India said: If

Indian parents want to send their children overseas for quality education, they must have

a long-term plan to support the funding requirements.

He added, Long-term savings products and cross-border fund transfer services would

always be needed by parents willing to send their children overseas. HSBCs expertise in

financial products and its global footprint makes it the right bank for such aspirational

parents and their children.

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Media enquiries:

Kaustubh Kulkarni +91-22-22685393 [email protected]

Notes to editors

The 15 countries in the league table are those surveyed in The Value of Education: Springboard for success(see below).

The annual university fee for each country is calculated based on the average annual fee for anundergraduate international student studying at one of the 10 largest public universities in each country,where available. Annual fees data for each university are either sourced from the university website, byphone via their admissions departments or from other credible websites. Public universities are at leastpartly funded by the state or government, unlike private universities which are commercially funded.

The annual cost of living for international students in each country is based on the average cost of living in

the cities where the top 10 universities are located. Cost of living data for individual cities are sourced from


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the Expatistan website (www.expatistan.com)and calculated as a percentage variance from the cost of livingin London. The cost of living for each country is calculated by taking the average variance of all 10 cities.

The annual total cost for international students in each country is the sum of the average annual university

fee and the average annual cost of living.

The quality of education rankings are taken from The Value of Education: Springboard for successp.21.

Parents were asked to say which 3 countries offer the highest quality education (all levels) from a list of 51countries (including their home country). The quality rankings show the sequence of the 15 surveyed

countries in the list of 51 countries.

The Value of Education is a global consumer research study which explores parents attitudes andbehaviours towards childrens education. The first report, Springboard for success, represents the views of4592 parents in 15 countries around the world: Australia, Brazil, Canada, China, France, Hong Kong, India,

Indonesia, Malaysia, Mexico, Singapore, Taiwan, Turkey, United Kingdom, United States.

The survey was conducted online in December 2013 and January 2014, among parents who have at least onechild under the age of 23 currently (or soon to be) in education, and who are solely or partially responsible

for making decisions about their childs education. This independent research study was commissioned byHSBC and carried out by Ipsos MORI. The Value of Education global report was published in April and isavailable onwww.hsbc.com> Retail Banking and Wealth Management.

The Hongkong and Shanghai Banking Corporation Limited

The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group,which serves around 54 million customers through four global businesses: Retail Banking and WealthManagement, Commercial Banking, Global Banking and Markets, and Global Private Banking. The Groupserves customers worldwide from around 6,300 offices in 75 countries and territories in Europe, Hong Kong,Rest of Asia-Pacific, North and Latin America, and the Middle East and North Africa. With assets ofUS$2,671bn at 31 December 2013, the HSBC Group is one of the worlds largest banking and financial

services organisations.

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