5 Ways A Pay After Placement Program Can Benefit You in 2023

It’s no surprise if you find Indian students not able to afford high-end courses to build high-growth careers, regardless of their ambition. Has sort of become a norm, you’d even say.Mainstream colleges and universities have almost become unaffordable for the average Joe out there. This leads to most students having to take huge loans to acquire quality higher education. And yet when they graduate, their careers might still be in jeopardy, given their lack of skills.

In fact, 9 million students graduate every year but a massive 75% aren’t able to make it to the corporate, white-collar workforce. Moreover, only 35% of students get hired at the end of an MBA program.

And you’ll see their loans counting on their heads as they don’t even have a job to pay back.

According to an article in the Times of India, 9.55% of loans extended by public sector banks were declared as non-performing assets for the financial year 2021. This amounts to about 3.5 lakh students who fell behind on their installments for more than 3 months.

This is indeed a sad state for the Indian Education ecosystem.

Prepaid college fees and colleges’ inability to provide ample placement opportunities (job-oriented education) put students in a downward spiral.

But what’s the alternative? Do they even have other options?

In comes – pay after placement!

Key Takeaways from The Blog:

The blog empathizes with the graduates of India having to pay a huge debt for a mediocre education with no guarantee of building their career and then takes you through a new, flexible option that’s on the rise – Pay After Placement Programs.The blog also takes you through 5 pay-after-placement benefits. These include:

• Easy Access to Education
• Programs Laser Focused on Job Requirements
• Shared Accountability Between Students and Institutes
• Eliminating the Student Loan Risk As You Pay Only After Getting A Job
• Way to A High-Growth Career

What is Pay After Placement?

Pay after placement is a concept where you only pay for the education & training after you get placed at a suitable salary. This concept is facilitated by a financial agreement between you and the institute termed Income Share Agreement.

In other words, with pay after placement, you can start studying at no upfront fee, finish the course, get a job, and then pay back for the training in the form of a fixed share of your monthly income.

In India, Pay after Placement has been emerging as a debt-free alternative to student loans, filling the voids created by the traditional education model. Outcome-driven institutes such as Masai School have come up today to provide industry-relevant training and placement in the areas of marketing and software development. And have already taken the leap by placing thousands of students in just two years!

So, let’s understand why pay-after-placement programs are on the rise. And why you could join one too:

Pay After Placement Facilitates Easy Accessibility to Education

With pay-after-placement programs, money does not limit your access to quality education. Anyone, regardless of their financial background can enroll in these courses and pursue their goals.Where traditional colleges demand huge fees, to begin with, these pay-after-placement courses start at zero upfront fees, thus giving financially backward students an equal shot at career success. All that matters is your ambition and will to take charge of your career.

In most cases, you take an entrance test and get admission without much hassle.

Pay After Placement Programs Laser Focused on Job Requirements

Another con of college administrations as we discussed earlier is – the lack of practical education. You’re reading this, you’d know.According to a Business Insider report , 80% of engineers are not deemed fit for professional roles in the industry.

You see, outdated curriculums in colleges don’t provide students with the know-how of the modern industry. This comes to light during college placements when students face rejection after rejection due to their inability to demonstrate hard skills and crack interviews.

Pay-after-placement courses solve this problem by providing education that fits their respective job roles.

At institutes like Masai, students become equipped with the latest tools and technologies. Every curriculum keeps changing to the needs of the industry. This helps them to easily adapt to employers’ demands from the get-go. After all, what’s the purpose of studying if one can’t translate their skills to work?

Pay After Placement Leads to Shared Accountability Between Students and Institutes

Unlike traditional colleges, pay-after-placement programs take accountability for students’ success. As their growth depends upon their placement numbers, these programs enable students in ways to build their careers, from finding ample placement opportunities to being there with students through thick and thin. Even if a student isn’t able to crack a job in the initial placement rounds, they remain in the hiring pipelines and wait for the right opportunity to arrive, and more often than not they eventually get placed.

That’s another reason why pay-after-placement programs have much higher placement rates compared to colleges and universities.

Eliminating the Student Loan Risk As You Pay Only After Getting A Job

Many college students are under the constant pressure of repaying the huge loans they’ve taken for the course.As a result, they’re not able to enjoy the learning process and instead get distracted by the ever-mounting pressure. Moreover, this might also lead to bad career decisions made in haste.

Pay-after-placement programs eliminate this risk with their post-paid fee structure. As the repayment completely depends on the student’s success, they no longer have to worry about what-ifs and whatnots and they can focus on learning the skills.

Way to High-Growth Career Because of Pay After Placement

Owing to the industry-relevant education, students often get placed in high-paying jobs with greater future scope. Most of the pay-after-placement programs declare a minimum income for students, and they are only supposed to pay for the course once they get a package above this threshold.

This minimum threshold income ensures that students start their careers on a high note and climb the ladder of success faster.

Conclusion

So, these were the 5 major reasons why you should consider pay after placement programs to build your career. However, we’ll advise you to do thorough research on these programs and their contracts before making the decision to join. Also, if you have other plans for a start-up or further education then pay-after-placement programs might not be the best option for you as most of the institutes require you to start working a job after the course so you can complete the payment process.

Pay-after-placement programs have been emerging fast and they are focused on promoting an outcome-driven education system in the country, one that we truly need. Especially for tier 2 and tier 3 students, institutes like Kraftshala and Masai are turning out to be the gateway to success.

If you’re looking to build a professional career without risking a fortune, a pay-after-placement program is the best thing there is. Period!

Check out the best digital marketing course for entry-level roles or freshers with no prior experience. Or if you’re interested in learning web development and building a high-end career in the software industry, head over to Masai School.

Frequently Asked Questions (FAQs)

What are the interest rates for ISA?

There’s no interest levied on the ISA payment as it’s not a loan. ISA companies work in partnership with NBFC partners, and they are the ones responsible for arranging the cash/money and hence will have the standard interest charges on the amount depending on the tenure selected. However, opting for the NBFC partner is still a choice that remains with the candidates.

For how long do we need to pay the installments for the program?

It completely depends on the tenure that is selected by the candidate, it generally varies from 6 to 24 months and the amount is directly paid to the NBFC partner. However, the candidates also have an option to directly make a one-time payment to Kraftshala and complete the process without any installments.

What if I don’t get placed in the placement cycles?

In the rare case, that you don’t get a job offer in the placement cycle after your program, the institute would still keep finding placement opportunities for you for a year.