Policies to help reduce education expenses for middle-class families in India should target private fee regulation, greater public funding, and direct financial support, alongside tax and loan reforms.

Key Policy Solutions

1. National and State Fee Regulations Enforce strong, unified fee cap laws for private schools and colleges, limiting annual fee hikes to 10–15% over three years.

Increase transparency: require all institutions to clearly publish fee structures and ban hidden charges labeled as “development” or “infrastructure” fees.

2. Raise Public Education Spending

Expand government funding to achieve the target of 6% of GDP for education, enabling better infrastructure and reducing dependence on expensive private institutions.Support more scholarships and subsidized seats for middle-class and lower-income families, not just the poorest.

3. Tax and GST Reform

Make all core education (tuition, books, uniforms, transport, stationery) GST-free, not just for public institutions but also private and online learning platforms.Expand and promote Section 80C tax deductions for tuition fees, and introduce new allowances for ancillary education expenses.

4. Affordable Loan and Digital Support Widen low-interest, collateral-free education loan schemes like Vidya Lakshmi for middle-class families, with digital voucher systems and interest subsidies.Streamline repayment options to prevent student debt traps.

5. Expand Access and Flexibility Implement modular degree programs and multiple exit options via the National Education Policy (NEP) 2020, allowing students to obtain certificate, diploma, or degree as per affordability.Promote remote and vocational options to reduce living costs for outstation students.

Additional Steps Strict enforcement and expansion of State Regulatory Committees to monitor school and college fees at district levels, with strong penalties for violations.

Equity schemes: reserves for middle-income students in top-ranking institutions and more inclusive scholarships.Encourage public-private partnerships for affordable, high-quality blended education.Implementing a mix of fee caps, GST reforms, public spending, transparent loans, and flexible educational pathways can significantly reduce financial stress for India’s middle-class families, making quality education affordable and accessible.