Rs 2.1 lakh for class 3 in "regular CBSE"? CoinSwitch co-founder explains how rising school fees are forcing parents to take 'EMIs for nursery'

Sending children to school has become one of the biggest financial pressures for middle-class families today. The co-founder of CoinSwitch and Lemonn Ashish Singhal recently raised the issue in a LinkedIn post, calling out the high school fees in India.

“30% fee hike. If this isn’t theft, what is?” he wrote, summing up the frustration felt by many parents.

Rs 2.1 lakh for class 3?

Ashish shared his personal experience while looking into schools for his daughter. He was shocked to learn that many parents in Bengaluru are paying around Rs 2.1 lakh per year for Class 3, and not even at an international school, just a regular CBSE one.

“One parent told me the Class 3 fees are more than the cost of an engineering degree,” he added. This isn’t an isolated case. Across Indian cities, school fees are rising every year, often between 10% and 30%, far outpacing salary increases.

School fees growing faster than salaries

Official data says education inflation is around 4%, but parents are seeing a much bigger impact on their wallets. In cities like Ahmedabad, annual fees for Class 4 are close to Rs 1.8 lakh. Meanwhile, middle-class incomes have only grown by 0.4% per year over the past decade.

The result? Families are now taking out EMIs just to pay for nursery or primary school fees. “Forget saving for college,” Ashish said. “Parents are now borrowing money for nursery.”

Families under pressure

This growing gap between school costs and family incomes is pushing many to cut down on other expenses or dip into savings. Parents are juggling rent, transport, books, and uniforms while trying to give their children the best future.

“This isn’t just inflation,” Ashish wrote. “It’s erosion, of savings, of peace of mind, and of family dreams.”

Once seen as the pathway to better opportunities, education is now becoming one of the biggest monthly bills for families. Ashish urged those working in banking, fintech, and policymaking to take notice.

“This is your user,” he said. “Struggling quietly, cutting corners, still showing up. Find ways to make them win.”