For parents in Patna, it’s fast becoming a choice between sending children to reputed schools and planning annual excursions and other family activities. Obviously, the school fee gains prominence and the other plans are shelved without a debate.

Most schools in the state capital have hiked students’ fees by 10 to 20 per cent annually for the past three years. This continuous hike in the school fee has not only disturbed monthly budgets of families but also forced parents to compromise with other important things in life.

“The Christian minority schools are hiking the annual fees by 10 per cent for the past three years. Earlier, the hike was effected in alternate years. But ever since the central and the state governments started hiking the dearness allowance (DA) of employees and implemented the Sixth Pay Commission payscale, the schools, too, were forced to hike their fees as teachers started demanding more salary,” said Brother Felix, principal, Loyola High School.

Elite public schools like DPS, Radiant, Litera Valley and others have also hiked the annual fee and maintenance fee. “It’s a big burden for families with single earning member. I cannot even get a job at 40. So we have cancelled vacation plans and cut down on outings in the weekend,” said Pranita, a homemaker, whose two children study in a missionary school.

“Though the hike is 10 per cent, my financial burden has increased by 20 per cent and I am really in a fix as how to balance my budget. To add to that, my company did not give me any substantial increment this year,” said Parinita’s husband Alok Bhagat, who works in a private telecom firm.

Santosh Verma, a bank employee, is so upset with the fee hike — implemented by his son’s school on the pretext of building maintenance — that he is now seriously planning to pull out his son from the “expensive” school and admit him to a “cheaper” one.

“Some public school managements claim that they have implemented the Sixth Pay Commission payscale for teachers and non-teaching staff and so the hike is justified,” said Neena Sahay, a state government employee, whose seven-year-old daughter studies in a leading public school.

Patna-based CBSE regional office sources said school managements are empowered to alter the fee structure taking parents into confidence. “There is no such guideline in the CBSE board to direct the (CBSE-affiliated) schools on fee structure. The parents, at best, could sit with the school’s management and work out a reasonable fee structure,” said a source.

“Many schools have collected extra money with school fee even on the pretext of organising smart class concept,” said Ajithabh Jha, the president of a leading school’s parent-teachers association.

The Right to Education Act, too, has become a prime concern for private schools in the city. With the annual reimbursement amount expected to be between Rs 10,000 and Rs 12,000 per child admitted on underprivileged quota, schools, which have to implement RTE from this academic year, are planning a further fee hike from the next academic session. “The reimbursement amount is just not enough to sustain the cost of education and maintain the quality service being provided to the students. The sum being offered might be on a par with that spent in government schools, but it is meagre for private players,” said A.P. Das, the principal of MGM Public School.

Under the prevailing circumstances, a playschool can make one poorer by Rs 25,000 to 50,000 a year, while primary and secondary education in a private institution can cost anything between Rs 25,000 and Rs 1 lakh per year.

Paying such high fees could be a problem for many. Banks have now come forward to resolve this dilemma. Some nationalised banks have started offering education loans for children’s school fees, a phenomenon that began about a year ago. Earlier, education loans were offered only for professional courses. Now, one can avail them pay the school fees from nursery to senior secondary. Public sector entities such as Bank of Baroda and Central Bank of India in Bihar are offering this facility.

The loan amount usually varies from Rs 30,000 to Rs 1 lakh, but Bank of Baroda has an upper limit of Rs 4 lakh. Though one does not need an account with these banks to avail of the facility, account holders are given preference. Pradeep Salvatore, assistant general manager Central Bank of India, said: “We will give loan to a customer even if he does not have an account with us, but serving an existing customer will be our first priority. Another condition is that the school should be affiliated to ICSE, CBSE or any state education board.”

The loan is primarily meant to fund the tuition fee, but it can also be used to pay for other expenses, such as buying a laptop or any apparatus that may be required for projects. However, in such a case, the equipment will remain in the bank’s name as security till the total amount is paid. The loan amount can also be used to pay library, laboratory, hostel fees and purchasing books. C. Jha, senior manger, Bank of Baroda, said: “Generally, education loans are based on the parents’ or guardians’ income level and their capability to repay.”

The interest rates also depend on the income as well as the credit profile of the borrower. One could also get a concession if he or she provides a security or a collateral. The interest rate on such loans is around 12.5 to 14.75 per cent. According to the data available on a loan portal, Bank of Baroda charges 12.75 per cent interest per annum, while Central Bank of India lends at 13.75 per cent interest per annum. Some banks give a concession of 1 per cent in the rate if the loan is for a girl child.

Loans are also available to pay coaching fees. Rohit Mishra, an assistant at Patna secretariat, has applied for a coaching loan for his son, who is eager to join IIT-JEE classes. “I have applied for a loan to the Central Bank of India in my home town Muzaffarpur. The bank has assured to sanction it at the earliest.”

The loan for early yearly sub-limit is repayable in 12 instalments. The first instalment is to be paid 12 months after the first disbursement of each year’s loan component. For instance, if the bank has given the loan in April 2012, the repayment will start from April 2013. According to Section 80E of the Income Tax Act, the interest that one pays on an education loan is a deductible expense. Earlier, only the loan taken to fund professional courses came under this ambit. This has been amended from the assessment year 2010-11 to include vocational courses pursued after passing the senior secondary exam.