Calculate and design a framework for students to choose their dream college.

Question

Calculate and design a framework for students to choose their dream college.

A student graduating from, let's say, B. Tech in IT from a general college in India and getting a job of INR 4 lakhs. He plans to do Masters from abroad in fields related to computer science, AI, data science or finance or management. He is concerned about the job prospects abroad and loan payback period post his masters. He is also confused between which countries to choose for a better future prospect in terms of higher employment compensation (salary) He is also in doubt if his abroad education can make a difference if he plans to come back after 2yrs to India and join a company here. Now how will he get an understanding of how a course from – a. USA b. UK c. Ireland & Germany d. Canada e. Australia can affect his earning potential difference and what will be the difference? If he takes an education Loan of “INR Y” (say INR 20Lakhs) and the interest rate is 12% +- 1%. Then in normal conditions of him getting a target employment abroad, by when can he pay the loan amount and reach breakeven while living a normal lifestyle abroad? The factors to take in to consideration-

 Salary Statistics of the Target College, country & field. (eg- payscale, Glassdoor, LinkedIn, etc.)

 Loan & interest calculations. (SBI, INCRED, BOB, AXIS, CREDILLA, PRODIGY Finance, etc.)

 Living Expenses calculations & taxes considerations (of target city, zone, and country).

TASK- Now, calculate and design a frame work for the developers to make a tool which calculate the earning potential difference and loan payback period for every courses from USA, UK, Canada, Ireland, Australia & Germany. This will also give confidence to banks for providing education loan. The product needs to work for Indian students and also holds infrastructure for global expansion. The blueprint and the calculation should be prepared and an A/B test strategy needs to be designed. The roadmap for scale up needs to be prepared.

Asked at Google over a year ago

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Solutioning

I will use below formula to calculate the Loan period of a student.

Loan Period = NPER ( Interest Rate, Monthly Loan Repayment, Pending Loan Amount )

Here Monthly Loan Repayment, Pending Loan amount depends on various variables like in which country student is studying, which course he is studying, his excellence in the exams, job opportunities in the course domain etc.

Loan payback period = Depend upon ( Monthly Loan repayment AND Monthly Loan Interest AND Total Loan Amount Pending )

Monthly Loan Repayment = Depend upon ( Potential Earnings AND % of contribution toward loan )

Potential Earnings = Depend upon ( Cost of living AND Compensation of the candidate )

Cost of living = Depend upon ( Cost of food AND Cost of Shelter AND Cost of expenses in which candidate is )

Compensation of the candidate = Depend upon ( Job opportunities in the country AND Excellence obtained by the candidate in the domain )

Job Opportunities in the country = Depend upon ( Number of jobs in the domain AND Total candidates in that course domain )

Deciding the uncertainty levels

1. Level 0 - Will vary very less in the future ( Rate of interest, % of earning )

2. Level 1 - Will vary little in the future ( Cost of food, Cost of shelter )

3. Level 2 - Could move from one value to another value ( Total candidates applying for a job in the field )

4. Level 3 - Could vary in a spectrum in the future ( Number of jobs in the field, Candidates performance in the field )

Now while calculating the loan payback period - We need to consider these uncertainties.

Student	Amit Aggarwal
Education Country	US
Course	CSE
Coming to India after 2 years	YES
Loan Amount Taken	60 Lacs



First two years	Uncertainty	Best Case Scenario	Average Case Scenario	Worst Case Scenario
Cost of the food in the country	Level 1	300$
Cost of the shelter in the country	Level 1	1500$
Cost of the expenses in the country	Level 1	1000$
Total Cost of Living		2800$/month
# of jobs in the course field	Level 3	1M
Total applicants in that domain	Level 2	500K
Excellence of the candidate	Level 3	High
Compensation		8K/month
% contribution toward EMI	Level 0	20%
Payment toward EMI		1600$
Monthly Interest Rate	Level 0	12%

Loan Payback Period in Months		69.66071689
Loan paid in two years		38400$

Loan Payback after 2 years ( Came back to India )		41600$

After 2 years
Cost of the food in the country ( India )	Level 1	5000INR
Cost of the shelter in the country	Level 1	20000INR
Cost of the expenses in the country	Level 1	20000INR
Total Cost of Living		45000/month
# of jobs in the course field	Level 3	1M
Total applicants in that domain	Level 2	500K
Exellence of the candidate	Level 3	High
Compensation		100000/month
% contribution toward EMI	Level 0	50%
Payment toward EMI		50000INR
Monthly Interest Rate	Level 0	12%

Loan payback Period in Months		92.08645877

Total Loan Payment period		162 Months

Perform similar calculations considering the uncertainties in which candidate has not perform well then
instead of earning 100K$ per year, he might be just 60k$/month. based on which Monthly payment will change and hence loan payback period

could change drastically ..

To reduce the complexity - I have consider all courses are highly valuable so generate more or less same job opportunities.

Otherwise they will generate different number of jobs oppotunities etc .