Recently an engineering college student in the city posted on social media about how the college was charging 2.1% of the cost to company (CTC) secured by students as a placement fee. The post got widely shared, and many others too shared similar accounts.
Many students who spoke to The Hindu said colleges told them about the fee only when the placement drive began. It ranges between ₹3,000 and ₹7,000, depending on the number of offers, or in some colleges, between 2% and 5% of their first month’s salary. If students don’t pay, colleges often withhold their marks cards and other certificates.
Common practice
“They (college management) told us that we have to bear the cost of getting the companies to visit and for making arrangements for food, computers, etc. I paid around ₹4,500,” said a student who recently finished her M.Tech course at B.M.S. College of Engineering in Basavanagudi.
A few others who finished their B.E. course at the same institution also confirmed that they had to pay a placement fee. A staff member of B.M.S. College of Engineering said the fee was being collected from students every year. “As trainers have to be brought in from outside, they should be paid an honorarium and provided a few other things. That is why this fee is charged.”
A student from an engineering college in Rajarajeshwarinagar said the placement fee there was 5% of the CTC. Students who bag multiple offers have to pay per offer.
Colleges’ stand
Colleges defended the fee, saying the practice has been around for many years as students have to be trained according to industry requirements.
“A few years ago, companies used to have training programmes for up to three months. But now, they need them to work from day one. Hence, we must prepare them with skill sets from the first year itself, and that needs a lot of human resources,” said Ashwath, principal, Bangalore Institute of Technology. He also said the fee per offer is charged to ensure that the same student does not receive multiple offers and that the opportunities are divided equally.
Parents unhappy
Meanwhile, parents expressed their displeasure. “When they advertise that they provide 100% placements, we naturally assume they will train our children with the fees we pay every year. Why do we have to pay something additional to bring students up to industry standards? Is not that the whole point of studying for four years?” questioned Aarathi G., a parent of two engineering students.
Withholding of certificates
An official from Visvesvaraya Technological University said collecting placement fees is not against the rules, but withholding of certificates and marks cards is illegal.
“As placement is something which is not included in the curriculum, an external fee is collected to train students. However, we have sent a circular to all the affiliated colleges saying that they should not withhold any certificates under any circumstances,” they said.
