Students turn brokers for admissions in Bengaluru
l Students are able to manage their extra expenses through brokering without the risk of getting caught; they earn anywhere between `20,000 and `2 lakh per month l Staffer of a college says it
Published: 30th April 2018 02:08 AM | Last Updated: 30th April 2018 07:05 AM | A+A A-
By Preeja Prasad
Express News Service
BENGALURU : Skilled workers were always known to be the breadwinners of the society. But to see students earning money, over and above a fresher from any industry does leaves the professionals dumbfounded. Students in the age group of 18-25 have found an easy way to make money and look after their expenses — as brokers for college admissions.While the starting salary for a professional itself is less than Rs 20,000 per month, student brokers are known to receive money during the admission period to earn in the range of Rs 20,000 to Rs 2 lakh, depending on the type of seat the candidates require. For example, medical seats receive a good amount as donation in the form of packages.
“These packages go up to Rs 2 crore, inclusive of fees, hostel, and donation,” says Raj Arora (named changed), a second year engineering student from a reputed college in Bengaluru who started brokering last year. “I had a friend in my first year who was into this and he got me in touch with a consultancy which deals with admissions. The job is to find clients for these consultancies or even for colleges which are in need of getting their seats filled, and we receive a commission based on that,” he adds.
THE PROCESS
So how does the process work? A mutual agreement is made between the consultancy and the student, wherein if the client is brought in by the student, a fixed commission is received. The consultancy then works with a staff of the admissions department and fixes a price for donation inclusive of the student’s commission. This way, the staff is unaware of the identity and involvement of a student in the process.
According to Raj, student brokers are now very common especially in the last three years due to high demand by the clients. Moreover, based on the consultancy that he works for, after Coimbatore and Chennai, Bengaluru is the third city which receives a high number of clients for admission in the management quota.
At present, he is servicing 3-5 clients for this year’s admission and calls this an average number which brokers receive every year. “I stay a bit far from the college and commuting was a struggle at first. I recently bought a second-hand scooter without depending on my family, and can travel easily,” he says.
ON THE SLY
Since the commission is received in cash, student brokers have also found it easy to conceal it from their parents without getting into trouble. Rahul Sharma (name changed), another second-year student from the same university started brokering eight months ago. “I used to visit my girlfriend in Chennai every month and was caught by my parents eventually as I had swiped their debit card in a completely different state. But now I don’t have to worry about it as I can meet my expenses there as well as meet her now without my parents finding out,” he says.
THERE ARE RISKS TOO
Just as any in profession, student brokers also face risks in the market. An incident occurred last year wherein the donation was Rs 7 lakh for an MBA seat in one of the Universities. The client had made an advance payment of Rs 2 lakh and requested for the remaining payment to be done after the admission process was completed. However, the client’s son was given admission elsewhere to which they withdrew their application here, losing Rs 2 lakh instantly. “Because they were my clients, I was asked to pay the remaining amount to the college and as students, we do not have that kind of money. So I had to resolve the issue with the client and get them to pay,” Rahul explains the only con of being a student broker.
Not only that, clients choose their brokers based on the rates that they are being offered. Hence, students brokers tend to cut a deal within themselves as to how to fix a rate with the clients.Some student brokers have also taken it up as a career and started their own consultancy for a living after their graduation. Ramesh Sinha (name changed), a 26-year-old, started brokering during his college years and currently owns a consultancy back in his native place. He deals with clients from all over the country and 30-40 clients during the admission period. “I have four people working under me at the consultancy and the business is going well so far as each year there is an increase in the number of clients,” he explains about his business which was started in late 2014.
Prince Kumar, the head of the Engineering Admissions Department of a reputed university, says student brokers are a common practice in Bengaluru and that they usually deal with colleges which receive a high donation. “The reason for candidates approaching brokers is that colleges are not approachable. So to make it easier for their child to get admission, they prefer these agencies or students,” he points out. When asked about such practices within the campus, he said, “We are unaware of such incidents and it is highly unlikely as we do not accept any donation.” However, should a student get caught, “their parents will be informed and action will be taken accordingly,” he adds.
l Students are able to manage their extra expenses through brokering without the risk of getting caught; they earn anywhere between `20,000 and `2 lakh per month l Staffer of a college says it
Published: 30th April 2018 02:08 AM | Last Updated: 30th April 2018 07:05 AM | A+A A-
By Preeja Prasad
Express News Service
BENGALURU : Skilled workers were always known to be the breadwinners of the society. But to see students earning money, over and above a fresher from any industry does leaves the professionals dumbfounded. Students in the age group of 18-25 have found an easy way to make money and look after their expenses — as brokers for college admissions.While the starting salary for a professional itself is less than Rs 20,000 per month, student brokers are known to receive money during the admission period to earn in the range of Rs 20,000 to Rs 2 lakh, depending on the type of seat the candidates require. For example, medical seats receive a good amount as donation in the form of packages.
“These packages go up to Rs 2 crore, inclusive of fees, hostel, and donation,” says Raj Arora (named changed), a second year engineering student from a reputed college in Bengaluru who started brokering last year. “I had a friend in my first year who was into this and he got me in touch with a consultancy which deals with admissions. The job is to find clients for these consultancies or even for colleges which are in need of getting their seats filled, and we receive a commission based on that,” he adds.
THE PROCESS
So how does the process work? A mutual agreement is made between the consultancy and the student, wherein if the client is brought in by the student, a fixed commission is received. The consultancy then works with a staff of the admissions department and fixes a price for donation inclusive of the student’s commission. This way, the staff is unaware of the identity and involvement of a student in the process.
According to Raj, student brokers are now very common especially in the last three years due to high demand by the clients. Moreover, based on the consultancy that he works for, after Coimbatore and Chennai, Bengaluru is the third city which receives a high number of clients for admission in the management quota.
At present, he is servicing 3-5 clients for this year’s admission and calls this an average number which brokers receive every year. “I stay a bit far from the college and commuting was a struggle at first. I recently bought a second-hand scooter without depending on my family, and can travel easily,” he says.
ON THE SLY
Since the commission is received in cash, student brokers have also found it easy to conceal it from their parents without getting into trouble. Rahul Sharma (name changed), another second-year student from the same university started brokering eight months ago. “I used to visit my girlfriend in Chennai every month and was caught by my parents eventually as I had swiped their debit card in a completely different state. But now I don’t have to worry about it as I can meet my expenses there as well as meet her now without my parents finding out,” he says.
THERE ARE RISKS TOO
Just as any in profession, student brokers also face risks in the market. An incident occurred last year wherein the donation was Rs 7 lakh for an MBA seat in one of the Universities. The client had made an advance payment of Rs 2 lakh and requested for the remaining payment to be done after the admission process was completed. However, the client’s son was given admission elsewhere to which they withdrew their application here, losing Rs 2 lakh instantly. “Because they were my clients, I was asked to pay the remaining amount to the college and as students, we do not have that kind of money. So I had to resolve the issue with the client and get them to pay,” Rahul explains the only con of being a student broker.
Not only that, clients choose their brokers based on the rates that they are being offered. Hence, students brokers tend to cut a deal within themselves as to how to fix a rate with the clients.Some student brokers have also taken it up as a career and started their own consultancy for a living after their graduation. Ramesh Sinha (name changed), a 26-year-old, started brokering during his college years and currently owns a consultancy back in his native place. He deals with clients from all over the country and 30-40 clients during the admission period. “I have four people working under me at the consultancy and the business is going well so far as each year there is an increase in the number of clients,” he explains about his business which was started in late 2014.
Prince Kumar, the head of the Engineering Admissions Department of a reputed university, says student brokers are a common practice in Bengaluru and that they usually deal with colleges which receive a high donation. “The reason for candidates approaching brokers is that colleges are not approachable. So to make it easier for their child to get admission, they prefer these agencies or students,” he points out. When asked about such practices within the campus, he said, “We are unaware of such incidents and it is highly unlikely as we do not accept any donation.” However, should a student get caught, “their parents will be informed and action will be taken accordingly,” he adds.
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