The Great Indian Credentialing Scam: How Colleges, Banks, and Companies Betray the Middle Class

India’s middle class has been promised that studying hard, earning a degree, and landing a good job will lead to a secure future. But for many, this hope has turned into a bitter disappointment. Private colleges, banks, and companies are working together in ways that hurt students and their families. This “credential scam” takes money, gives out useless degrees, and blocks people from the opportunities they were promised.

The College Trap: High Fees, Empty Promises

Many private colleges—including top schools like IITs and IIMs—charge very high fees, sometimes lakhs of rupees per year, while doing little to prepare students for real jobs. Financial advisors and industry experts have highlighted that most private colleges deliver poor job placement rates. For example, placements dropped from about 60-80% in 2021-2022 to just 20-40% in 2023-2024, even as tuition kept rising. Ads promise “guaranteed jobs” with high salaries, but those offers rarely exist in reality.

Graduates often leave with degrees that aren’t valued by employers. Many programs teach outdated material. Some colleges even sell fake degrees. One college in Himachal Pradesh sold thousands of fake diplomas all over the world, leaving students with paper that meant nothing.

The Debt Trap: Banks Make It Worse

Banks make it easy for students to take out loans to pay these huge fees. Many middle-class families feel they have no choice but to borrow money for education, but these loans come with high interest rates and strict repayment demands. If students can’t find a decent job after graduating, they—and their families—are stuck in debt. Colleges and banks often work together to approve education loans quickly, ensuring the college gets paid, the bank earns interest, and students are left with the risk.

The Job Market Mirage: Companies' Role

Companies also play a part. There are more graduates than good jobs. This lets companies offer low salaries or ask for unpaid internships. Some jobs even require degrees for roles that don’t really need them. This pushes students to chase more and more expensive qualifications, hoping it will help.

On top of that, job scams are common. Criminals post fake job openings online, promising high pay and remote work at well-known firms. Many ask for upfront “fees” or steal applicants’ personal information. Studies show that about 20% of job postings in India may be fake or misleading. Even real companies often give preference to graduates from elite or foreign institutions, leaving everyone else behind.

A Broken System: Who Can You Trust?

The system is supposed to be regulated, but enforcement is weak. Authorities frequently catch fake colleges and degree mills, but scams continue. Even national-level entrance exams have faced paper leaks and corruption. Sometimes, people even use fake certificates to get top government jobs. All this shows a wider problem: the system rewards paperwork and connections, not real skills and honesty.

How Do We Fix This?

To break the cycle, India needs urgent reform:

• The government must close down fake colleges, regularly check institutions, and make it easy to verify degrees online.

• Colleges must give honest placement data—real salary figures and actual employers, not inflated marketing.

• College courses should match what employers really need, focusing on practical skills instead of just theory.

• Banks should make loan repayment depend on the graduate’s income and offer lower interest rates.

• Companies should hire based on what people can do, not just their degree, and help check job listings for scams.

• Students and families need to learn how to spot warning signs—like jobs that ask for money upfront or promise too much.

Let’s Build a Fair Path

India’s middle class is losing out to a system that values profit over people. Broken promises, crushing debt, and fake credentials have become too common. The system needs honest rules, better training for jobs, and real protections for students. Only then can education unlock the future it promises—instead of shutting people out.