Zoho Founder Warns Against Risky Education Loans Amid Job Instability

As of August 4th, 2025, Zoho founder Sridhar Vembu is cautioning students and families against taking on huge education loans, especially for pursuing degrees abroad. Vembu, a Padma Shri recipient, has highlighted the financial risks young people face when they borrow large sums to fund their education, particularly in an unstable job market.

Vembu has shared the case of a student who borrowed around Rs 70 lakh (approximately $80,000) at a 12% annual interest rate to attend a lesser-known university in the U.S. With limited job prospects, especially for international students in the IT field, this individual now faces imminent repayment deadlines without clear employment options.

The Zoho chief emphasized that the current downturn in IT job availability is especially tough for foreign students. As Zoho itself is adapting to changes brought on by artificial intelligence, the company has reduced its hiring activity. Vembu stressed that their firm avoids layoffs, making them more selective with new recruits. In this environment, students burdened with enormous debts may find themselves trapped, with no immediate job or relief in sight.

Vembu urged students and parents to exercise financial prudence, as accumulating large loans for education – whether in India or abroad – is not a wise decision. Instead of chasing traditional degrees through heavy borrowing, he believes the industry needs to rethink how it views qualifications. Vembu encouraged companies to sponsor practical training programs and shift toward accepting non-traditional credentials rather than insisting on formal degrees.