Special classes for students applying to universities overseas have also become common at schools nationwide.

Zhou Haoyu is part of such a class at Shanghai Yan'an High School. He said he has 21 classmates, which means one in every 18 final-year students is looking to go abroad.

Education industry insiders say foreign colleges have become increasingly eager to profit from this trend among Chinese students, especially since the start of the financial crisis.

"At international education fairs, which attract colleges from across the globe, any lecture or symposium about how to enroll Chinese students is guaranteed to get a full house," said Chen Danli, marketing manager at Aoji Enrollment Center of International Education, a consultancy service in Beijing.

Zhou Xiaozheng, a sociology professor at Renmin University of China, said everybody knows Chinese parents are willing to spend money on their children, but he warned that those looking to benefit today are largely "second- and third-rate colleges that don't offer scholarships or subsidies".

As with any investment, foregoing due diligence dramatically increases the risk of making a loss. That is why Yunnan principal Zhang Jianbai says it is essential for families to take a pragmatic approach, so as to prevent them from wasting money and ending up in debt.

Parents need to be reasonable, he said, as well as "clear about what they expect from the study period mental development or practical skills".

Personalities must also be taken into account, experts say, as not every youngster will be suited to the challenges of overseas study, which involves extra stresses such as coming to terms with language, lifestyle and culture differences, and requires a lot of self-discipline.

Only by looking closely at the road ahead can parents avoid the pitfalls, Lao at Capital Normal University said.

"Using money that had been intended to improve the living conditions of people in later years to make blind investments in education will ultimately be wasted," he warned.