Every student in today’s competitive world wants to study in such an institution which is well equipped with high technology and well established laboratories. The institutions have to spend a lot of money in setting up computerized experimental laboratories. The amount of money involved in setting up the infrastructure and services inflates the educational costs. Hence, higher education in India is becoming expensive day by day. The technology of virtualization, if adopted, will change the scenario. It will reduce the expenditure upto a large level. This paper proposes cost effective solutions for education and learning using Cloud Computing..