India’s premier institutions, such as IITs, NITs, IIITs, and government MBBS colleges, are known for admitting the brightest minds through rigorous entrance examinations. Many students experience a noticeable decline in their academic performance, cognitive abilities, and overall intellectual engagement after gaining admission. This study explores the factors contributing to this decline, including extreme academic pressure, lack of holistic learning, digital distractions (such as online gaming and betting), substance abuse (alcohol and smoking), and mental burnout. The competitive environment, peer influence, and inadequate mental health support further exacerbate the issue, pushing students towards unproductive and self-destructive behaviors. Using surveys, case studies, and expert opinions, this paper examines how institutional culture, student lifestyle changes, and stress contribute to the deterioration of intellectual potential. Finally, the study suggests policy interventions and strategies to foster a more balanced, engaging, and mentally supportive academic atmosphere in India’s elite institutions.