Falling rupee shatters Indian students’ dreams of studying abroad

0

While financial institutions believe the concerns are real and the requirement for higher student loan amounts will increase, study abroad consultants believe students have less to worry about, especially those who plan to work in the United States after graduation.

“As the rupee falls to a new all-time high against the US dollar, it spills over into the concerns of study abroad applicants. The weakening of the Indian currency against the US dollar will have a profound impact on the students’ education plans abroad and will increase the financial burden,” Pushpender Kumar, who plans to study law in the United States, told PTI.

“For my other friends, a change of choice of country can work, but for me, it cannot consider long-term plans. Each country has a different legal system and it takes different knowledge to practice as a lawyer “I have no choice. However, I think the final cost will increase further until I land there and finally graduate,” he added.

The rupee hit a new all-time low this week, touching the 80 mark against the US currency.

According to official statistics, more than 13.24 lakh Indian students went abroad for higher education, with the maximum heading to the United States (4.65 lakh), followed by Canada ( 1.83 lakh), United Arab Emirates (1.64 lakh) and Australia (1.09 lakh), among others.

Arijit Sanyal, MD and CEO, HDFC Credila believes that a depreciated rupee would indicate an increase in the cost of education for an Indian student aspiring to study abroad.

“From an education lender’s perspective, this would result in larger tickets, as a borrower would need to have a larger amount available to cover overall expenses, including tuition and incidentals. However, a borrower who is in the loan repayment stage during this time might find it easier to raise funds, if they earn in dollars,” Sanyal said.

Tuition fees and living expenses are the two main components of student expenses when studying abroad. The rupee in the face of a losing streak translates into higher fees and cost of living, as a dollar would cost more in rupee than before.

According to Prashant A Bhonsle, founder of Kuhoo Fintech, an online student loan platform, costs are much higher for students planning to study in the US as they now have to pay tuition and living expenses. in dollars as the Euro and GBP appreciated against the Rupee and hence reduced the cost of education for Indian students in the UK and Europe.

“This is good news for Indian students who passed out and started working and earning money and sending the money back to India to pay their loans or expenses in India,” he said. he declares.

The comparison of historical data can grasp the significant increase in the charge propelled by the decline in the value of the rupee. An Indian student, who paid fees at an exchange rate of around 65 rupees per dollar in 2017, could end up paying 77-80 rupees per dollar today.

Avinash Kumar, founder of Credenc.com, said the cost of everything from tuition to living expenses to travel tickets rises every time the rupee drops certain points.

According to the most recent fall, the rupee touched 79.83 against the US dollar, so for a student whose one semester fee was $40,000 paid earlier 29.52 lakh in Jan 2022 when 1 USD = 73.8 INR, today must pay 31.92 lakh. With living expenses of around USD 9,000 per semester (INR 7,18,000) and travel expenses (INR 90,000 to INR 1,00,000), you are looking at a huge expense of 41 lakh for a semester, he explained.

Study abroad consultants believe that studying abroad is a well-considered decision and one that is unlikely to change quickly.

“Most of the students who take loans do so on the basis of fees. So if the fees increase in terms of rupees, the lenders take this into account and increase the sanctioned amount. In fact, students who had taken a loan there 2 or 3 year olds can repay easily with their dollar earnings,” Sumeet Jain, co-founder of Yocket, a platform for study abroad applicants.

Similarly, Saurabh Arora, Founder and CEO of University Living, a managed global marketplace for student accommodation, said

students always choose to go abroad it’s just that they choose to go to new destinations where tuition fees, standard of living and cost of living are a bit cheaper like France, l Germany, Portugal, Italy, Spain.

Vibha Kagzy, Founder and CEO of ReachIvy.com, believes that even after the pandemic, student aspirations to study abroad have become bolder than ever and this is unlikely to be dampened by exchange rates.

“Changes in the global economy are the norm. The United States has been a study abroad choice because of the ease of communication in English and the abundance of opportunities. European countries have also caught up and are on par. You could say that their tuition fees are more attractive as are their financial support options,” she said.

Catch all the trade news, market news, breaking events and the latest updates on Live Mint. Download the Mint News app to get daily market updates.

More less

To subscribe to Mint Bulletins

* Enter a valid email

* Thank you for subscribing to our newsletter.

Share.

About Author

Comments are closed.