Even though there has been an improvement in the rupee against the dollar in the last two trading days, we should not forget that in this week the rupee had also set a new record of decline and had crossed the level of 91. After that RBI started selling dollars through banks and brought some relief to the rupee. Even after that, the rupee is still trading with a decline of more than 5 percent against the dollar in the current year. According to Bloomberg report, experts believe that unless a new trade agreement is reached between the US and India, the rupee will remain weak. While a strong dollar helps sectors like IT and pharma, it is a big problem for Indian students planning to study abroad.
How expensive can education be?
The falling rupee is likely to hit the wallet of students starting their studies in January 2026 (spring session). A decline of about 6 in 2025 means that tuition fees for a course costing $55,000 alone will cost an additional Rs 3.3 lakh. If the cost of living of $15,000 per year is also added to this, then an additional 6 percent decline would cost Indian students Rs 81,000 in extra expenses. Overall, due to changes in currency exchange rates, the cost of studying in the US may increase by Rs 4.11 lakh per year in 2026 (when fees are $55,000). The exact amount of additional expenses will vary depending on the university and city.
Decline in the number of students going to America
According to a report by The New York Times citing data from Trade.gov, the number of Indian students going to America for higher education has declined by 44 percent in August 2025 compared to August 2024. This is the biggest decline seen after the pandemic. There could be several reasons for this decline in numbers, including changes in visa rules and overall anti-immigration sentiment. Experts believe that the falling value of the rupee, though disappointing for students going to the US, does not change anything fundamentally.
expenses increase
Aritra Ghoshal, founder of OneStep Global, said in a Mint report that families are now “stress testing” their budgets. Ghoshal said that we are seeing more interest in ‘lock-in’ options for loans and tuition fees in US dollars. These help families manage their expenses despite currency fluctuations. He said that the fall in rupee increases the cost of studying abroad. Especially in terms of living expenses, foreign currency risk and loan repayment, but this has not had any significant impact on students’ desire to study abroad. He said that due to this, financial discipline is becoming more strict. For example, some families are already planning, analyzing their budget in view of currency volatility. Also, they are more alert to the pressure of repaying the loan under the current exchange rates.
Looking for other options
Many students are now giving preference to degrees that lead to direct employment. They are also looking for destinations with clear work rules after graduation. Some people believe that these rising costs will encourage students to stay in India. PG Babu, Vice Chancellor of Bengaluru-based Vidyashilp University, said in the Mint report that the families are introspecting. Students are now beginning to ask more meaningful questions about why they want to study abroad and what they really hope to gain from the experience. At the same time, Indian universities have significantly strengthened their academic depth, research culture and global connections.