Studying abroad has become expensive due to more than 10% depreciation of the rupee. Due to increase in tuition fees and living expenses, families are taking additional loans. Students are now looking at affordable options like Germany and France.
New Delhi: The falling value of the rupee is a big blow to Indian students and their families dreaming of studying abroad. In the last one year alone, the value of the rupee has declined by more than 10% against the US dollar. This has had a direct impact on the total cost of studying abroad, which has increased significantly. Because of this, many families are having to restructure their budgets, arrange for more money, and in some cases, even change their country of study.
A fall of more than 10% in the rupee means that the total cost of education will increase significantly. This is because most of the major expenses related to studying abroad have to be paid in foreign currency. For example, courses whose annual expenditure ranges between Rs 35 lakh to Rs 70 lakh may now face an additional burden of Rs 4 lakh to Rs 8 lakh every year just because of changes in currency prices.
This is not just a dollar story. The rupee has weakened against the currencies of all the places including Britain, Canada, Australia and European countries where a large number of Indian students go to study. So, no matter which country students go to, expenses are sure to increase.
The biggest hit is on tuition fees and living expenses.
The largest portion of students’ budget goes to tuition fees and living expenses, so these two things are being hit the hardest by inflation. In big cities like New York, Toronto, Vancouver, Sydney and Melbourne, the cost of living is already very high due to inflation and housing shortage. House rent, groceries, commuting expenses, electricity bills and other daily expenses are affected by changes in the exchange rate every month. Apart from this, premiums for plane tickets and health insurance have also increased.
Loans are decreasing, families are resorting to top-up
The entire financial budget made at the time of starting the course is now in disarray. Its biggest impact is on those students who are dependent on education loans. Banks approve the amount according to the exchange rate at the time of applying for the loan. But when the value of rupee falls further after the loan is approved, it becomes difficult to cover the entire tuition fees and living expenses from the amount received. Those who had taken loan at the rate of one or two years ago, are now losing money. In such a situation, families are forced to take top-up loans, look for more loans or withdraw money from their savings. To avoid such problems in future, many people have started taking loan of higher amount in the beginning itself.
Students are looking for new paths
The fall in the value of rupee has not reduced the craze for studying abroad, but students are now considering changing the country. Families are now looking for such options where good education can be provided at low cost.
Germany and France: Many public universities in Germany have no tuition fees, and in France scholarships are available with low costs. These things are attracting the students towards themselves.
Ireland and New Zealand: Interest in these countries is also increasing because there are good job opportunities after studies here.