With the Indian rupee continuing its decline against the US dollar, students from India planning to study abroad are facing increasing financial hurdles. Recently, the rupee crossed the 87-mark against the dollar, making it more expensive for students heading overseas for higher education.
Adding to their concerns, US President Donald Trump’s anti-immigration policies have unsettled many students who aspire to settle in the United States after completing their studies. Given that a large number of Indian students invest substantial amounts in their education in the US with long-term settlement in mind, these policy changes are causing anxiety among them.
Over the past month, the Reserve Bank of India (RBI) has intervened in the foreign exchange market to curb the rupee’s decline. While these efforts have helped strengthen the rupee by about one per cent against the dollar, the currency still remains nearly five per cent weaker than its value a year ago.
As a result, students heading to the US or other Western nations this year will need to pay significantly more in Indian rupees to cover tuition and living expenses.
A decline of 5 per cent in one year
According to Investing.com data, the US dollar was valued at approximately ₹82.87 against the Indian rupee a year ago. As of February 25, the dollar is trading at ₹87.089 per unit, marking a depreciation of over five per cent in just one year.
Studying in the US comes with a hefty price tag, typically ranging between $60,000 and $100,000 annually. In addition, students must account for living expenses, which can amount to another $20,000 per year.
This means that the overall annual cost of studying in the US is around $80,000. With the current exchange rate, this translates to ₹69.67 lakh instead of ₹66 lakh, an increase of ₹3.67 lakh per year. For a two-year program, this additional expense doubles to ₹7.34 lakh.
Larger budgets required
Financial experts are advising students and their families to prepare for higher expenses this year, not just for tuition fees but also for accommodation and other living costs. They also recommend hedging against currency fluctuations by diversifying investments.
“The depreciation of the Indian rupee significantly impacts the cost of studying abroad, making tuition fees, living expenses, and other expenditures more expensive in rupee terms. For instance, if the rupee weakens against the US dollar or other major currencies, students have to allocate a higher budget for education expenses by compromising on retirement or other goals, increasing the financial burden,” says Rozy Efzal, Co-founder of Invest4edu.
She further advises, “Parents and students must proactively hedge against currency risks by investing in such assets as mutual funds and foreign currency deposits.”
