Rising Costs of Studying Abroad Impact Indian Families

The depreciation of the rupee has led to a significant increase in the costs associated with studying abroad for Indian families. With rising tuition fees and foreign exchange charges, many students are finding their expenses exceed initial estimates. Experts indicate that the cost of popular courses has surged by ₹3.5 to ₹4 lakh over the past year. Additionally, the weakening rupee has made foreign travel more expensive, prompting students to reconsider their plans. As families adjust their budgets, many are exploring loans and scholarships or delaying their education plans. This shift in strategy reflects a growing concern over the financial implications of overseas education.

By Narendra Chaudhary Apr 2, 2026, 08:49 IST

Impact of Currency Depreciation on Education Costs

New Delhi: The depreciation of the rupee has significantly increased the financial burden on middle-class Indian families wishing to send their children abroad for education. Many students have already taken loans, and with rising tuition fees, foreign exchange charges, and the falling rupee, their total expenses could exceed initial estimates.

How Much Have Costs Increased?
Arnav Kumar, co-founder of the study abroad platform Leap, informed a media outlet that the total expenses for popular courses have surged by approximately ₹3.5 to ₹4 lakh over the past year. This has disrupted family budgets and increased financial strain.

How Expensive is Education?
According to statistics, the rupee has depreciated by 4.9% against the dollar, 2.5% against the euro, and 3.3% against the pound this year. In the fiscal year 2024-25, the rupee has weakened by about 5% to 6% against the dollar. When factoring in the rising fees of foreign colleges, the cost of education in rupee terms is increasing by 7% to 11% annually.

Challenges with Loans?
Experts indicate that education loans from Indian banks are determined based on the current currency rate. While there is an option to take loans from foreign banks, most individuals prefer to borrow from India due to the requirement of a local guarantor or collateral when borrowing abroad.

What is the Strategy?
Piyush Kumar, Regional Director at IDP Education, mentions that Indian students are now adjusting their strategies. They are either postponing their plans by one or two years or exploring options like loans and scholarships.

What is the Impact?
Pankaj Kapoor, a professor at NMIMS School of Commerce, noted that depending on the country and course selected, students may now have to pay an additional ₹5 to ₹10 lakh annually compared to 2023.

Effect on Foreign Travel?
Experts suggest that due to the rupee's depreciation, last-minute trip plans may become 10-15% more expensive. Those who have already made bookings are now having to manage additional expenses incurred during their travels. Consequently, many are either shortening their trips or opting for nearby destinations.

What Changes Have Occurred?
Consultant Meenal Damani observed a decline in the number of students traveling abroad compared to last year. Many students are now favoring Europe over the USA. Akshay Chaturvedi, CEO of Leverage Edu, stated that for students, the reputation of a university is now less important than the potential return on investment for the money they are spending.