A tough equation: Students rethink overseas study plans amid rupee slide

Weak rupee reshapes overseas education choices as Indian students seek affordable destinations

Deferred study plans, shrinking interest in high-cost degrees, and a growing exit from traditional study destinations — these are some of the responses emerging among Indian students as the rupee’s slide makes overseas education significantly more expensive.

 

Kritika Saha (name changed), who has secured admission to a business school in France for her postgraduate studies, said her family had converted money into euros in advance, to account for an €875 university deposit. However, the 23-year-old is now bracing for higher living costs and a larger second instalment due later this year.

 

“I’m now preparing for a scholarship test in June, which will provide me some relief, as I will not have to face further cost burden during my stay there,” she said. The scholarship would provide a monthly allowance of €860, along with benefits including visa fee exemption, health insurance and subsidised accommodation support.

 

Study abroad consultancies and career counsellors said student planning has shifted sharply as costs rise. “Compared with a year ago, the effective cost of studying abroad for Indian students has increased by roughly 10-12 per cent, due to currency depreciation and rising living costs,” said Nitina Dua, executive head of the Career Guidance Centre at Shiv Nadar School.

 

Saurabh Arora, founder and chief executive officer (CEO) of Noida-based University Living, estimated the cost burden for Indian families has risen 15-25 per cent over the past two to three years, driven by currency depreciation, higher living costs, visa fee increases and accommodation inflation. He said the pressure is most visible across traditional destinations such as the US, UK, Canada and Australia, where multiple cost components are compounding the impact of the weaker rupee.

 

Over the past year, from May 2025 to May 2026, the rupee has weakened from the mid-to-high 80s per US dollar to the mid-to-high 90s, alongside similar depreciation against the pound and euro.

 

Data from the Reserve Bank of India’s Liberalised Remittance Scheme showed outward remittances fell nearly 2 per cent year-on-year (Y-o-Y) to $28.98 billion in 2025-26, while overseas education-related remittances declined 5.2 per cent to $151.71 million, indicating softer spending on education abroad.

 

“We’ve seen a rise in the number of students who are either postponing their semester by one full term, or completely reconsidering their choices for studying abroad, particularly for the US, UK, Canada and Australia,” said Ritika Gupta, founder, CEO and global education mentor, Aaera, a study-abroad consultancy.

 

Arora said higher costs in traditional destinations have intensified pressure. “Australia’s student visa fee has increased from A$710 to A$2,000, while students in the US typically pay a $185 visa fee along with a $350 SEVIS fee before beginning their studies,” he said.

 

Students are increasingly shifting towards lower-cost destinations. Gupta said countries such as Germany, Ireland, Dubai, Singapore and parts of Europe are gaining interest due to lower tuition and living costs. Arora added that Germany, Ireland, France and New Zealand are increasingly seen as offering a better cost-to-outcome balance.

 

Platform data from AI-powered study abroad platform GradRight reflects this shift. Germany emerged as the strongest gainer among destinations, with student preference rising 73 per cent between January-May 2025 and January–May 2026. In contrast, Canada saw interest fall 33 per cent, the UK 15 per cent and the US 18 per cent.

 

“Germany saves Indian students ₹52–92 lakh in upfront costs compared to the US,” said Lovish Rawal, founding member at GradRight, adding that the US is increasingly becoming “an aspirational second choice rather than a committed Plan A”.

 

Swapna Sahu (name changed), a Delhi-based aspirant applying for a Master’s in marketing, said she has shifted focus from Canada to more affordable options in Europe, including Germany and the Netherlands.

 

“My budgeting is changing every month as the rupee continues to dip. I am having to save more now than what I had initially planned,” she said, adding that scholarships have become a necessity compared to earlier generations of students in her family.

 

The shift is also visible in course choices. Between January–May 2025 and January–May 2026, preferences for Finance fell 82 per cent, Business Administration 86 per cent, Supply Chain 88 per cent and Engineering Management 92 per cent, according to GradRight data.

 

“These are predominantly US-tied programmes, the most rupee-sensitive choices a student can make at ₹95 per dollar,” Rawal said, adding that such courses have seen a “near-collapse in interest”.

 

In contrast, Computer Science declined 22 per cent but remained relatively resilient, while Data Science surged 170 per cent. “Students are concentrating their study abroad intent into tech and AI fields where the salary payoff justifies the rupee cost. Rupee depreciation is acting as a ruthless ROI filter,” Rawal said.

 

Arora said programmes such as MBAs, engineering, data science and other Science, Technology, Engineering, and and Mathematics (STEM) courses are facing greater scrutiny as total education costs increasingly cross ₹40-60 lakh. Gupta and Dua said fields linked to artificial intelligence (AI), cybersecurity, semiconductors and quantitative finance continue to attract interest due to stronger employability outcomes.

 

Students are also changing where they live abroad. Gupta said there is growing preference for smaller cities with lower rental and daily expenses, while Arora noted students are increasingly avoiding premium metropolitan locations.

 

Higher costs are also changing financing behaviour. “The number of inquiries regarding loan options, scholarship opportunities and financial aid programmes was approximately 25-35 per cent higher than last year,” Gupta said. Arora added families are beginning loan and financial planning discussions 12-18 months earlier than before.

 

Rawal said more students are deferring plans by one to two years to rebuild savings buffers. 

Ripple effect

• Growing shift towards lower-cost European destinations
• Scholarships becoming central to study plans
• Students focusing on AI fields where the salary payoff justifies rupee cost
• Families start loan planning much earlier