American college dream seems further away for aspirants as rupee hits record low
New Delhi:
With the rupee hitting an all-time low every day, aspirants to study abroad in India fear their American college dreams are getting further and further away as they will have to earn more money or change their choice of country. where it’s relatively cheaper.
While financial institutions feel this concern is legitimate and higher education loan requirements will increase, study abroad consultants say students have less to worry about, especially who plan to work in the US after completing their studies.
“As the rupee falls to a new record low against the US dollar, it raises widespread concerns among study abroad aspirants. The weakening of the Indian currency against the US dollar will have an impact. have a profound impact on students’ plans to study abroad and add to their financial burden,” Pushpender Kumar, who plans to study law in the United States, told PTI.
“For other friends of mine, changing country selection can work, but for me, it can’t be a long-term plan. Each country has a different legal system, which requires knowledge. different knowledge to practice law. I don’t have the option. However, I feel the costs will eventually go up even higher until I land there and eventually graduate,” he said. more.
This week, the rupee hit an all-time low, hitting the 80 mark against the US currency.
According to official statistics, more than 13.24 thousand students from India have gone abroad for further study, of which the maximum is to the US (4.65 thousand), followed by Canada (1.83 thousand), UAE (1,64 lakh) and Australia (1.09 lakh), among others.
Arijit Sanyal, MD and CEO, HDFC Credila, believe that a falling rupee will indicate an increase in the cost of education for an Indian student who wants to study abroad.
“From an education lender’s perspective, this will result in larger ticket sizes. Borrowers will need more to cover overall costs, including tuition and ancillary costs. However, borrowers at the loan repayment stage during this time may find it easier to raise money if they earn it in dollars,” said Mr. Sanyal.
Tuition fees and living expenses are the two main components of a student’s cost of studying abroad. The rupee faces a string of declines that lead to increased fees and costs of living as a dollar will cost more in rupees than it did before.
According to Prashant A Bhonsle, founder of Kuhoo Fintech, an online student loan platform, the cost for students planning to study in the US is much higher because they now have to pay tuition and living expenses in dollars. In contrast, the euro and GBP have appreciated against the rupee and as a result have reduced the cost of education for Indian students in the UK and Europe.
“It is good news for Indian students who have gone through labor and started working, earning dollars and sending money back to India to pay their loans or expenses in India.
Comparisons of historical data can capture a significant increase in the burden due to the falling value of the rupee.
An Indian student, who paid a fee with an exchange rate of around 65 rupees/dollar in 2017, can now expect to pay 77-80 rupees/dollar.
Avinash Kumar, Founder of Credenc.com, says the cost of everything from tuition and living expenses to travel tickets, increases every time the rupee depreciates.
As of the most recent fall, the rupee touched 79.99 against the US dollar, so a student with a semester tuition of $40,000 previously paid Rs 29.52 in January 2022 when 1 USD = 73.8 INR payable today Rs 31.92. With living costs around $9000 per semester (INR 7,18,000) and travel expenses (90,000 INR to 1,00,000 INR), you are looking at a whopping Rs 41 lakh spend for a semester, Mr. he explained.
Study abroad consultants say that studying abroad is a well-thought-out decision and is unlikely to change quickly.
“Most students who are taking out a loan are charged a fee. So if the fee increases in terms of rupee terms, the lending institutions will consider it and increase the sanctioned amount. The student has borrowed from 2 -3 years can pay back easily. their earnings are in dollars”, said Sumeet Jain, Co-Founder, Yocket, a platform for those who aspire to study abroad.
Similarly, Saurabh Arora, Founder and CEO of University Living, the global student accommodation management market, says students are still choosing to go abroad. It’s just that they are choosing to go to new destinations with slightly cheaper tuition, living standards and costs like France, Germany, Portugal, Italy, Spain.
Vibha Kagzy, Founder and CEO of ReachIvy.com, believes that even after the pandemic, students’ aspirations to study abroad are stronger than ever and it’s unlikely that exchange rates will do reduce this.
“Changes in the global economy are the norm. America has been a study abroad choice due to ease of communication in English and many opportunities. European countries have also caught up and are on par. It is possible for that their tuition fees are more attractive, as are their financial aid options,” she said.
