The prospect of a foreign education and a degree from a well known world class University or College lures thousands of Indians to the countries abroad. The United States of America is a prime hub of Indian students. The world class universities there offer prospects of an enticing education, which the frail structure of Indian higher education fails to promise. The reason behind it is a question of different time. The falling value of rupee is making the dreams of a foreign education even more expensive.
Most of the students going for undergraduate or graduate programs in US universities already have to pay a huge amount. Lakhs of rupees (in excess of 20-25 lakhs) are required per year to fulfill that dream. But the rupee has fallen more than 7-8% in the last year, and it will increase the costs upto 3-5 lakhs or even more per annum. This increase in the costs of foreign education will make the banks more reluctant to offer loans. Parents generally take loans upto 30-40 lakhs for their kids education, but are mostly unable to pay back the loans as the kids gets mostly temporary jobs while studying, and the interest keeps soaring high. This increases the non performing assets of the education loan sector, and it is making the banks more and more reluctant in offering loans to students going abroad for a foreign education.
The situation will be even harder for students who are already studying abroad. Their fee will shoot up to 10-12%, and it will be really hard for them to match this rise in fees. So, the students have to pay lakhs of money extra from what they had planned earlier. The threat of higher studies in the US turning costlier due to the slide of rupee against the dollar seems to have failed to cast a shadow on the aspirations of many youngsters keen on heading for US varsities. Though the expenditure for studies in the US is expected to become costlier by five per cent, aspirants now look for universities which extend financial support through scholarships or avail more education loan.
With the rupee slipping to all-time low to 72.10 against the dollar, expenditure for the pursuing higher education in the US universities is expected to become at least five per cent more. From applications fee to tuition fee, the expenditure has gone up. The application fee for US universities ranges between $50 and $ 100. With the current exchange rate students have to spend Rs 3,500 to Rs 7,000 towards application fee for one university as against Rs 3,100 to Rs 6,345 in January, this year. The impact might not be felt by students who have already joined in the August intake but for the aspirants enrolling in January, the budget would go up.
The more grim thing is that this situation is nowhere improving in near future. So if you are planning for a foreign education, be ready to make the hole in your pockets even bigger.