The weakening of the Indian rupee against the US dollar and other foreign currencies has increased the cost of studying abroad for Indian students. Over the past year, the rupee has depreciated from ₹82 to ₹87 per dollar, driving up tuition fees, accommodation costs, and daily expenses.
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“The depreciation has made overseas education more expensive, as tuition fees, housing, and living expenses — all priced in foreign currencies — now require higher rupee outflows. This makes it essential for students to rethink their financial strategies,” said Vinay Singh, Executive Director & CEO, Thomson Digital and Q&I.
Mayuresh Kini, Principal Officer, Zinc Financial Advisors, further highlighted the impact of currency fluctuations on student budgets.
“For example, a tuition fee of $20,000, which previously cost ₹16.4 lakh, has now increased to ₹17.4 lakh. This added expense extends to essentials like rent, food, and transportation, putting extra financial pressure on families, particularly those from middle-income backgrounds,” he explained.
Between 2018 and 2025, the cost of studying abroad has surged by nearly 24% due to rupee depreciation alone, observed Aayush Nagpal, Founding Team and Business Head at GradRight.
Impact on education loans
A weaker rupee has also made education loans more expensive.
“Since expenses are in foreign currencies while loan disbursements are in Indian rupee, students often require larger loan amounts, leading to higher long-term debt,” Singh explained.
Financial institutions have responded by increasing loan sanction limits, with some now offering up to ₹3 crore to cover education expenses, according to Nagpal.
However, students who had budgeted based on earlier exchange rates now find their loans insufficient and must apply for top-up loans.
“A student who initially budgeted ₹32.8 lakh for studying in the US at ₹82 per USD would now need ₹34.8 lakh at ₹87 per USD. This higher borrowing amount makes loan repayment more challenging, especially for those who do not secure high-paying jobs immediately after graduation,” Kini noted.
On the positive side, students who secure jobs overseas and earn in stronger currencies like the US dollar can repay their INR loans faster.
Changing student preferences
Currency fluctuations are also influencing students’ choice of study destinations.
“Many students are now looking at more cost-effective destinations, hybrid learning models, or alternative pathways to global education,” Singh said.
Nagpal added that while rupee depreciation alone does not dictate student choices, it is becoming an important factor.
“We have observed a trend, particularly in Andhra Pradesh and Telangana, where students who traditionally preferred the US are now considering Canada, Europe, and Australia, due to affordability and long-term career prospects,” he said.
Kini echoed this sentiment, stating, “Countries with lower tuition fees and living costs like Germany, France, and the Netherlands are gaining popularity. Hybrid education models, where students complete part of their degree in India before transferring abroad, are also helping reduce costs.”
Strategies to reduce the financial burden
To mitigate the financial challenges posed by the rupee depreciation, experts suggest several strategies:
Exploring hybrid and online learning: “Digital learning platforms offer internationally recognised courses at a fraction of the cost of studying abroad,” said Singh.
Hybrid models allow students to complete part of their coursework online before transitioning abroad, reducing overall expenses.
Applying for scholarships and financial aid: “A well-researched and compelling scholarship application can significantly reduce overall education costs,” advised Nagpal.
AI-powered scholarship matching tools can help students find financial aid opportunities.
Planning and budgeting early: “Students should create a detailed financial plan that factors in potential rupee depreciation and maintain an emergency fund to cover unforeseen expenses,” Kini recommended.
Working part-time: Many countries allow international students to work part-time, which can help cover living expenses.
Considering alternative destinations: Countries with lower tuition fees and a favourable exchange rate can provide quality education at a lower cost.
Using forex hedging strategies: “Parents can invest in dollar-denominated assets to hedge against rupee depreciation,” Kini suggested.
