Studying abroad gets costlier: Rupee's 10% slide against dollar may cost you ₹8 lakh extra a year – here's the math

Indian students heading overseas are discovering that a falling rupee is making an already expensive dream even costlier. With the Indian currency depreciating by more than 10% against the US dollar over the past year and weakening against several other major currencies, families are being forced to rethink budgets, seek additional funding, and, in some cases, reconsider where and how they pursue international education.

According to Saurabh Arora, Founder and CEO of University Living, the impact is substantial. “A depreciation of over 10% in the rupee increases the overall cost of studying abroad, as most major expenses are paid in foreign currency. Depending on the country, institution, and course, this can translate into an additional ₹4–8 lakh annually for programmes with total yearly costs in the range of ₹35–70 lakh.”

Stephen Roach, Director, Business Delivery at OneStep Global, offered a similar estimate. “For a student budgeting approximately ₹50–60 lakh for a two-year postgraduate programme, the same degree can effectively become ₹5–7 lakh more expensive purely because of exchange-rate movements.”

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It’s not just the US dollar

Dhruv Krishnaraj, Co-founder of Student Circus, pointed out how the problem extends beyond America.

“This isn’t just a US dollar story. The rupee has weakened against the currencies of almost every major overseas study destination, from the UK and Canada to Australia and much of Europe. For families, that means the cost of studying abroad has gone up almost irrespective of where their child is headed.”

He added that overseas education is “a three- or four-year financial commitment” and that “a 10% currency movement may sound modest on paper, but over the lifetime of a degree, it can translate into several lakhs of rupees in additional costs.”

Tuition and accommodation take the biggest hit

Experts say tuition fees remain the largest expense category and therefore account for the biggest increase.

Arora said, “Tuition fees and accommodation are seeing the largest impact in absolute terms because they typically account for the biggest share of a student’s overall budget.”

Abhijit Zaveri, Managing Director of Career Mosaic, noted that accommodation costs have become especially challenging in major student hubs such as New York, Toronto, Vancouver, Sydney and Melbourne, where inflation and housing shortages have pushed expenses higher.

Roach said monthly living costs are often where families feel the pressure most acutely.

“Rent, groceries, transportation, utilities, and other day-to-day expenses are exposed to exchange-rate fluctuations every month rather than once or twice a year,” he said.

Airfares and health insurance premiums are also becoming more expensive, according to Student Circus.

Families are revisiting budgets midway

The currency shock is increasingly forcing parents and students to revise financial assumptions made at the time of admission.

“Yes, and we are seeing this happen more often,” said Krishnaraj. “Many families plan carefully for tuition fees but underestimate hidden costs and don’t always account for exchange-rate volatility over a multi-year program.”

University Living’s Arora said additional funding requirements are emerging in the form of larger education loans, top-up financing, increased family support and withdrawals from savings.

Top-up loans and bigger borrowing requirements

Students relying on education loans are among the most exposed to currency volatility.

“We are seeing greater interest in top-up loans and additional financing as a result,” said Krishnaraj.

Roach said students who secured loans based on exchange rates prevailing one or two years ago are discovering that sanctioned amounts no longer fully cover the actual costs.

According to the upGrad Study Abroad Transnational Education Report 2024-25, nearly one in three Indian students now depends on education loans to finance overseas studies. 

The problem is structural: loan amounts are sanctioned based on estimated costs at the point of application. When the rupee weakens after the loan has been approved, the sanctioned amount may no longer fully cover tuition and living expenses. “Students who took education loans based on exchange rates from a year or two ago may find that the originally sanctioned amount no longer fully covers the cost of their degree,” said Krishnaraj.

Experts say families are increasingly borrowing more upfront to create buffers against future volatility.

Students are becoming more value-conscious

The weaker rupee is not reducing the appetite for global education, but it is changing how students choose destinations.

“Absolutely. Families are becoming far more value-conscious than they were a few years ago,” said Krishnaraj.

University Living’s Arora said Germany is attracting strong interest because many public universities charge low or no tuition fees, while France offers comparatively lower costs and scholarship opportunities. Ireland and New Zealand also continue to attract students because of favourable post-study work opportunities.

Career Mosaic noted that Ireland recorded nearly 30% growth in Indian student enrolments during 2024-25, while France saw a 17% increase.

Roach believes students are increasingly focusing on scholarships, total cost of attendance, programme duration and long-term return on investment. “The aspiration remains intact, but the decision-making process is becoming significantly more financially sophisticated,” he said.

New study models are gaining popularity

Amit Garga, Co-founder, said the weaker rupee is changing not whether students go abroad, but how they do it.

He said students are increasingly exploring transfer programmes and credit-transfer models that allow them to start their education in India before moving to partner universities overseas.

“These models provide access to globally recognised qualifications while helping manage tuition and living costs more effectively,” he said.

According to Garga, the trend aligns with the objectives of the National Education Policy 2020, which encourages internationalisation and student mobility.

Across the industry, experts are unanimous on one point: financial planning has become more important than ever.