Study Abroad Education Costs Rise Amid Rupee Devaluation and Increased Expenses

Rupee's Slide Hits Indian Families Planning Overseas Education or Foreign Vacations

The Indian rupee's depreciation beyond the 96-per-dollar mark is having a significant impact on families planning overseas education or foreign vacations. The currency has weakened 23 percent over the period of four years against the US dollar, with the exchange rate falling from around 78.6 per dollar in 2022 to 96.81 by May 21, 2026.

The rupee's slide has increased the cost of studying abroad, with a US university charging $40,000 a year now costing Indian students over Rs 36 lakh, up from roughly Rs 33 lakh a year ago. Even routine expenses like a £2 bus ride or a $10 meal have become significantly costlier in rupee terms. Prithvi Exchange Managing Director Pavan Kavad notes that the pressure is rising across other destinations as well, with students in the United Kingdom and Canada now spending Rs 8,000 to Rs 18,000 more each month on rent, groceries, and transport.

Overseas Education: A Rising Concern

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The depreciating rupee is not the only concern; the rising cost of education has also increased the cost of studying abroad. According to the Gyandhan Platform Analysis, the median loan amount requested for overseas education across major destinations has surged 50-100 percent in four years, with 2025-26 seeing the sharpest single-year jump.

The analysis clearly shows how much of the rise in median education loans was driven by rupee depreciation and how much was driven by higher overseas education costs in foreign currency.

Changes in Destination Choice

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As per Gyandhan data, the US and Canada, once the top two choices, now account for just 17 percent of loan applications combined. The UK has become the dominant destination, with cost-conscious alternatives, such as Germany and Ireland, gaining market share. The report notes that overseas education destination choice is not being driven by affordability alone, but changes in immigration policy, program durations, lower-tuition systems, and emerging alternatives are becoming major factors.

Families are responding by shifting their study-abroad plans to the new cost reality rather than abandoning them. Country preferences among Indian students seeking education loans have shifted dramatically over four years. The market still rewards high-quality students in employable fields, but the safety net has reduced, and students can no longer assume that any foreign degree plus a post-study work visa will solve the ROI.