New Delhi, Sept. 16 -- Tighter and uncertain visa rules, rising costs, increasing anti-immigrant rhetoric, housing discrimination and food-based prejudice are making Indian students' study-abroad dreams more challenging with each passing day. Adding to this ordeal is the weakening Indian rupee, which is hitting students studying abroad hard. Unfortunately, the rupee is Asia's worst-performing currency in 2026, having tumbled to a historic intraday low of 96.47 against the US dollar.
The rupee's decline compounds an existing concern rather than creating a new one, said Tripti Maheshwari, Co-Founder, Student Circus. According to her, when the rupee weakens, tuition, accommodation, living expenses and loan repayments against a foreign currency all rise together, adding pressure on top of the visa uncertainty and job-market risks that families are already navigating. "A weaker rupee also affects education loans directly: EMIs calculated against a foreign currency become costlier to service the longer the rupee stays under pressure, which changes how families plan repayment even before the student graduates," she said.
As reported earlier, the study-abroad dream is no longer driven only by students from metro cities in India. Studies show that an increasing number of students pursuing international education come from small towns, particularly Tier 2 and Tier 3 cities. This means not all Indian students chasing global education dreams come from affluent families. Many are taking up odd jobs in addition to their part-time shifts to sustain themselves. In fact, reports suggest that several Indian students are skipping meals or surviving on just one meal a day to save money, a harsh reality amid the rupee's decline.
"The weakening rupee has become one of the more immediate pressure points this year. The rupee has depreciated by roughly 10 per cent or more against the US dollar over the past year, with similar movement against the pound and euro. For a family budgeting Rs 40-70 lakh for a full programme, this kind of currency movement alone can add anywhere from Rs 4-8 lakh a year in extra cost, even before accounting for tuition hikes or inflation in living expenses at the destination. The impact shows up most visibly in loan behaviour, many students who took loans a year or two ago, calculated at a stronger rupee, are now finding the sanctioned amount insufficient and are going back to their banks for top-ups. It has made currency planning, timing remittances, sometimes converting funds in advance, a much more active part of pre-departure planning than it used to be," said Lakshmi Iyer Chief Client Officer & Chairperson, StudyIn India.
The reality for most Indian families planning to send their children abroad for higher education is closely linked to savings. Parents save, while students often take loans to fuel the dream. The end goal is to study abroad and eventually settle overseas with a well-paying job. However, rising tuition costs and the falling rupee are increasingly becoming a burden for Indian families.
Today, many Indian students' lives abroad are being shaped by discounts and cost-cutting. They look for discounted groceries and food, making the study-abroad experience far removed from the international lifestyle that was once romanticised. "An Indian student today needs to show nearly Rs 4 lakh more in their bank account to cover flights and basic visa maintenance than they did two years ago. In the UK, the monthly maintenance requirement has risen from £1,023 to £1,171 over the same period. Flight tickets have also become more expensive, with students now paying around Rs.20,000 more per ticket, roughly a 30% increase compared to two years earlier, with the rupee's depreciation accounting for a significant part of that increase. This is pushing more students toward alternatives either more affordable destinations where the cost gap is smaller, or International Branch Campuses in India that offer the same degree without the currency exposure at all. Affordability has always mattered in this decision. What has changed is that it is now weighed alongside employability and policy stability, not in isolation, and the rupee has simply added one more variable to that calculation," added Maheshwari.
A 2026 study mentioned that Indian student enrolments in the US, UK, Canada and Australia are forecast to decline by an average of 0.5% annually through 2030. In such a scenario, as Maheshwari pointed out, other affordable destinations such as Ireland, Italy and Germany are attracting Indian students due to their employment prospects, better post-study work permits and lower tuition fees.
"The rupee is trading close to 94.5 to the dollar in early September 2026, against roughly 88 a year ago, and it touched an all-time low near 97 in May. On a course with tuition of USD 40,000 a year, that twelve-month move alone adds close to 2.6 lakh rupees to the same degree at the same university. Families tend to price the whole degree in rupees, and that overstates the risk. Currency exposure sits almost entirely on the money sent from India during the study period. If a student expects to work in the country where they studied, the salary arrives in that same currency, and a dollar loan repaid out of a dollar salary carries no exchange rate risk through the repayment years. Working out which part of the cost is actually exposed is the first thing I would do before letting a weak rupee change the plan," said Sonal Kapoor, Global Chief Business Officer, Prodigy Finance.
The depreciation of the Indian rupee has indeed increased the financial burden on students planning to study abroad. Most experts therefore suggest better financial planning and budgeting. Students should aggressively apply for scholarships and explore all available funding options. They should also consider education loans with favourable terms, research destinations carefully and look for quality, shorter-duration courses. Proper planning could help students pursue their global education plans despite the growing financial pressures.
Published by HT Digital Content Services with permission from Millennium Post.