Lure of foreign education
It’s a dream of almost every Indian student to go abroad. The intellectual surroundings, exposure to the wider world, competitive environment are some of the major reasons that drive our youngsters to American or European shore. However, the first and major constraint is funding.
Depreciating Indian rupee and its impact
Students planning to go abroad for their further education (USA for instance), need to pay for the tuition fees and living expenditure, in dollars. When the value of the rupee falls, more dollars are needed to pay the same amount. Hence, the depreciation of rupee adds to your woes.
Here are a few aspects, students need to keep in mind regarding rupee’s free fall.
Firstly, one should know as to how the rupee-dollar exchange applies to your pocket. When rupee depreciates in value you need to spend more of it to purchase a given set of items.
The rupee going down is bad especially for those, who have to convert rupees into dollars – families of students abroad, importers and travellers from India. In January 2013 the value of INR was at Rs 55 level and now it has reached Rs 63 level.
For an instance – Cost of studying in US is around $25000 annually; well this is just the fee. The living expenses further tax you around $15000 an year. Hence a student usually goes on to spend around $40000 annually. This surely is a huge amount.
As the Indian rupee has been falling at almost 7 percent against US dollar since, the start of the year, Indian students abroad or the aspiring students will necessarily have to up their budget by at least 10 percent compared to what the previous year’s scenario.
The only category of students who gain from this situation are those who have completed their course and are beginning to repay their loan (if taken). Depreciation of rupee for them would mean lesser dollars being paid to the bank.
Thus, many students who earlier were planning to go to US or UK have had to settle with a country such as Malaysia, Hong Kong etc, as the status of INR won’t cost them so badly there; but there are a few; who unfortunately will have to give up on their dream, well at least for the time being.