Studying abroad becomes costlier with the rupee in free fall

Studying abroad has been a growing trend in Nashik for the last three years, but with the rupee in free fall in the last few days this might change soon.

Many parents, whose children are graduating from universities in the US told TOI that expenses has witnessed a steep price rise of 25% to 35% from December 2017 to September 2018.


More than 500 youths from Nashik are presently preparing for various entrance tests such as GRE, GMAT, SAT, TOEFL, IELTS to qualify for studying abroad. However, their parents are skeptical about US universities, as studying there has become more expensive by Rs 4 lakh per annum, as compared to last year. Engineering students prefer US universities, as they provide lucrative career options.

“The rupee has undergone a significant fall since last semester. Especially from April 2018, the fall in exchange rate is more than Rs 7. Each and every expense has gone up by 25%,” said Satish Gaikwad, whose daughter is studying in the US.

According to Gaikwad, he paid Rs 9.23 lakh as fees for the third semester. For the fourth semester, he will have to pay Rs 11.28 lakh.

He added, “Even if we consider regular hike in semester fees, the increased expense is mostly because of the rising exchange rate.”

More than 50% students going to study abroad take education loans. However, due to the sliding rupee, parents’ contribution to the down payment has gone significantly up.

Harshad Kulkarni public relations officer of State Bank of India education loan department said, “Generally, parents have to raise 30% of the total loan amount, while 70% is adjusted by the bank. If we consider total fees as Rs 60 lakh, then parents had to earlier raise Rs 25 lakh. At present, they have to arrange for at least an additional Rs 10 lakh or more.”

Due to changing scenario, the education consultants have started suggesting other options.

Rajan Thakur, a leading study abroad consultant said, “Master degree education is free of cost at many European nations including Germany. For those who want to study social sciences, politics, inter-cultural studies, we suggest Australia, New Zealand and Canada.”