A falling Rupee and visa curbs reshape overseas education plans

A foreign degree that once seemed aspirational is fast becoming a financial strain for Indian families. In just a few years, the cost of studying abroad has increased significantly, driven not by tuition hikes alone, but also by a relentless slide in the rupee. The tightening of global visa regimes is adding to the friction.

The numbers tell a stark story. RBI data shows outward remittances for education dropped 23% year-on-year in August 2025 and plunged further by October, signalling a sharp pullback by Indian students. The slowdown reflects affordability and uncertainty. Overseas education inflation is running at 10-12% annually, far outpacing household inflation in India. Add a weakening rupee, and the math changes dramatically. An undergraduate degree from Harvard that cost around ₹53 lakh in 2021 now translates to nearly ₹78 lakh today as per EduFund. That is before factoring in healthcare, visa renewals, and post-study job-search costs, which can add another 10-20% to the final bill.

At the same time, visa pathways are narrowing across major destinations. Canada's student visa rejection rate for Indians surged to nearly 74% in August 2025, up from just 32% two years earlier, according to Reuters. The US recorded a decade-high rejection rate of 44% for F-1 student visas, while over 100,000 visas across student and work categories were revoked last year due to stricter screening. In the UK, post-study work periods have been shortened and financial proof requirements raised, making even traditionally "safer" destinations more demanding and expensive. As savings fall short, education loans are no longer supplementary; they are becoming the primary funding source. According to GyanDhan, between FY22 and FY24, the average sanctioned education loan has jumped nearly 15%, crossing ₹33 lakh. Further rupee depreciation could push borrowing beyond lender comfort and family finances.