Studying in the US becomes ₹4 lakh costlier, weak rupee and stricter visa rules raise student anxiety

New Delhi (The Uttam Hindu): Despite a slight recovery of the Indian rupee against the US dollar over the past two trading sessions, experts say the relief is temporary. Earlier this week, the rupee hit a record low, breaching the psychological 91 mark against the dollar. Although the Reserve Bank of India stepped in by selling dollars through banks to stabilise the currency, the rupee has still depreciated by over 5 percent so far this year.

According to a Bloomberg report, analysts believe the weakness in the rupee may continue until a new trade agreement is reached between India and the United States. While a strong dollar benefits sectors like IT and pharmaceuticals, it has delivered a major financial setback to Indian students and families planning higher education abroad, especially in the US.

Higher costs strain student budgets

The falling rupee will directly impact students planning to begin their studies in the US from the Spring 2026 intake. A closer look at exchange rate changes shows that due to nearly 6 percent depreciation in 2025, a course with an annual tuition fee of USD 55,000 will now cost students about ₹3.3 lakh more. The burden increases further when annual living expenses of around USD 15,000 are added.

Overall, currency fluctuations could push the yearly cost of studying in the US up by nearly ₹4.11 lakh in 2026. The exact increase may vary depending on the city and university, but the financial pressure is clearly rising.

Sharp drop in Indian students heading to the US

The impact of rising costs and uncertainty is now visible in official data. Citing figures from trade.gov, The New York Times reported that the number of Indian students going to the US for higher education fell by 44 percent in August 2025 compared to August 2024. This marks the steepest decline since the pandemic.

Experts say the drop is not only due to the weak rupee, but also stricter visa rules and a growing anti-immigration environment in the US. However, they add that while the currency slump is discouraging, it has not completely shattered students’ overseas education plans rather, it has made them more cautious.

Families stress-test budgets

Amid rising expenses, Indian families are reassessing their financial planning. Aritra Ghoshal, founder of OneStep Global, said families are now “stress-testing” their budgets and showing greater interest in lock-in options for tuition fees and dollar-denominated education loans. These measures help protect against future currency volatility.

He added that higher living costs and loan repayment pressures are forcing students to adopt stricter financial discipline. Families are planning more carefully and factoring in currency risks before taking major decisions.

Exploring alternatives beyond the US

With education becoming more expensive and rules more stringent, student preferences are also shifting. Many are now choosing degrees that offer clearer employment prospects or looking at countries with transparent post-study work visa policies. At the same time, rising overseas costs are encouraging some students to continue their education in India.

According to PG Babu, Vice-Chancellor of Vidyashilp University, families are reflecting more deeply on the real value of studying abroad. Students are increasingly questioning what tangible benefits they will gain. Improvements in research and academic quality at Indian universities have also given students stronger reasons to stay back.