The Rupees value against the US dollar has declined by 5 points, but this translates to a loss of several lakhs for parents of students pursuing education abroad, as tuition fee and expenses.
Studying abroad is likely to get expensive by a whopping Rs 4 lakhs compared to last year, thanks to the continuous slide of Rupee against the US dollar. The Indian currency hit an all time low of Rs.70.08 against the dollar a difference of whopping Rs.5 compared to last year. Students aspiring or currently studying abroad have been affected by this trend.
Students in Telugu States, who have a penchant for going abroad to pursue sciences courses, are severely impacted. “My son is pursuing his fourth year of engineering in Bengaluru. We had plans to send him to the US for further studies and even applied for a loan form the SBI. The fee is about Rs.60 lakh. We had planned to arrange Rs.25 lakh while taking a loan for rest of the amount says city based Hemalatha.
“However with the Rupee crashing, we now have to manage an additional amount of Rs.10 lakh. It’s a very stressful situation,” she adds. Experts say that over 50 per cent of students going abroad for education take loans. The entire process is financially very intensive. First, the student has to pay Rs.12600 towards take IELTS and Rs.14000 to take GRE.
Apart from this, they have a visa application charge that goes up to Rs.11000/- and a SEVIS fees, that is paid to the Homeland Security Department of USA, that comes up to 2000 dollars. So, totally a students has to pay upto Rs.1 lakh rupees even before getting entry into a college abroad. As student pursuing MS in the US spends on an average Rs.10-14 lakh; those studying graduation spends Rs.16-30 lakh.
Since the Rs.5 fall in exchange rate, many parents are forced to reassess their finances. Even today, we had discussions with some parents on ways to obtain more loans or even look for cheaper colleges abroad,” says Sanjeev Rai CEO of Hyderabad Overseas Consultant. He says it’s not just USA, students in Australia and Canada will be equally effected. One Canadian dollar equals to Rs.53.42 and one Australian dollar is equal to Rs.50.67.
Adding to the pain, it’s time for these students to pay their fall semester fees. “Its not a good feeling to know you are in debt. It’s even mores stressful that despite the debt we are now felling the crunch. Just three months ago, when I had to pay mu summer the Rupee crashed and I decided to wait till it regains. After waiting for 1.5 months there was no improvement, and my late payment fee kept mounting. So we paid it somehow with an additional $50 for late payment,” says Akruti Saxena who studies in Texas.