Studying Abroad Has Become Costlier Despite No Tuition Hike or Lifestyle Change: Here’s Why

New Delhi: Studying abroad is a dream for millions of Indian students, but fulfilling that dream is becoming increasingly expensive. Surprisingly, this rise in costs is not due to tuition fees or lifestyle changes—both have largely remained the same. The real culprit? A declining Indian rupee.

Why Studying Abroad Feels More Expensive
Over the past year, students and parents have repeatedly raised concerns: “Our college fees haven’t increased, so why is getting a degree abroad becoming more expensive?” Parents who planned their children’s overseas education using savings or loans are now struggling to keep up with the budget.

In 2026, for most international students, tuition fees or high rent are no longer the primary issue. Instead, the falling value of the rupee against foreign currencies is significantly increasing the overall cost of studying abroad. Even though tuition fees, rent, and lifestyle haven’t changed, the weakening rupee has made foreign education more expensive.

How the Falling Rupee Impacts Costs
Over the past year, the Indian rupee has weakened considerably against the U.S. dollar, British pound, and euro. As a result, the cost of studying abroad in rupee terms has increased by several lakh rupees. For example, a master’s program in the U.S. that cost around ₹40 lakh two years ago now costs ₹45–48 lakh, despite the tuition fees remaining unchanged.

Where Students and Parents Go Wrong
When planning for studies abroad, students and parents usually calculate the total expenses in rupees. They rely on savings, loans, or sometimes financial support from relatives. However, they often overlook the fact that tuition, rent, health insurance, and even groceries abroad are paid in foreign currencies. When the rupee weakens, these costs automatically increase.

For instance, a student with an annual study cost of $40,000 in the U.S. would pay ₹30 lakh when the dollar is at ₹75. If the dollar rises to ₹83–85, the same expenses jump to ₹33–34 lakh, meaning a two-year program could cost 6–8 lakh more without any change in lifestyle or tuition. Many families realize this miscalculation only months later.

The Cost of Poor Financial Planning
One common mistake is assuming that studying abroad is a one-time expense. In reality, the process spans several years. During this period, fluctuations in exchange rates, inflation, and interest rates significantly impact overall costs. Families often plan roughly, adding a small buffer, assuming it will cover all uncertainties.

Even a 3–4% drop in the rupee can disrupt the budget entirely, potentially making a two-to-three-year course unaffordable.

The Right Way to Plan Financially
Proper financial planning is crucial for studying abroad. Some students convert money into foreign currency in advance or use forex cards and foreign bank accounts. However, this may not be feasible for middle-class families. Experts advise stress-testing your budget: consider scenarios where the rupee falls further than current rates. If your finances cannot cover the expenses in such cases, the course may be beyond your reach.

In short, when planning for overseas education, do not rely on current exchange rates. Factor in future currency fluctuations to ensure your study abroad dreams remain achievable.