Falling Rupee Triggers Massive Fee Hike for Indian Students Planning to Study Abroad

Currency crash, forex charges and taxes push foreign education budgets up by lakhs for September intake aspirants

Advertisement

Ahmedabad | Gujarat — While the ongoing war in West Asia for the past one month has destabilised the trade and industry in India, there has been a biggest economic blow on the financial condition of tens of thousands of students studying abroad as well as hundreds of aspirants who were supposed to take admissions in the reputed universities and colleges in the developed countries. 

When the market closed on Monday, the rupee was trading at a historic low of 95.22 against the US dollar. With the rupee depreciating against foreign currencies including the US dollar in the last one month alone, students studying abroad and those planning to go abroad for studies have been facing a steep increase in fees in the foreign universities and colleges. 

Foreign Study Consultant Pooja Shah says that the process of students going abroad for the next September intake was carried out from December to February. At that time, the US dollar, Canadian dollar, Euro or Australian dollar were steady and stable. The estimates given to students and their parents going abroad at that time have now changed by the end of March. 

“Those who were given an annual estimate of Rs. 35 lakhs have now been given Rs. 40 lakhs estimate, and those who were given an estimate of Rs. 50 lakhs have now been given Rs. 56 lakhs. Many parents and students have been in big trouble. Many parents’ education loans have been approved as per the previous estimate, and now they have to pay the additional amount from their household savings” said Shah. 

Whether it is Canadian dollars, Australian dollars or Euros, the fees for studying abroad have increased drastically by 8 to 10 percent. The commissions, taxes, and income taxes charged per unit are a heavy burden in paying the fees abroad. Parents of students going to study abroad face a huge burden in paying the fees in foreign universities, which, along with the daily, minute-by-minute change in the currency of that country, have to pay a huge burden of commissions, taxes, GST, surcharges, and income taxes charged per unit. 

For example, if the fees have to be paid in American dollars and the rate of the American dollar is fixed at Rs. 95.22, then the agent charges his commission ranging from 75 paise to Rs. 1.50, in addition to platform fees, taxes, GST, surcharges and income tax, parents have to pay up to Rs. 97.75 or Rs. 98 for one dollar. 

Such a large amount of extra expenses also creates a huge financial burden. Similarly, Rakesh Patel, father of Jil Patel, a student who went to Canada to study last year, says that when his daughter went to Canada in September 2025, the price of the Canadian dollar was Rs. 58 per Canadian dollar. 

On March 30, the price of the Canadian dollar was Rs. 67.95. In Canada, semesters change in just 4 months and two semesters are completed in 8 months, now it is time to pay the fee. The fee that was last year has to be paid, but now I have to pay 15 percent more because the Canadian dollar has increased against the rupee. 

Status of Indian currency against foreign currencies

Currency exchange rate

1 US dollar Rs. 95.22 paise

1 EuroRs. 108.61 paise

1 Canadian DollarRs. 67.96 paise

1 Australian DollarRs. 64.92 paise

1 PoundRs. 125.22 paise

Advertisement