The combination of a steep rupee depreciation and tighter visa regulations is leaving many Indian students questioning whether overseas study remains an affordable and viable option. The rupee has fallen by up to 47% against key currencies since 2019, driving up loan repayments for students like Pragati Priya, who plans to enroll in a master’s program in Rome.
Student‑financing companies have observed a significant rise in borrowing needs. Sushil Sukhwani of Edwise International explains that enrollments to the UK and US have already dropped 20% over the past two years, with an expected additional 10‑15% decline. In the United States, enrollment fell nearly 7% between February 2025 and February 2026, while 76% of UK universities reported a decline in Indian student numbers for the January intake.
A sharp devaluation of the rupee has compounded these challenges. "Many students already abroad have paid part of their fees, but are now having to refinance loans and arrange additional funding to cover future instalments," Sukhwani says. The rupee has dropped more than 10% against the US dollar in the past year, according to his own calculations.
The financial strain, coupled with the risk‑averse attitude of upper‑middle‑class families, has forced many to reconsider their plans. Sudhanshu Kaushik, founder of the North America Association of Indian Students in Washington, notes that students who arrive expecting skilled employment often end up in the gig economy, jeopardising their ability to pay off education debt.
Despite these headwinds, demand for foreign education remains strong. The Global Student Flows Report 2026 forecasts that Indian student enrolments in the "big‑four"—US, UK, Canada, and Australia—will decline by only 0.5% annually through 2030.
At the same time, interest in alternative destinations is growing. Mayank Maheshwari of University Living says that countries such as Germany, Ireland, and Italy are becoming more attractive because of lower tuition costs, favourable post‑study work pathways and stronger employment prospects.
For students like Priya, affordability was a deciding factor. She chose Italy over the UK or US: "My tuition fees are roughly half of what I would have paid in the UK, and the US was out of the question—two years versus one in Rome."
Experts warn that the combination of a depreciating currency, job‑market uncertainty, AI advances and stricter visa policies has created a perfect storm. "The US especially risks undermining one of its most successful sources of influence abroad," Kaushik argues, noting that the resulting hardships affect students, universities, college towns and the broader economy.
As India continues to remain a major source of international students for the UK and US—surpassing China a few years ago—host countries face a growing challenge. If this trend persists, the universities that have long benefited from Indian enrolments may see a decline that could have lasting economic implications.
