Rupee slide, wars and more: Indian students in US battle currency crisis no one prepared them for | WION Horizons

Amid global turmoil in West Asia and elsewhere, Indian students pursuing higher education in the United States are now facing mounting financial pressure. A weaker rupee, geopolitical tensions and rising travel costs are increasingly making overseas education increasingly expensive for the millions of Indian students who go abroad to pursue higher education every year. For many aspiring students, the dream of an international degree remains alive, but as the rupee continues to weaken and global uncertainties deepen, financing that dream is becoming increasingly difficult.

How many Indian students go abroad for higher education?

According to data from the Ministry of External Affairs (MEA) in 2025, over 1.2 million Indian students enrolled in higher education overseas; the year before this number stood at 1.33 million. A quick look at MEA data shows that while the overall number remains high, outbound enrolments have seen a year-on-year decline. The reason for this decline: uncertainty surrounding global mobility, stricter visa rules, policy caps, and economic volatility.

Global headwinds and rising financial burden

According to education lender Prodigy Finance, while student interest in studying abroad remains strong, the financial burden on families has risen sharply over the past few years. The company noted that international education is no longer just about securing university admission. Instead, it has become a lengthy process involving financial planning, funding challenges and uncertainty even before students arrive on campus.

According to data from Prodigy Finance's earlier research, more than 79 per cent of Indian students planning to study abroad come from Tier 2 and Tier 3 cities. Of this, nearly 60 per cent belong to modest-income households where parents often make significant financial sacrifices to support their children's education ambitions, said the lender.

Falling rupee causes headache for parents

The pressure has become more visible as the Indian rupee faces depreciation against the US dollar, increasing the cost of tuition fees, accommodation and day-to-day living expenses for students studying overseas. Already this year, the rupee has depreciated by 7.04 per cent. The rupee opened the year trading at approximately ₹89.50–₹89.90 per US Dollar in January but repeatedly hit record lows every month between January and May. On May 19, 2026, it touched an all-time low of ₹96.56.

Sonal Kapoor, Global Chief Business Officer at Prodigy Finance, said students should carefully evaluate how they finance their education in the current environment. "This is a very important time for Indian students to consider funding in USD or in the same currency as their destination country. Even regular travellers from India are already talking about how INR depreciation is increasing their travel costs, so imagine the additional pressure students face when they are moving overseas for education and managing tuition, housing and daily expenses altogether," Kapoor said.

Kapoor added that currency fluctuations are only one part of the challenge. Students are simultaneously dealing with visa-related uncertainties and rapidly rising airfare costs linked to global fuel market disruptions.

"Flight fares are increasing rapidly, and for students from modest backgrounds, a huge amount of money is now going into travel itself. Currency exchange losses are adding another layer of pressure, and we are receiving a large number of emails from students who are anxious and trying to understand how to manage everything together," she said.

What now?

With fuel prices and geopolitical tensions continuing to affect global travel and financial markets, Prodigy Finance advised students planning to leave for upcoming academic intakes to make travel arrangements early and opt for flexible flight bookings wherever possible.