Falling rupee to hit Indian students planning US studies in 2026, costs may rise by ₹4 lakh a year

The Indian rupee hit a record low of 91 against the US dollar this week. While it strengthened slightly later, the currency has still lost over 6% of its value this year.

The RBI stepped in on Wednesday by selling dollars to stop the slide. However, experts believe the rupee will stay weak until a new US-India trade deal is finalised, Bloomberg reported. While a stronger dollar helps sectors like IT and pharma, it creates a major hurdle for Indian students planning to study abroad.

The falling rupee is likely to burn a hole in the pockets of students set to start their studies in January 2026 (Spring intake). A 6% fall in 2025 means the course, costing $55,000, would now incur an additional ₹3.3 lakh in tuition alone. If you add the living cost of $15,000 a year, an extra 6% would cost Indian students an extra ₹81,000.

Overall, the cost of studying in the US could be more expensive by ₹4.11 lakh a year (when the fee is $ 55,000) in 2026, purely due to the change in currency exchange rates. The exact additional cost would vary from case to case based on the university and the city you attend.

What experts say

The number of Indian students going to the US for higher education declined by 44% in August 2025 compared to August 2024, according to a report by The New York Times, which quoted Trade.gov data. It was the sharpest fall after the Pandemic.

The drop in these numbers could be attributed to multiple reasons, including changes in visa rules and overall anti-immigration sentiment. Experts believe that the falling rupee, albeit discouraging for US-bound students, does not fundamentally change anything.

Aritra Ghosal, Founder of OneStep Global, notes that families are now “stress-testing” their budgets. “We see more interest in US dollar-denominated loans and tuition-fee 'lock-ins.' These help families fix their costs despite currency shifts,” Ghosal said.

He said that rupee depreciation does raise the effective cost of studying abroad, particularly in terms of living expenses, foreign exchange exposure, and loan servicing, but it has not fundamentally weakened student intent.

“What it is doing is forcing sharper financial discipline. For example, some families tend to plan earlier, stress-testing budgets against currency volatility, and being more conscious of repayment pressure under current exchange rates.

“While a small segment of students is reassessing destinations or deferring by an intake, most are recalibrating choices: prioritising employability-linked programmes, scholarships, and destinations where post-study work outcomes are clearer. In the current environment, students and parents need to look beyond headline tuition fees and plan holistically, factoring in currency risk, loan structures, and long-term career returns,” advises Ghosal.

Many students are now prioritising degrees that lead directly to jobs. They are also looking at destinations with clearer work rules after graduation.

Some believe these rising costs will encourage students to stay in India.

P.G. Babu, Vice-Chancellor of Vidyashilp University in Bengaluru, said families are taking a moment to reflect. “The discussion is shifting. It’s no longer just about the destination. It’s about the long-term professional value of the education,” he said.

“I also see this as a moment of recalibration. Students are beginning to ask more meaningful questions about why they want to study abroad and what they truly hope to gain from the experience. At the same time, Indian universities have significantly strengthened their academic depth, research culture, and global linkages,” Babu said.

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