Studying and vacationing abroad to
get costlier as rupee steadily declines It would be a good time to show some restraint, especially if you are planning to travel
Neeraj Khanna, co-founder and director, Spark Career Mentors, sums up the anguish of many parents due to the steady decline in the rupee. “Several mid-senior level corporate executives have taken the tough call of not sending their children abroad. I know of a few students who suffered from depression due to the last-minute change in their education plans.” Education: According to Khanna, parents who sent their child to study abroad last year are in an even worse state because they have no choice but to cough up a significantly higher amount for the next three years of undergraduate studies. In the case of Masters’, many students are self-funding their education or have taken loans.
And both may not be sufficient anymore. Overall, the situation for several thousand aspirants and their families isn't so great.However, the good news is that most would have already finished their payments this year and would have have landed in US campuses, say experts. By the first week of September, banks would have already disbursed loans. Also, the tuition and other annual fees would have been paid, and students would have landed for orientation programmes.The trend may have a negative impact on the flow of Indian students to the US in the next academic year. As such, from Rs 65 levels in March, when applications were being filled and submitted with universities abroad, the rupee has fallen to Rs 70 in August. “Parents and students are relieved academic sessions have begun before they could witness the latest fall in rupee. However, for those weighing in the pros and cons of choosing the US as a destination for the next academic year, this is going to have an adverse impact," Arun Jagannathan, CEO and Founder, CrackVerbal, an overseas education service provider told Business Standard.According to overseas education experts, those still in the middle of making final tuition fee payments in the US will have to additionally shell out anywhere from Rs 400,000 to Rs 600,000, compared to what they would have envisaged in March-April, while accepting admission when the rupee was at Rs 65 to the against dollar.By July and August, students finish making upfront payments for tuition fees for the year, apart from administrative costs such as buying books and laptops, as well as living costs like booking flights, dormitories, etc., which would be an additional $4,000-8,000, depending on location and university campus. According to Vibha Kagzi, founder and CEO, ReachIvy.com, there could see a shift in trends towards other countries offering high-quality education, such as UK, Canada, and Singapore. While the US will continue to rank high on the preference list, there is a marked shift in student preference to countries where the price point is not too high, and the value-add is perceived as excellent.Students’ corner: “We advise students to look for scholarships to fund their study abroad. Many top-ranked colleges abroad offer scholarships to deserving candidates,” adds Kagzi. In addition to getting scholarships, students can also look for part-time work at the college to fund/offset their loans. It is common practice for students to take up campus jobs, internships, teaching or research assistant roles to fund their education. Not just that, even by keeping a check on their budget and lifestyle, students can save a lot of money. However, what is important is that if they are planning to work in the US, the return on investment may work in their favour in the future.Vacation: If you have already booked your flights and hotels in advance, then the rupee depreciation will not affect you much. What will rise is the cost of food, local travel, tickets for sightseeing, etc. Sharat Dhall, chief operating officer (B2C), Yatra.com, points out that the rupee has depreciated against the currencies of Europe, UK, US, Hong Kong, China and Singapore as well.
ARTICLE SOURCE- BS