The Real Cost of Studying Abroad

How to estimate the full cost of studying abroad, including tuition, living costs, currency risk, remittance rules and the return on investment.

Studying abroad can open doors, but it is a major financial decision, often costing several lakhs to crores of rupees.

The full cost

Tuition fees, which vary widely by country, university and course.
Living costs: rent, food, transport and utilities, often more than tuition in expensive cities.
Health insurance, often mandatory.
Visa and application fees.
Travel.
Proof of funds: many countries require showing enough money to cover costs.

Currency risk

Costs are in foreign currency. If the rupee weakens, the rupee cost rises. A 10 percent fall in the rupee raises the cost of a course by about 10 percent.

Sending money abroad

Under the RBI’s Liberalised Remittance Scheme, residents can send up to 250,000 dollars a year abroad for permitted purposes, including education. Tax collected at source may apply on large remittances, though rules are more favourable for education, especially when funded by an education loan. Check current thresholds.

Return on investment

Ask:

What are job prospects after graduation, in that country and in India?
What are post-study work rules? Many countries have tightened them.
How long will it take to repay loans?
Are there cheaper alternatives in India or other countries with similar outcomes?

Changing rules

Countries such as Canada, Australia, the UK and the US have changed student visa and work rules in recent years, affecting costs and opportunities.

Reducing costs

Scholarships and assistantships.
Countries with low or no tuition, such as Germany’s public universities.
Shared housing and cooking.
Part-time work where allowed.

The currency shock

A student budgets 30 lakh rupees for a two-year master's degree abroad. During the course, the rupee falls 8 percent against the local currency, adding over 2 lakh rupees to her costs. Her family had kept a buffer, so she manages.

Thinking tuition is the main cost of studying abroad

Living costs, insurance, travel and currency changes often add as much as tuition or more.

Key takeaways

Include tuition, living costs, insurance, visas and travel in your budget.
A weaker rupee raises the cost of studying abroad.
The Liberalised Remittance Scheme allows education remittances, with TCS rules to check.
Consider job prospects, post-study work rules and loan repayment.