Rupee slide hits parents of US-bound students

Tuition fee and living costs shoot up. The impact will be bigger on thousands of parents who have taken education loans.

Parents are worried, not over the rising tempers on the campuses in the country, but the depreciating value of rupee that has increased burden on the tuition fee cheque meant for their children studying abroad.

With the rupee touching Rs. 68.47 against a dollar on Wednesday, the burden has increased considerably on the students and their parents compared to last August, the start of fall semester when Indian students move to United States for higher education. Last August, the value of rupee was 65.11 to a dollar. On an average it is an increase of Rs 40,000 additional amount that students have to pay as tuition fee excluding their living costs that would add up another Rs. 10,000 to Rs. 15,000 per semester.

“The volatile market, rising prices apart parents will have to deal with this additional burden,” says V. Ram, Director of Medico Abroad. Most students in the US pay their next fee instalment next month and it means parents’ purse would be lighter. The impact will be bigger on thousands of parents who have taken education loans .

The tuition fee in the United States varsities where more than a lakh Indian students are presently pursuing education ranges between US$ 15,000 to US$ 40,000 per year . Living expenses hover around US$ 20,000. Last year when students took loan value of rupee was 62 and now it has crossed 68, a difference of Rs 7. So if a student has to pay his semester fee of US$ 10,000 he has to take an additional burden of Rs. 70,000. It is the same case with European countries or China where the fee is paid in dollars.

It is not just the students on the campuses but also those applying to the varsities. Such students would end up paying more for application forms of TOEFL, IELTS, GRE or GMAT in addition to the application forms of various universities that vary between $50 and $500 depending on the institution. Most students apply for three to four varsities.

However, another set of students are smiling with the rupee depreciation. Particularly students who have finished their course, got employed and started repaying the loan. For every US $ 10,000 repaid now they would be saving Rs. 40,000 to Rs. 50,000. Like Arun, who has studied in Texas Tech University in Lubbock is happy with the slide as he has decided to repay now. And the savings would be a gift to his parents.