The cost of studying abroad is increasing for Indian parents. The Indian Rupee has depreciated significantly against the US Dollar (USD), reaching a new low of Rs 90 per dollar. For parents sending their children abroad for studies, it simply means that more INR is required to purchase dollars than before.
Back in 2017, you required Rs 64 to buy a dollar; in 2022, you needed Rs 80, and now in 2025, you need Rs 90, over 10% depreciation in the last three years.
INR-USD Conversion
When sending their children overseas for studies, Indian parents need to convert Indian Rupees into foreign currency. For example, Indian parents have to buy US dollars if they are sending their children to US universities. The university tuition fee, living expenses etc, all have to be paid in dollars.
One big fall-out of the conversion is that INR has traditionally weakened or depreciated against the dollar. 3 years back, the INR-USD exchange rate was at Rs 80. A US course costing $60,000 annually required Rs 48 lakh in 2022, but now costs Rs 54 lakh.
According to a study by ForeignAdmits, the average loan amount for a Master’s course in the US is Rs 40.6 lakh. Whether one pays INR from one’s own savings or takes an INR-backed education loan, the INR-USD exchange rate is at play. For a 3-year course, parents need to make provision for a 3-5% annualized depreciation in INR-USD exchange rate and plan for funds accordingly.
One may consider education loan options not only in INR but also in USD. The study found that 21% availed their financial assistance from international lenders (in US dollars).
“A better approach is to plan early and use a loan in the same currency as the degree. A USD loan protects students from currency swings and minimises the risk of repayment shock once they start earning abroad. It also offers stability for postgraduate students who often secure employment within the first few months after finishing their programme,” says Sonal Kapoor, Global Chief Business Officer at Prodigy Finance.
How to Plan
Historically, the Indian Rupee has weakened against the US dollar. Each year, the dollar strengthens against the Rupee by almost 3-5%. Therefore, as a parent, one needs to budget this INR-USD forex conversion rate, especially when your child is going for a 3-4 year course in the US.
Another way to hedge against this INR depreciation is to open a bank account in the US and keep it funded in advance. One other way to save on 3-5% depreciation cost is to hold US assets by buying US stocks from India.