How rupee movements affect overseas education costs & remittance decisions

Currency movements play a growing role in shaping overseas education costs for Indian students and remittance decisions by non-resident Indians (NRIs), as exchange-rate volatility factors into cross-border financial planning.

Education advisers say fluctuations in therupee against major global currencies

directly affect the rupee value of tuition fees and living expenses, even when universities maintain stable fee structures.

Sanjay Laul, Founder of MSM Unify, said currency swings during 2025 raised the effective cost of studying abroad for Indian families.

“Tuition fees and most living expenses are paid in foreign currency. When the rupee weakens, the same costs translate into a higher rupee outlay,” Laul said.

He added that accommodation, transport, insurance, and daily expenses tend to track inflation in host countries, further increasing financial pressure.

Laul said visa-related proof-of-funds requirements also expose students to currency risk. Countries such as the UK and Canada require applicants to demonstrate sufficient funds in foreign currency to cover tuition and living costs.

“Even if governments do not change the nominal requirement, a weaker rupee means students must show higher balances in rupee terms,” he said.

While currency depreciation raises outbound education costs, it can support inward remittance flows.

Ritu Kant Ojha, a Dubai-based real estate strategist advising HNIs on portfolio diversification, said a weaker rupee increases the purchasing power of overseas earnings in India.

“When the rupee depreciates, Indian assets become relatively cheaper in foreign currency terms,” Ojha said. She added that this has encouraged some NRIs to reassess the timing of remittances and advance transfers to lock in exchange-rate advantages.

According to Ojha, households receiving remittances are directing the additional rupee value toward loan prepayments and asset purchases rather than consumption. “The exchange-rate benefit is often used to reduce debt or fund property investments, helping households strengthen their balance sheets,” she said.

Global economic agencies have projected continued uncertainty and slower growth through 2026, a backdrop that analysts say could sustain currency volatility. Advisers across education and wealth management say this environment is prompting families to factor exchange-rate risk more prominently into financial decisions.

“Currency movements are no longer a secondary consideration,” Laul said. “They now influence affordability, timing, and long-term planning for overseas education.”