HYDERABAD: Studying abroad is likely to get expensive by a whopping Rs 4 lakh compared to last year, thanks to the continuous slide of Rupee against the US Dollar. The Indian currency hit an all-time low of Rs 70.08 against the dollar -- a difference of whopping Rs 5 compared to last year. Students aspiring or currently studying abroad have been affected by this trend.
Students in Telugu States, who have a penchant for going abroad to pursue sciences courses, are severely impacted. “My son is pursuing his fourth year of engineering in Bengaluru. We had plans to send him to the US for further studies and even applied for a loan from the SBI. The fee is about Rs 60 lakh. We had planned to arrange Rs 25 lakh while taking a loan for rest of the amount,” says city-based Hemalatha.
“However, with the Rupee crashing, we now have to manage an additional amount of Rs 10 lakh. It’s a very stressful situation,” she adds. Experts say that over 50 per cent of students going abroad for education take loans. The entire process is financially very intensive. First, the student has to pay Rs 12,600 toward taking IELTS and Rs 14,000 to take GRE.
Apart from this, they have a visa application charge that goes up to Rs 11,000 and a SEVIS fee, that is paid to the Homeland Security Department of the USA, that comes up to 22 dollars. So, totally, a student has to pay up to Rs 1 lakh rupees even before getting entry into a college abroad. A student pursuing MS in the US spends on an average Rs 10-14 lakh; those studying graduations spend Rs 16-30 lakh.
“Since the Rs 5 fall in exchange rate, many parents are forced to reassess their finances. Even today, we had discussions with some parents on ways to obtain more loans or even look for cheaper colleges abroad,” says Sanjeev Rai, CEO of Hyderabad Overseas Consultant. He says it’s not just USA, students in Australia and Canada will be equally affected. One Canadian dollar equals Rs 53.42 and one Australian dollar is equal to Rs 50.67.
Adding to the pain, it’s time for these students to pay their fall semester fee. “It’s not a good feeling to know you are in debt. It’s even more stressful that despite the debt we are now feeling the crunch. Just three months ago, when I had to pay my summer fee, the Rupee crashed and I decided to wait till it regains. After waiting for 1.5 months there was no improvement, and my late payment fee kept mounting. So we paid it somehow with an additional $50 for late payment,” says Akruti Saxena who studies in Texas.
‘DEPRECIATION BRINGS MARGINAL BENEFIT TO IT SECTOR’
The IT sector of the State, which saw Rs 92,422 crore in exports during 2017-’18, will see additional revenue in the coming quarter, industry insiders opine. “A certain marginal benefit would come with the rupee fall to the IT industry. Considering the major players who are into IT exports, they would gain out of this scenario. It will not have a windfall effect but can have a positive impact in the short run,” observed Ravi Rao, Secretary, Hyderabad Software Employees Association (HYSEA). Explaining further, Rao said, “35-40 per cent of costs on human capital is spent on rupees and when realised it would be a benefit. Usually, the receivables that the companies get are for two-three months at a time. Whenever the dollar appreciates, the conversion rate will deposit a surplus cash inflow for major tech companies.” Meanwhile, techies can be the major gainers of the rupee fall as the reimbursement claims for travel expenses can fetch higher returns
