This comes at a time when a global employment squeeze is prompting many graduates to return to India without securing work abroad, leaving them to repay loans that are now costlier than they had budgeted for in rupee terms.

The Indian rupee’s (INR) slide past 90 per US dollar will hit students at various stages of their study-abroad journey, with their overall costs jumping sharply, said Victor Senapaty, founder of Westbridge Capital-backed education financier Propelld.

“The same hundred thousand dollars suddenly becomes much more expensive in rupee terms,” Senapaty said.

After breaching the 90-per-dollar mark on Wednesday, the rupee slipped further to an all-time low of 90.56 on Thursday before pulling back to close at 89.98. The domestic currency settled at 89.94 on Friday.

The average ticket size for a loan from a non-bank lender for studying in the US is ₹40 lakh. An average loan size at a bank is similar, although there is a provision to avail higher loans.

A four-year undergraduate degree could cost as high as $55,000-$100,000 a year for certain Ivy League institutions.

Senapaty said Indian students will now have to work harder for outcomes. “The entire thing hinges on one question: do you get a job or not? If yes, great. If not, it becomes an all-or-nothing game.”

The development also comes at a time when a large batch of students prepare to head abroad in February to join universities this spring.

Typically, fall (August-September) and spring (February-March) are when the largest batch of students depart for higher studies. Most of 2025 was a flip-flop as the US government increased its scrutiny of visa approvals.

Double whammy

Tensions between several US universities and the government have unnerved many parents in India and this led to a 25-50% drop in applications for loans to study in the US in the first half of the year. The result was that many deferred their course by a semester, while others opted for destinations such as the UK, Canada, and Australia.

A weaker rupee will add to their troubles, as well as for those who have graduated and returned to their hometowns while still searching for a job.

“The rupee breaching the 90 mark is not a ‘no-go’ for students who have plans of studying abroad, but those who are repaying loans taken in dollars will face the pressure,” said Ankit Mehra, co-founder and chief executive officer of GyanDhan, an NBFC that focuses on loans for overseas education.

“This is especially for the batch of 2022-2023, many of whom have graduated and are working from India. Their loan payment would have started and now they have to repay a higher than factored amount.”

Sonal Kapoor, global chief business officer of Prodigy Finance, an international student lender, said currently, “students who are taking loans in rupee may need to reconsider their options”.

They may eventually earn in US dollar. “The initial stages of their journey can be confusing and some may end up taking a larger loan than they expected just to manage daily living expenses abroad. The first few months can feel confusing simply because the numbers keep shifting with the exchange rate,” Kapoor said.

Students have the option to take dollar loans when they are confident of earning abroad. “The depreciation of the INR can actually be beneficial for international students, especially those who are working, as it offers significant financial relief since they earn in dollars. Their families will receive more money in INR as a result,” she added.

However, Senapaty of Propelld cautioned that it could be a risky choice without possibility of definite employment in the US. “If they don’t get a job and return to India, they’re in trouble because they’re earning in INR but repaying in USD while the rupee keeps weakening. That’s the worst combo.”

According to data provided by the government in Parliament in March, 750,000 Indians were studying abroad in 2022. That number shot up to 892,000 in 2023, but dipped to 759,000 in 2024 in the wake of geopolitical crises and visa curbs.