At a Glance:
Repercussions of rupee devaluation.
Safeguarding yourself through dollar-denominated loans, scholarships, and fixed interest.
Structuring your study abroad plans according to market volatility and fluctuations.
Studying abroad could be a hard-to-achieve dream for students who do not belong to wealthy families. The goal becomes even harder to achieve, given factors like rupee devaluation and high inflation. The weakening of the Indian currency against the US Dollar can impact the students’ goal of pursuing their education abroad since the depreciation translates to an increased fee and cost of living.
Not getting a scholarship, lack of proper and timely financial planning, and being unable to arrange the needed finances can hamper their dream of pursuing higher education in international universities.
The fall in the Indian rupee value could have repercussions on the procurement of educational loans, further impacting the tuition fee and regular cost of living for students. Students could also face last-minute financial shortfall or crises when the rupee doesn’t cover the cost of American education.
One way to safeguard against these repercussions is to explore fixed interest rate loans to cover the cost of their education. This way, the students can enjoy the certainty that their interest payments would not be subject to market fluctuations and exchange rate changes, which minimizes the risk involved while making payments.
Another way around these repercussions is to opt for Dollar-denominated loans, i.e., loans that are incurred in Dollars. The benefit that the students can reap by doing this is that they can enjoy the assurance of having funds being made available to them when they need to be drawn upon. Regardless of the fluctuations in the exchange rates and currency volatility, funds are made available. On the other hand, students who opt for rupee-denominated loans can be affected by the fluctuations in the market, and currency depreciation can affect their capacity to afford international education.
Apart from the loans and economic point of view, students also can avail certain scholarships while pursuing international education to cut down the cost of their courses. Multiple types of scholarships are available for the students, based on different criteria and profiles. These scholarships can cover their entire tuition fee or sometimes part of it.
International students should consider the market volatility and fluctuations to hedge themselves against inflation. Plan ahead and evaluate the best alternatives, not letting anything hamper your stride!
Source - Financial Express
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