Archive · 18 Jul 2025
Indian Families Face Rising Costs for Overseas Education
Indian families are expected to spend a lot more on their children's education abroad in the coming years.
A significant portion of this money is sent from India, but most families use traditional banks for these transfers.
These banks charge fees, and exchange rates, which costs families a lot of money.
While there is uncertainty regarding student visas to key destinations, alternative countries are gaining traction.
Indian families may spend $91 billion on foreign education in 2030, up from $44 billion in 2024.
Around a quarter of foreign education spending is transferred from India, with the rest from earnings.
Traditional banking channels handle over 95% of remittances, with 3-3.5% exchange rate markups.
In 2024, exchange rate markups and fees cost Indian families $200 million, or Rs 1,700 crore.
Student visas issued to Indians decreased by 38% year-on-year in the first nine months of 2024 in the US.
- Who
- Indian families with children studying abroad.
- What
- Indian families are facing significant costs due to exchange rate markups and fees on foreign education remittances.
- When
- Spending is projected for 2030 with data from 2024.
- Where
- Funds sent internationally for education.
- Why
- Due to high fees and exchange rate markups by traditional banks.
Traditional Banking System
Digital Payment Platforms
Fees and Speed
Traditional Banking System
Higher fees and markups on exchange rates
Digital Payment Platforms
Lower fees and faster transfers
- Projected Spending in 2030
- $91 billion
- Spending in 2024
- $44 billion
- Loss in 2024 due to Fees
- $200 million, or Rs 1,700 crore
- Percentage of remittances via traditional banks
- Over 95%
- Typical exchange markup by traditional banks
- 3-3.5%
- Drop in student visas from India to US
- 38%
