Rupee at ₹96/$: Is Your Foreign Degree Worth

A weaker rupee, rising tuition fees, stricter visas, and tight job markets abroad have made foreign education loans riskier than ever. Before taking a ₹50–80 lakh loan at 12%, you need to do the math honestly.

Here's what happened: The rupee has weakened significantly against the dollar, making US and UK tuition fees 15–20% more expensive in rupee terms compared to just 3 years ago.. Education loan interest rates from banks and NBFCs currently range from 10.5% to 14%, meaning a ₹60 lakh loan costs over ₹1 crore in total repayments over 10 years.. Post-study work visa restrictions in the UK, US, and Canada have tightened, reducing the window for graduates to earn abroad and repay loans before returning to India..

What you should do: Calculate your break-even: divide total loan repayment cost (principal + interest) by the realistic starting salary in your target country — if payback takes over 7 years, reconsider.. Compare domestic alternatives before signing: IIMs, ISB, BITS, and NIT postgraduate programs cost ₹5–20 lakh and deliver comparable ROI for most non-niche careers.. If you proceed, choose a secured education loan (property collateral) from SBI or Bank of Baroda — rates are 1–2% lower than unsecured loans, saving ₹8–12 lakh over the loan tenure..

Under Section 80E, you can claim a tax deduction on the entire interest paid on education loans — no upper limit — for up to 8 years. On a ₹60 lakh loan, this saves ₹2–3 lakh in tax over the repayment period.