The past two years have been a rollercoaster for international students, full of uncertainty about the future amid the Covid pandemic and the looming global economic recession.

Asian students, especially from China and India, make up more than 50% of international students in the United States.

However, the ongoing Russo-Ukrainian war and the devaluation of the rupee have increased the burden faced by Indian students.

This is because tuition fees automatically increase as the cost of living increases. U.S. inflation is currently about 8.6%, the highest since the early 1980s, according to the Bureau of Labor Statistics. This hit the pockets of foreign students hard.

According to studyinternational.com, some U.S. universities have raised tuition after holding firm throughout the pandemic. For example, Seattle University and Syracuse University raised tuition by 3.75% and 4.5%, respectively.

The looming recession in the US and its impact on international students?

1. Study will become expensive

The threat of a recession causes tuition to rise due to the accumulation of student loan debt. Even if colleges or universities choose not to raise fees, quality higher education costs will still be higher. For example, a sharp increase in inflation may cause employers to cut wages or lay off workers across the country. Students who depend on their parents to pay off loans or finance their education may struggle due to reduced income.

According to a Forbes report, tuition for a four-year undergraduate program at Harvard University rose from $82,178 in 2021-2022 to $84,413 ( 69,46,151) in 2022-2023 for Indian students.

The estimated annual cost for an Indian student at MIT has increased from $77,020 for the 2021-2022 academic year to $79,850 for the 2022-23 academic year.

2. High cost of living

Inflation will directly increase the cost of living, and it may be harder for students to achieve their dream of studying in America.

In the US, tuition fees for international students are usually higher compared to American students. This, in addition to the increased cost of groceries and rent, will require international students to spend more.

3. Labor crisis

Slowing economic growth has also caused a hiring freeze. Major tech companies like Google and Microsoft have temporarily suspended hiring.

Adding to the above problems, the Reserve Bank of India has recently raised interest rates on education loans. For Indian students studying abroad, higher loans mean higher EMIs with less stability in the job market.

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