RBI: Indians Spend $1B on Study Abroad in 2025, Lowest Since 2017

(INDIA) Indians sent an estimated $1 billion for study abroad expenses between April and August 2025, the lowest outflow for this five-month stretch since 2017, according to fresh Reserve Bank of India (RBI) data. The period-over-period slide amounts to a 22% decline compared with April–August 2024, underscoring how tougher student visa rules in major destinations have cooled demand and delayed plans for many families.

The RBI data groups tuition, living costs, and admission fees under education remittances. While India’s middle-class appetite for overseas degrees remains strong, the numbers show that stricter entry rules in the United States, Canada, Australia, and to some extent the UK, have squeezed the pipeline. Analysts say remittances track both the ability to secure visas and the timing of admissions. This year, both have worked against parents and students who typically make large payments during late spring and summer.

Officials and consultants point to country-specific factors. The United States has seen year-on-year education remittances drop by nearly 30% as visa curbs and processing hurdles pinched. Canada raised proof-of-funds requirements, raising the upfront cash burden. Australia tightened English language criteria, which pushed some students into delay or deferral. The UK, however, has held up better than expected and even gained share, partly offsetting losses from North America.

The compression was stark in June 2025, when education remittances fell to $138.8 million, the lowest monthly figure since April 2020, when the pandemic shut borders and froze travel. That single month signaled how sharply the student finance calendar can shift when embassies limit interview slots, new rules arrive mid-cycle, or families struggle to meet higher bank statements for proof-of-funds.

RBI’s Liberalised Remittance Scheme remains unchanged at a ceiling of $250,000 per financial year per resident for education and other permitted uses. But actual money sent is what matters for universities and landlords abroad, and the outflow has slowed. According to analysis by VisaVerge.com, the remittance trend lines now reflect not only policy changes overseas but also a degree of caution among Indian households facing higher borrowing costs and currency swings when committing to two- or three-year degrees.

Visa policy shifts push down remittances

Several data points help explain the pullback. Industry trackers estimate the number of Indian students going abroad fell by about 15% in 2024 versus 2023, sliding from roughly 893,000 to 759,000. Fewer departures mean fewer tuition wires and lower living expense transfers, which show up in RBI’s aggregates. At the same time, fewer dependent family members are moving with students, reducing combined cost footprints.

Key country impacts:
– United States: Advisors cite tighter vetting and longer waits, with year-on-year US student remittances down nearly 30% in the April–August window. Applicants must still complete the online nonimmigrant visa application DS-160. For readers preparing for interviews, the official form is available here: DS-160. Completion of the DS-160 is a core step for F-1 visa seekers, and delays at this stage can cascade into late payments to universities.

• Canada: The higher proof-of-funds threshold raised the cash bar, forcing families to show more savings before visas. Some families who had planned to pay full first-year fees in one shot split payments or postponed until winter intake.

• Australia: Tougher English requirements added extra test attempts and prep time, slowing offer acceptances and fee deadlines.

• United Kingdom: Despite modest policy tightening, the UK has grown more popular this year, partially cushioning the slide elsewhere. Agents report quicker decisions and clearer timelines, which help students plan payments.

June’s low point also lines up with reports from student loan providers that disbursals were delayed while applicants waited for visa clarity. When issuance slows, parents hold back on remitting large sums to avoid the risk of deferral or refund complications.

Important: When embassies limit interview slots, or introduce rules mid-cycle, the timing of remittances can shift sharply — and that timing matters to universities and housing providers abroad.

Family budgets, trade-offs, and common responses

Over the past decade, Indian families have sent a cumulative Rs 1.76 lakh crore (about $22 billion) for overseas education—an amount often compared to the cost of building dozens of new Indian Institutes of Technology. That scale shows how deeply the study-abroad path is woven into Indian household plans. When the outflow dips, it’s rarely about appetite alone; it reflects stress along the entire pathway from offer letter to visa stamp to dorm check-in.

Common parental responses this cycle:
1. Shifting from expensive North American programs to the UK or continental Europe (including Germany), where public universities and lower living costs can reduce total spend.
2. Deferring intake by one semester to buy time for visa processing and to assemble updated bank statements that meet new thresholds.
3. Paying partial fees instead of full-year amounts upfront to limit exposure if visas face last-minute issues.
4. Reconsidering domestic programs with strong placement records, especially in engineering, data, and healthcare.

Analysts’ expectation is cautious: unless major destinations ease rules or improve processing speed, the remittance slowdown could persist into the next admission cycle. That picture fits with reports of longer document checklists and tighter financial scrutiny across several consulates.

Older cohorts who already secured visas appear less affected, since their payments follow a known schedule. The sharper pain is felt by new applicants juggling admission deadlines with uncertain interview dates. One missed step can break the chain — without a visa, tuition sits unpaid; without paid tuition, housing cannot be booked; without housing, travel plans stall.

Practical advice for applicants and families

• For US interviews: pay careful attention to the DS-160 and supporting financial evidence. The DS-160 remains a critical step and potential bottleneck: DS-160.
• For Canada and Australia: review updated proof-of-funds and English test score requirements before locking in fee transfers.
• Keep forex budgets flexible to handle rate swings that can amplify tuition bills when the rupee weakens.
• Consider applying to a wider range of countries and securing early visa appointments to hedge timing risks.
• Use partial payments or staggered fee plans where possible to limit exposure to visa delays.

Note: The RBI’s LRS limit of $250,000 per resident per financial year remains ample for most degree tracks, but the current bottleneck is policy friction abroad — not the availability of remittance channels at home.

What the RBI numbers imply

The RBI figures do not capture every cost — airfare or incidental spending may fall under different categories — but they offer a timely pulse. When education remittances fall to $1 billion during the April–August window and hit a June low of $138.8 million, the message is straightforward: policy changes abroad are reshaping when, where, and how Indian households fund overseas degrees. The 22% year-on-year drop is the clearest sign yet of that shift.

India’s students will keep chasing global campuses, but this year’s data shows the path has narrowed. Whether the outflow rebounds in the next cycle will depend far more on consular desks in Washington, Ottawa, Canberra, and London than on demand in Mumbai, Hyderabad, or Kochi. For now, the UK stands out as a rare bright spot, while many families pause, recalculate, and wait for a clearer runway.