Indian Students' Overseas Education Spending Plummets to Five-Year Low Amid Visa Restrictions 2025

Indian student spending on overseas education has hit a dramatic low in the past five years, due to the significant change in education patterns and immigration regulations globally. This sudden decline is changing the way Indian families are investing in overseas education.

Sharp Decline in Student Remittances

In June 2025, student remittances to foreign education were at an all-time low of only $138.8 million in India. This is almost half the average of the last five years at 314 million. This fall is even more pronounced compared to the high of $718 million, which was achieved in September 2021.

The Times of India's statistics show a worrying trend that has surprised education experts and financial institutions. Even amid this drop in education purchasing power, travel spending is well above the 5-year average of over $1 billion.

Also Read: Why Study in Australia? Latest Updated Guide

Key Destinations Face Different Fates

Here’s how different key destinations were impacted differently by this:

United States and Canada: Major Losers

It has had the most significant effect in traditional stronghold destinations. Stringent visa restrictions and policy changes have reduced US student remittances by almost 30 per cent compared to the year before. Canada has also witnessed a decline in the number of Indian students coming.

Hariprasad MP, the Executive Director and Business Head at Ebix World Money, confirms: We are recording a 10-15% decline in student remittance, mainly because of the US and Canada.

UK: The Clear Winner

Unlike other trends on a downward trend, the UK has become the largest recipient of Indian students. This change is a fundamental shift in student preferences, which is motivated by several factors:

• More secure visa regulations than other destinations.

• Shorter course durations

• Graduate Route visa opportunities

• Recent India-UK Free Trade Agreement benefits

Country-Wise Student Remittance Trends (June 2025)

Here are the country-wise remittance trends based on June 2025:

Impact of Stricter Visa Policies

Some of the most popular destinations to study have adopted stricter visa and enrolment requirements in 2025:

• Australia: Restrictions on student numbers and geography-specific visa rejections

• Canada: more stringent immigration policies towards student inflows.

• United States: Background checks and visa charges were raised.

• United Kingdom: kept its policies relatively stable when others tightened.

The impact of new US visa regulations has been quite significant, as additional fees like a $250 visa integrity fee and mandatory social media vetting have been introduced.

Economic Factors Driving the Decline

Here’s why economic factors have been driving this decline:

Currency Depreciation Effects

The depreciation of the Indian rupee against the major currencies has raised the cost of overseas education to a very high level. Currency expert Sudarshan Motwani writes: "A small change can make the annual cost of students so high that budgeting becomes a nightmare.

Rising Education Costs

The average student loan balances have grown significantly, and approved ticket sizes have grown by Rs 28.8 lakhs in FY22 to Rs 33.1 lakhs in FY24. This 15 per cent growth indicates the increasing financial load on Indian families.

Study Destination Preference Shifts (2025)

Here’s how study destination preferences have shifted because of this:

Also Read: Why Indian Students Go Abroad to Study?

Financial Services Response

There have been mixed trends among education loan providers. Total disbursements have increased, but average amounts reflect higher costs, not more students. Avanse Financial Services showed an increase in loan disbursement of Rs 4,712.80 crore in FY24 compared to Rs 1,551.25 crore in FY22.

Market Correction or Long-term Shift?

The experts in the industry debate whether this is a mere adjustment in the market in the short run or a permanent change in the mobility of Indian students. Maria Mathai of MM Advisory Services terms it as a market adjustment instead of an exit, and observes that the student population is being pragmatic as costs are moving and visa regulations are changing.

Popular Course Trends in the UK

As the UK becomes a more popular destination, some courses are becoming popular with Indian students:

• Artificial Intelligence and Machine Learning

• Business Analytics and Data Science

• Environmental Science

• Healthcare programs (Nursing, Pharmacy, Medicine)

• Logistics and Supply Chain Management

Regional Impact Analysis

Here’s a table showing how different regions have been impacted:

Future Outlook and Predictions

These spending patterns on studying abroad also indicate the radical restructuring of the world education market. Experts predict:

• Continued preference for visa-friendly destinations

• Greater emphasis on payoff.

• Growth in alternative education models

• Rise of regional study hubs

According to the British Council, key study destinations will virtually inevitably experience decreasing Indian enrollment, and those countries whose policies remain stable, such as the UK, will keep gaining market share.

This shift in consumption patterns is accompanied by larger changes in the Indian student/family calculus of investment in foreign studies, where stability and work opportunities become more important than the old prestige ranking.

Also Read: What Exams Are Required to Study Abroad?

Conclusion

The fact that the outlay on studying abroad has hit the lowest point in five years is a turning point in patterns in Indian overseas education. With the restrictive policies taking their toll on the traditional destinations, new entrants like the UK are proving that student-friendly policies and post-graduation pathways matter.

This change is set to continue defining trends in education markets across the globe as students look into places that provide quality education and reliable immigration opportunities. Contact TerraTern for more information!