Indian students eye Ivy League universities despite rupee depreciation

The depreciation of rupee is unlikely to result in a drop in the number of Indian students seeking admissions to the most prestigious global colleges across the world. The best institutes are betting that an increase in financial aid for foreign students will increase the number of applications, including from India, this year. Cut-throat competition for admission to Indian universities is expected to further boost the number of students opting to study abroad rather than battle it out in the home country.

Foreign Universities Upbeat

"The University of Pennsylvania has continued to witness growth in applicant pool over the past many years, despite the steady devaluation of the rupee.”

Ron Ozio, Media Relations Director, University of Pennsylvania

The college received 465 applications from India last year, the highest in the college's history and although admissions for this year have not started, a drop in number of applications is not expected. "I don't see much evidence of students "settling"- the spaces in Indian universities continue to be extremely limited and highly competitive, and American colleges and universities continue to be regarded as most sought alternative," added the official in an email response to ET.

"The need and perceived benefit of a foreign degree is so high that the rupee depreciation will not matter even if the dollar touches Rs 100.”

Narayanan Ramaswamy, KPMG head for education.

Getting into a Harvard or Wharton will continue to remain an Indian dream. Factors like a having to shell out few extra lakhs or even tough visa regulations do not matter, he added.

Last year, the cut-off marks for admissions to top Indian institutes were 100 % for some courses, which forced many to head westwards. In the UK, Cambridge University has spotted a 7 % increase in graduate applications from India in the last 5 years.

"Undergraduate applications have increased every year for the last decade. Exchange rates are only one variable influencing application patterns.”

Sheila Kiggins, communications officer - education and access, Office of External Affairs and Communications, University of Cambridge.

Money Matters

“The increase in demand of education loans for foreign universities grows at 18-20 % every year and this year too it is expected to remain the same. The rupee depreciation will not have any impact on those who wish to go abroad for the top colleges. If there is any change, it will be for those who want to go to the second and third-rung institutes abroad because of the tougher visa regulations. Costs become insignificant to the potential of return a foreign degree can provide."

SP Singh, GM, Punjab National Bank.

Some of the reasons that propel Indian students to seek foreign education are:

·         Increase in financial aid to foreign students at top universities abroad

·         The perceived benefit for students of foreign education remains high

·         Stiff competition in India for admission to top Institutes

What’s on offer?

·         University of Pennsylvania: Funds specially allotted for Indian students despite a 3% increase in fee to $58000

·         Harvard University: Families with normal assets making $65000 or less annually will pay nothing for their student’s tuition, room, board and fees.

·         Darmouth College: No tuition fee for students from families with total income of less than $100000

·         Princeton University: Increase in aid budget for 2012-13 to $116 m. So average net cost today is lower than it was in 2001, even after adjusting for inflation.