- The threat of recession in the US is resulting in a hike in tuition fees due to this student loan debt piling up
The last two years have been a roller-coaster ride for international students, fraught with uncertainties about the future amid the Covid pandemic and looming global economic recession.
Asian students-especially China and India, make up more than 50% of the international student population in the United States.
However, the ongoing Russia-Ukraine war and rupee depreciation have added to the burden faced by Indian students.
This is because the tuition fee has automatically increased along with the rising cost of living. At present, the inflation in the US is around 8.6%–higher since the early 1980s, as per the Bureau of Labor Statistics. This has put a deep impact on the pockets of overseas students.
According studyinternational.com, some of the US universities have raised the tuition fee cost after holding out throughout the pandemic. For example, Seattle University and Syracuse University have raised their tuition fees by 3.75% and 4.5% respectively.
The looming US recession and its effect on international students?
Table of Contents
1. Studies will become expensive
The threat of recession is resulting in a hike in tuition fees due to this student loan debt piling up. Even if colleges or universities have chosen not to increase fees, the qualitative costs of higher education will still be higher. For example, spiking inflation may lead to employers lowering salaries or reducing their staff nationwide. Students depending on their parents to repay loans or fund their education may struggle due to income cuts.
According to a report by Forbes, the fee for a four-year undergraduate programme at Harvard University has gone from $82,178 in 2021-22 to $84,413 ( ₹69,46,151) in 2022-23 for Indian students.
The estimated annual cost for an Indian student at the Massachusetts Institute of Technology (MIT) has gone up from $77,020 for the academic year 2021-22 to $79,850 for 2022-23.
2. High cost of living
Inflation will directly spike the cost of living and chasing the dream to study in America could be harder for students.
In the US, the cost of tuition fees for international students is typically higher compared to American students. This, on top of the increase in groceries and rent, will require international students to spend more money.
3. Job crisis
The economic slowdown has also caused a freeze in hiring. Big tech companies like Google and Microsoft have temporarily announced a pause in recruitment.
In addition to the above issues, the Reserve Bank of India recently hiked interest rates on education loans. For Indian students, studying abroad, larger loans mean larger EMIs with lesser stability in the job market.
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