FALL IN RUPEE AFFECTING STUDENTS EDUCATION

JOEL ABRAHAM.T

The student community is the one which never comes into an issue while there is a
fluctuation of exchange rates. They are the ones who are attempting to secure loans
and reserve their education abroad and face the impact straight hard rather than the
bankers, business people and the investors. Foreign education is a dream of
numerous students from India.
Students who plan their higher studies abroad usually like to take education loans for
which the government has already made the process so easy. Now the students who
have taken loans are bearing the brunt. The education loan is usually in rupees, yet
as students pay their costs in a foreign cash, the expense of education and stay has
expanded. For $80,000, a person needed to pay Rs 35 lakh. Presently, he needs to
shell out Rs 42-45 lakh, contingent on the conversion scale.
The stressing component is for parents is the fall of the rupee since the most recent
40 days that was pivotal in their financial calendar.
The main set of students who will pick up from the rupee devaluation are those who
have recently finished their studies and are going to start reimbursing their loan. For
them, the devaluation of rupee means fewer dollars to be paid once again to the
bank. Lately, the government has guided banks to be more liberal in education loans
and this has assisted students. In spite of the fact that the loan rates are still higher,
there is a legitimate risk of getting loans for education abroad. This is a major
assistance.
The point when students strive for education in foreign nations for instance, the US
they pay charges and acquire liabilities in dollars. The point when the rupee goes
down, the measure in rupees would have been wise to pay in dollars is more.
There are two choices which the students can probably take one is request the
banks to for a further loan by getting an additional amount of Rs. 2 lakh which will be
an additional burden to the students but can help in proceeding with their studies.
The other is since the amount of hopefuls for foreign education from India is truly
high, RBI and the money ministry might as well work towards liking the rupee worth.
Additionally else, the enormous dream of Indian students seeking after their higher
education abroad will just remain an inaccessible dream. Now and then, the
explanations are sensible and consequently RBI initiates movement to restore the
rupee at a certain level. Here and there are structural purposes behind the slide. In
such cases, even RBI might not have much say.