Indian students use of short-term borrowing to fund their studies.
The repercussions of demonetization in India has hit hard at the students seeking higher studies in the US, says the latest data released by the Student Exchange Visitor Program.
Indian and Chinese students occupy the majority of international admissions in the US Universities and till November 2016 more than 202,000 students from India have joined American Universities, only next to China that sent over 314,000 students to the US for pursuing higher studies.
Student Exchange Visitor Program undertaken by the U.S. Immigration and Customs Enforcement (ICE) found that since the Government of India’s demonetization policy, there has been a negative shift in this sector as the number of students seeking admissions abroad has drastically reduced.
The sudden decrease in the number of Indian students seeking higher studies in American Universities has given the US education sector a double blow as the slowdown in China has had a negative impact on enrollment of Chinese students, which they though can be compensated by Indian students.
Even though the target of the Government of India when it announced the demonetization policy was to hit the people who had stacked black money earned through illegal sources, stop the circulation of fake currencies, and take India to a cashless economy, it seems like its tremors have much wider implications. One of the key reasons for demonetization affecting students is that Indian students largely depended on liquid cash that they usually borrowed for a short-term for funding their studies abroad.
This caused problems for Indian students as they are required to show the proof of available fund that can cover their living expense and first-year tuition.
Students are usually asked to show the proof of funds that range from US$ 30,000 to US$ 70,000 before they get the visa approval. Many aspiring Indian students made use of short-term borrowing for visa approvals and education abroad.
Another major setback for the US Education sector is the uncertainty over the policies of the next government that will take charge on January 20. Another factor is the fast-approaching deadlines set by many institutions, most of them have a deadline from November to February.
Taking all this into consideration, the demonetization will have its effect on the willingness and ability of Indian students to enroll in foreign universities and the influence could be varying levels of education, says Student Exchange Visitor Program
According to the statistics, 80% of all Indian students who go to the US for higher studies enroll in the master’s level and this has been the strategy followed by the Indian students to minimize the cost and maximize their career prospect in the US.