Defer studies because of fall of Indian rupee against USD

[grohan]

Hello everyone,

I would like to ask a question that is boggling in the minds of every Indian student aspiring to study in the US. Our Indian rupee is taking a heavy beating against the USD and because of this the cost of studying in USA including the tuition is going to be a very costly affair.

 

So, my question is, IS IT BETTER TO DEFER THE STUDIES TO NEXT YEAR OR SO , hoping that the price of rupee will recover or IS IT BETTER TO CONTINUE THE PLANS , and finish off the studies before it's value drops even more ?????

 

any answer will help me in making a better decision ..

 

Thank you...

[Guest |||]

I don't think anyone here is going to be more invested in this question as you, so assuming there arent currency experts on board...

[grohan]

I don't think they have to currency experts ..... What they would have done in such a situation will be rather helpful , i guess.......

[DeeD]

It really depends.

 

On one hand the falling rupee won't make "much" of a difference if you get aid. Of course, living expenses will increase. If you do not have aid, you're paying a s***load anyway and (obviously) hoping to recover it after your degree.

 

On the other hand, if getting the degree isn't urgent and you feel comfortable putting it off for a while, that would be easier on your pocket. You can choose to work for a year, earn some cash and expereince and pray it doesn't become 1USD = Rs. 200000000 which is as sane a plan as any.

 

As for me, I've decided to cash in my chips and pray that I get a job/TA there. ( But that's cause I want to go this year )

 

Since you want a yes/no answer, this forum can't help. We're all a bunch of really confused kids (perhaps a few confused parents thrown into the mix). I guess the best guy to ask would be Chidambaram, but I doubt he has any idea either. :/

[MikKar]

How about not studying in schools that cost a ****load of money ? Are there cheaper schools but still reasonably competitive schools that match your research interests ? You could even choose to go to schools in Europe or countries other than the USA where the Rupee is not taking such a heavy beating. If that's a viable option, of course.

[zapster]

With 1 year forwards recently trading at or over 70, it seems unlikely that the Rupee will stabilise or return to levels much higher than what it is currently trading at (c. 65) over the short to medium term. Technical analysis has suggested that after touching 70 (or 75, 80?) it may appreciate a bit and stabilise in the 63-65 range.

 

But we all know that all these predictions can easily be thrown for a toss within a few days.

 

My point is that it is unlikely that a year later your Rupee prospects would look significantly better (at best it is completely unpredictable!), so your options are more in terms of a. Go ahead this year, it is unlikely that you will significantly benefit from the exchange rate by waiting or b. Work for one year, see if you can save a bit and then apply. I would probably make this decision independent of the exchange rate trend.

Edited August 23, 2013 by zapster