Planning to Send Your Child Abroad for Studies? Here’s What You Should Know

Studying in a top-class foreign university has emerged as one of the best options for students who dream of global exposure and better job opportunities. However, the rising cost of living in many countries has become a challenge, especially for students already enrolled in their courses.

According to data from the Ministry of External Affairs, backed by inputs from various education institutions, about 1.8 million Indian students are studying abroad in 2025. This is a sharp rise from 1.3 million in 2023, showing the growing interest in international education.

But paying for education overseas can be expensive, and depending only on personal savings may not be enough. If not properly planned, you may need to take a big loan later to cover the costs.

Here are five key points to help you plan for your child's overseas education:

1. Know the Total Cost and Add It to Your Financial Plan

Calculating how much foreign education will cost isn't just about the tuition fee. You also need to factor in health insurance, learning materials, living expenses (like rent, food, and transport), and other personal costs.

For example, according to shiksha.com, one year of a two-year MBA at Harvard University could cost around Rs 68 lakh in tuition and fees alone. With all other costs added, the total may reach Rs 1 crore per year.

When estimating the amount needed, also monitor the exchange rate of the Indian Rupee against foreign currencies like the US Dollar. Even a small fluctuation can make a big difference in the overall expense.

2. Consider Inflation and Exchange Rates

When planning, don't forget to account for education inflation and the depreciation of the Indian rupee over time. Countries like the US, UK, Canada, and Australia are popular destinations, and their annual inflation in education costs can range from 2-4%, with the rupee likely to depreciate by 2-4% annually.

"You need to consider the costs of the most preferred countries which are the USA, Canada, UK, and Australia. Add 2-4% average inflation in these countries with 2-4% rupee depreciation against that currency, then you have to ensure the portfolio of your child's foreign education should grow by 10-11%," said Amit Kukreja, Founder of Wealthbeing Advisors.

3. Choose the Right Investment Tool

Saving for foreign education requires more than just a regular savings account or a single investment plan. You'll likely need to build a fund of at least Rs 75 lakh to Rs 1 crore.

To reach this goal, consider diversifying your investments, use a mix of mutual funds, bonds, and equity investments, based on your risk appetite and the number of years you have until your child goes abroad.

"Mutual fund investment in foreign funds is also a good option. Channelizing investment with an equity-based investment with the longest possible duration would give you the desired return,'' added Mr. Kukreja.

4. Start Saving Early

The earlier you start, the more time you have to grow your savings. A long investment period also helps reduce risk and gives better returns. Starting early also means smaller monthly investments can lead to a significant corpus over time.

5. Seek Professional Help

Even if you've done your research, created a budget, and chosen your investments, it's still wise to consult professionals. A financial advisor can help you build a more effective investment plan, and a study-abroad expert can guide you through country-specific costs, scholarships, and other essential aspects.

They can also help you understand your financing options, whether you should apply for a scholarship, opt for education loans, or use a combination of both.