For many Indian families, sending children abroad for higher education has become one of the biggest financial decisions of their lives, with costs now rivaling the price of a home in major cities.

According to investment expert Saurabh Mukherjea, a complete undergraduate or postgraduate education in countries such as the US or UK can now cost around ₹2.5 crore. Despite the steep expense, a survey by HSBC found that nearly 90 per cent of Indian parents still aspire to send their children overseas for higher studies.

Parents turning to savings and loans

To fund these ambitions, many families are reportedly using 50 to 60 per cent of their retirement savings. Others are relying on education loans from non-banking financial companies, often at interest rates ranging between 12 and 14 per cent.

A Parliamentary Standing Committee report shows that outstanding education loans in India have increased from around ₹52,000 crore in 2014 to nearly ₹1.4 lakh crore today.

Why costs keep rising

Experts point to two major reasons behind the rising expense. The first is the steady depreciation of the Indian rupee against the US dollar. Mukherjea noted that the rupee has lost nearly 73 per cent of its value against the dollar since 1991.

The second factor is rising tuition fees. Universities in countries such as the US and UK have consistently increased fees by around 4 per cent annually, significantly raising the overall cost of education over time.

As a result, a foreign degree that costs ₹2.5 crore today could potentially cost close to ₹5 crore within the next decade if current trends continue.

Planning early can reduce the burden

Financial experts advise parents to start investing early to build an education corpus. Long-term investments in global equity markets, combined with SIPs and carefully planned education loans, can help families manage future costs without jeopardising retirement security.

They emphasise that disciplined investing over 15 to 20 years can significantly reduce the financial pressure associated with overseas education.