The great study abroad shift: Indians rethink the American dream
Indian students are reconsidering US study dreams and exploring alternative study abroad options.
By Sanjana BAishwarya Kumar
Updated - August 29, 2025 at 09:11 PM.
Rising visa refusals, deportation scares and soaring costs are making many students to rethink
For years, the US has been the ultimate dream for Indian students. But that dream is getting complicated.
Rising visa refusals, deportation scares and soaring costs are making many students rethink.
Shreya (name changed), a 25-year-old heading to Spain for her master’s in Sports Marketing, told, “The tension between the nations and the hate towards Indian students in the US is scary. I didn’t want to get caught in the crossfire. And let’s not forget the expense.”
Plan B destinations on the rise
Shreya is not alone. More Indian students are now considering “Plan B” study abroad options as the US tightens visa norms. A recent ruling has restricted the duration foreign students, professors and physicians can stay in the country without additional vetting.
Varun Singh, MD, XIPHIAS Immigration, explained, “The US still hosts a record number of international students, but consular refusals for F-1 visas have climbed sharply.”
According to US State Department data, global F-1 refusal rates touched 41 per cent in FY24 - up from 36 per cent in 2023 and just 15 per cent in 2014, the highest ever. Despite India becoming the top source of international students in 2023/24, F-1 issuances to Indians dropped 34 per cent, from 130,839 in FY23 to 86,110 in FY24.
Where students are going instead
The uncertainty has opened doors for other countries. “Although the US remains a leading study destination, students are spreading their options. Canada, France, the UK, New Zealand and Germany are getting popular for quicker visa processing, a friendly environment, affordable education, and rewarding post-study work opportunities,” shared Mamta Shekhawat, Founder, Gradding.com, a study abroad platform.
The UK issued 98,014 study visas to Indians in the year ending June 2025, nearly a quarter of all UK study visas, despite recent dependency rule changes. Germany, meanwhile, has seen a surge, with 59,419 Indian enrolments in Winter 2024/25, making India its largest source country.
Canada still attracts over 3 lakh Indians, though new caps on study permits and higher proof-of-funds have slowed approvals. Australia has tightened rules with its new “Genuine Student (GS)” test and shorter post-study work durations, tempering growth, as per XIPHIAS Immigration data.
Cost as a big driver
Money is another big driver. Although the US sets the standard for academic excellence, it remains the most expensive option for foreign students when combining tuition (ranging $25,000–$60,000 annually). By contrast, Canada and Australia are moderately priced, with tuition closer to $20,000–$35,000, and offer transparent pathways along with post-study work options. Germany stands out with free state universities and affordable living costs.
“Studying abroad has always been a huge investment, and the US sits at the top end of that scale,” said Sonal Kapoor, Global Chief Business Officer at Prodigy Finance.
Despite the hurdles, the US hasn’t lost its shine. Indian students still flock there for its reputation, cutting-edge research, and the optional practical training (OPT) programme, especially the STEM-OPT extension, which offers career-building opportunities.
But long-term prospects remain a concern. “Ambiguity around the H-1B visa and higher rejection rates make students apprehensive about stability. In contrast, Canada and the UK offer clearer residency pathways,” said Shekhawat.
Aman Singh, Co-Founder of GradRight, framed it differently, “US policies are meant to attract high-calibre international students. Those with weaker academic or professional credentials, often applying to lower-tier universities or hoping to ‘figure it out’ after arrival, are the ones facing greater difficulties.”
For now, the US remains aspirational. But as costs climb and policies tighten, Indian students are diversifying their bets, choosing destinations where the path feels less uncertain, and the dream, more achievable.
Published on August 29, 2025
