Rs 1,700 cr lost in exchange: How Indian families are bleeding money on foreign education- Report

Indian families paid a steep hidden cost in 2024 while funding their children’s education abroad, ₹1,700 crore ($200 million) lost to exchange rate markups and bank fees, according to a new study by Redseer Strategy Consultants and global cross-border payments platform Wise. With international education spending set to double by 2030, the findings highlight how routine remittances through traditional banks are silently eating into household budgets, as reported by the Times of India.

The report shows that over 95% of student remittances, estimated at ₹85,000 to ₹93,500 crore ($10–11 billion) annually, are processed through conventional banking systems. These typically impose 3–3.5% exchange markups and take 2–5 days to complete transfers. That translates to significant losses for families: a household sending ₹30 lakh a year could lose up to ₹75,000, enough to cover several months of rent or tuition support abroad.

“Indian students deserve payments that keep up with their ambitions, not one that slows them down,” said Taneia Bhardwaj, South Asia Expansion Lead at Wise. “Waiting five days for a transfer or unexpected fees aren't just frustrating, they can disrupt critical moments in their lives.”

Wise, which uses a digital-first model to bypass traditional cross-border systems, reported that education-related remittances now make up 75% of its outbound transfers from India. Nearly 70% of these transfers are completed within 12 hours, with mid-market rates and no markup, the company said.

Losses bigger than just monetary loss 

The losses aren’t just financial; they impact decision-making and disrupt academic life, the report warns. “For parents who are making big sacrifices to support their children’s dreams, being hit with hidden fees in the form of exchange rate markups is both frustrating and unfair,” Bhardwaj added.

India’s global education footprint is growing fast. The report notes that Indians now form 30–35% of international students in countries like the US, UK, Canada, Australia, and Germany. In 2024, India surpassed China to become the largest source of international students in the US, up from just 11% a decade ago.

For families planning to send children abroad, the study urges closer attention to remittance strategies. Comparing services, factoring in exchange losses, and choosing transparent platforms can help avoid unnecessary expenses and ensure that every rupee reaches where it matters most.