CKRAVI Posted August 24, 2015 Report Posted August 24, 2015 Be prepared to pay more if travelling abroad or if your child is studying there. Other impacts can be varied. if your child is studying in a foreign university, don’t be surprised if tuition fees increase substantially over last year. There are also some advantages of a falling rupee.Those working abroad will gain, as the same amount they remit will translate into more rupees. “It looks like the rupee will be in the 64-65 range (to the dollar). As the rupee tends to be overvalued and exports are not growing much, the Reserve Bank might be willing to let the rupee depreciate,” says Madan Sabnavis, chief economist, CARE Ratings.The immediate impact will be on foreign travel and students studying abroad.The indirect impact will be on other expenses, too, as oil prices will go up and this could push up prices of other commodities. However, this time, as the price of crude oil in the international market is low, there might not be much of an impact on domestic oil prices, says Sabnavis. Below is a look at some ways a weaker rupee will impact your life and what you can do about it. Foreign education Students studying abroad also suffer when the rupee falls. The US, Britain, Canada, Singapore and Australia are popular countries for Indian students. The university will not offer any leeway in tuition fees. Students will have to pay the entire amount. In most cases, you will have to pay before a term starts. Given the high tuition fees in foreign universities and the cost of living, most students take some loan and pay for the rest by scholarships or taking a part-time job. “When the rupee falls, it becomes difficult for the entire family, not only the student. “And, not many individuals know how to hedge themselves against currency fluctuations by using derivative products. “What you can do is try and pay the entire fee upfront when the exchange rate is low. Most universities give a discount of one or two per cent if you do so,” says Naveen Chopra, of The Chopras, a foreign educational consultancy. Neeraj Saxena, chief executive, Avanse, a non-banking financial company that gives education loans, says there is an option to enhance the loan amount during the course. “We don't usually disburse the full loan amount at one go. “We do as per the semester. “So, if the fees increase in the third semester, we can increase the loan amount,” he advises. Saxena suggest students going abroad should look for scholarships or part-time jobs like teaching assistantships.
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