US student visa policy: The impact of visa tightening is clearly visible on educational remittances. During the fall admissions season, which began in August, outward remittances for study abroad declined by 23%, from $416 million to $319 million.
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US student visa policy: The impact of the US’s tightening of student visa policies isn’t limited to students. Its impact is also being felt in the education loan sector. According to RBI data, a significant decline has been recorded in outward remittances sent for foreign studies. Yash Patel of Ahmedabad dreamed of earning a degree from a leading US university. But Yash has now given up on all these dreams. The US has tightened student visa rules, and thousands of students like Yash have little hope of getting an opportunity to study in the US for the next two years. Yash Patel said, “Now I’m preparing to go to study not in the US, but in another country. Going to the US doesn’t seem possible anymore.”
Foreign education loans to decline by 30 to 50 percent by 2025
The impact of visa restrictions is clearly visible on remittances for studies. During the fall admission season starting in August, outward remittances for studies abroad declined by 23% from $416 million to $319 million. Whereas, during the spring admission season starting in January, outward remittances fell by 18% from $449 million to $368 million. This includes students’ tuition fees as well as expenses like boarding and lodging. Education loan companies and NBFCs say that foreign education loans have declined by 30 to 50% in 2025.
Nearly 60% decline in US-related education volumes
Ankit Mehra, CEO & Co-Founder, GyanDhan, said, “Education volumes related to the US have declined by about 60%. Due to the ongoing uncertainty in the US, our partners expect further declines in the next fall season.”
Students are moving from America to countries like UK, France, Germany and Eastern Europe
Although students are now turning away from the US to countries like the UK, France, Germany, and Eastern Europe, industry experts say that the volume from American universities used to be the largest, and it’s difficult to replace it from other countries. New education loan disbursements are likely to remain sluggish for the next one to two years.
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