If you’re an Indian student considering studying abroad, you’re in good company. Each year, thousands embark on this journey, aiming for enhanced career opportunities and a promising future. However, let’s face it — this isn’t just about chasing a dream; it’s a significant financial undertaking. For many, families dip into their hard-earned savings, while others rely on student loans to cover hefty tuition fees and living costs. In 2024 alone, over 1.3 million Indian students pursued education overseas, with the US being a popular destination, despite its rising tuition fees.
The crucial question is: will this investment yield the desired returns? Evaluating the Return on Investment (ROI) in education is essential to ensure that this decision doesn’t result in unexpected financial burdens.
What ROI in Education Means and Why It’s Important
Return on Investment (ROI) in education isn’t just about comparing your post-graduation salary to the cost of earning your degree. It’s a more comprehensive evaluation of all the expenses involved and how they balance against the potential benefits to your long-term career and financial well-being.
Take the United States, for example—a top destination for Indian students, with over 3.3 lakh Indian students enrolled in American universities in 2024. While U.S. universities are renowned for their quality education, the costs are equally significant, especially for graduate programs.
Tuition fees for U.S. colleges range from ₹15 lakh to ₹60 lakh annually, excluding expenses for living, health insurance, and textbooks. According to the College Board, these fees have seen steady increases of 2-4% over the years. Whether such an expense is worth it ultimately depends on the ROI of the program you choose.
Transparency Challenges in Calculating ROI
One of the biggest hurdles for students is the lack of transparency from universities. While tuition fees and scholarships are often listed, critical information such as graduation rates, career trajectories, and expected salaries is either unavailable or difficult to access.
Many students struggle to get accurate insights into the total costs of their programs, including hidden fees or how well the program aligns with their career goals.
A study from Georgetown University’s Center on Education and the Workforce, Graduate Degrees: Risky and Unequal Paths to the Top, highlights the financial risks associated with higher education. The report reveals that over 41% of master’s degrees and 67% of professional degrees in the U.S. may not justify their costs in terms of ROI. This underscores the urgent need for greater transparency and accountability from educational institutions.
Calculating ROI: A Step-by-Step Guide for Indian Students
If you’re an Indian student considering education abroad, here’s how you can assess ROI to make a well-informed decision:
1. Understand the Total Cost
Start by calculating all expenses—tuition fees, living costs, travel, visa fees, healthcare, and even unforeseen expenses. If you’re taking a student loan, include the interest rate and repayment timeline to get a realistic picture of your financial commitment.
2. Account for Opportunity Costs
If you’re leaving a job to pursue higher education, consider the income you’re giving up. This lost earning potential should be part of your overall ROI calculation.
3. Research Career Outcomes and Starting Salaries
General university rankings won’t tell you everything. Investigate career outcomes specific to your field of study. For example, STEM graduates in the U.S. often earn higher starting salaries. According to Georgetown University, professionals with a bachelor’s degree in architecture or engineering have median lifetime earnings of $3.8 million—higher than the median for all master’s degree holders. However, salaries vary significantly by sector and region, so research thoroughly.
4. Evaluate Post-Graduation Work Opportunities
Many countries, including the U.S., offer post-graduation work visas. International students on an F-1 visa, for instance, are eligible for a 12-month Optional Practical Training (OPT) period, with a 24-month extension for STEM fields. These opportunities can significantly impact your ability to work and earn abroad, directly affecting ROI.
5. Assess Support Systems and Graduation Rates
If you’re a first-generation college student studying abroad, you’ll need a strong support system. Look into the university’s graduation rates and alumni success stories to gauge how well they help students achieve their goals.
6. Consider Long-Term Career Benefits
Studying abroad offers more than just academic knowledge—it provides exposure to diverse cultures, valuable international networks, and unique experiences. While these aspects may not be immediately quantifiable, they often play a crucial role in long-term career success.
Making Your Investment Count
While studying abroad can unlock incredible opportunities, it’s not without challenges. To ensure the benefits outweigh the costs, take the time to research your options. Look for solid data on graduation rates, career outcomes, and alumni achievements before making a decision.
Remember, education is not just an investment in your career—it’s an investment in your future. By carefully evaluating ROI, you can make studying abroad a reality while minimizing financial risks.
