The recent decision by the US State Department to halt funding for Fulbright and other scholarships has severely impacted Indian students. This move has not only taken away financial support but also restricted academic exposure for talented individuals with limited means.
Study abroad consultants have voiced concerns over the sudden suspension, citing that many scholars are now stranded mid-course without support.

Personal Stories of Impact
Shreya Mudgil, a 2019 Fulbright scholar, credits the scholarship for her personal and professional growth. Pursuing an MPhil in English from Kurukshetra University, she spent a year at the University of Michigan, Ann Arbor. The exposure transformed her, ultimately leading her to a successful marketing career at Conosh, a food startup.
Stories like Shreya’s highlight the profound impact scholarships like Fulbright have on students’ lives, beyond just academic advancement.
Non-STEM and Policy Students Hit Hard
While STEM (science, technology, engineering, and mathematics) students face a significant setback due to the lack of access to US research labs, non-STEM and policy students are particularly vulnerable. The Nehru-Fulbright Master’s program has been discontinued, further limiting opportunities.
Gilman Program recipients, often from economically disadvantaged backgrounds, have also been disproportionately affected. Without alternative funding, many students now face the possibility of abandoning their studies.
Rising Loan Dependency and Uncertainty
With scholarships no longer available, students are turning to education loans. Nikhil Jain, founder of ForeignAdmits, estimates a 15% rise in loan inquiries. Private scholarships and university grants are seeing increased demand, but lack the capacity to fill the funding gap.
The abrupt suspension has created a state of panic, with students unsure of how to finance their education or continue their programs.
Long-Term Consequences
Beyond individual hardship, the funding freeze threatens the long-standing academic collaboration between India and the US. With over 350 Indian scholars benefiting from Fulbright annually, this decision could weaken cultural and academic ties.
“It’s not just a scholarship cut; it’s a hit to America’s soft power and innovation edge,” said Jain.
A Call for Indian Institutions to Step Up
Adarsh Khandelwal, cofounder of Collegify, believes this is a wake-up call for Indian institutions. He urges Indian universities to strengthen their research infrastructure, expand scholarships, and create industry partnerships to retain talent.
“With uncertainty clouding the American academic landscape, Indian institutions have a rare opportunity to lead,” he said.
Conclusion
The US scholarship freeze has left many Indian students at a crossroads. While some may find alternative funding sources, others may be forced to abandon their dreams. Moving forward, both governments and institutions must explore ways to mitigate the impact and ensure academic opportunities remain accessible to deserving scholars.