Amid stricter international student policies in the US and other developed countries, Indians have significantly reduced the money they send abroad for their children’s education.
RBI data shows outward remittances for education under the Liberalised Remittance Scheme (LRS) in January–June 2025 totaled $1.16 billion.
Indians Slash Overseas Education Remittances as Student Visa Rules Tighten Globally
This was 22% lower than last year and the lowest first-half figure in seven years, since 2018 when $1.06 billion was sent abroad.
Although a larger share of remittances usually occurs in the second half of the year due to admission cycles, the January–June period is still substantial, averaging 45% of yearly transfers over the last five years.
In June 2025, only $139 million was sent abroad under LRS — the lowest monthly figure since April 2020 during the COVID-hit months.
Under LRS, Indian residents can remit up to $250,000 per financial year for purposes such as travel, education, medical treatment, and foreign investments.
The decline comes as countries like the US, Canada, the UK, and Australia tighten visa and admission rules for international students.
Canada has more than doubled the minimum living expense requirement to 22,895 Canadian dollars starting September 1.
Australia increased its minimum IELTS score last year for certain categories of international students.
In the US, the Department of Homeland Security recently proposed ending the ‘duration of status’ system, which allowed students to stay as long as they were enrolled full-time.
US Proposal Seeks Four-Year Cap on International Student Stays
Under the new proposal, stays would be capped at four years, after which students must apply for an extension of stay.
This follows a legal battle earlier in the year between the Trump administration and Harvard University, where Harvard was temporarily barred from enrolling international students until a restraining order was issued.
Crisil’s Malvika Bhotika says Indians are shifting from the US to Germany and domestic colleges, slowing education loan growth. Bank loans rose 14% vs 20% last year, while NBFC growth may halve to 25%. The US share in NBFC loan portfolios fell to 50% and is expected to drop further.
