Massive drop in Indian students choosing US for higher education as visa woes and costs bite

Europe is the new frontier for Indian students seeking global education.

In the last two years, there has been a drastic 63 percent fall in the number of Indian students choosing US for higher education - once the top destination – data from education loan provider GyanDhan has shown, with European nations emerging as the new, preferred choice.

Based on the internal data between 2023 to 2025, US’ share has plummeted from 54 percent in 2023 to just 20 percent in Fall of 2025, signalling a massive shift in study-abroad preferences.

US Education Losing Appeal

Ankit Mehra, Co-founder & CEO of GyanDhan said the trend can be attributed to visa-related uncertainties, rising costs and unclear post-study work opportunities.

“Rapid policy shifts and visa delays have become the single biggest factor,” Mehra said.

Recent H-1B visa fee hikes and reviews of Optional Practical Training (OPT) policies have further deterred students, pushing them toward alternative destinations. “Students are making pragmatic, RoI-driven choices, looking beyond traditional destinations,” according to GyanDhan.

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Europe’s Rise

The data highlighted a significant pivot toward Europe, as Germany, Ireland, and France saw substantial increase in interest from Indian students. Germany appealed to students for its low tuition fees and clear post-study work policies, with its share more than doubling from 4 percent in 2023 to 9 percent in 2025. Ireland, with a 1.5x surge - from 3 percent to 7.6 percent – seemed to be gaining traction for its tech and finance ecosystems, hosting giants like Google and Microsoft and offering up to two years of post-study work rights. The UK too saw a 143 percent rise to capture 39 percent of Indian students exploring to study abroad in 2025. Conversely, Canada’s share dropped sharply from 11 percent to 2.33 percent, while Australia remained steady at 7 percent.

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Factors At Play

Affordability, job prospects and policy-related clarity have emerged as the key decision drivers for Indian student heading abroad for higher education. Countries like Germany, Ireland, Japan and South Korea are capitalizing on this by offering student-friendly visa regimes and employment-linked education models. “Students are no longer chasing a dream, they’re investing in their future,” GyanDhan’s Ankit Mehra added.

The US and Canada risk losing further ground said the expert, unless they address visa and post-study work concerns. However, for now, Europe is the new frontier for Indian students heading overseas for higher education.