Indian students are increasingly mortgaging their futures to finance overseas education, with one in three now relying on loans to pursue their study-abroad dreams, according to the findings of the Transnational Education (TNE) Report 2024-25, released on Thursday, by upGrad Study Abroad.

“Indian students today are far more intentional about their education choices — driven by geopolitical awareness, cost consciousness, and the realities of stricter visa regimes and uncertain post-study pathways,” said Praneet Singh, associate vice president, university partnerships, upGrad Study Abroad.

The report, which is based on a survey of more than 100,000 aspirants, shows that debt has become the single-largest funding source, with 33% taking education loans, another 28% depending on scholarships, and the rest relying on self-funding or parental support.

Nearly three-quarters of aspirants work with budgets of up to ₹30 lakh–40% in the ₹10–20 lakh range and 34% in the ₹20–30 lakh bracket — the report said. The rest are willing to spend more than ₹30 lakh.

The enrolled cohort this year is skewing away from big cities. As much as 57% are from tier 2 and 3 towns, even though roughly two-thirds of aspirants still list metro cities as their origin. That mismatch — high dreams seeded in metros, rising enrolments from smaller towns with typically lower household incomes — could help explain the growing reliance on loans.

The financial logic is also reshaping destinations. With students prioritising rapid return on investment, Germany has surged in popularity — its share of Indian students rose to 32.6% in 2024–25 from about 13% in 2022 — while traditional favourites such as the US and Canada have seen slowing growth. “The traditional ‘Big Four’ destinations are no longer the default. Instead, Europe, the Middle East, and APAC are emerging as smarter, future-ready alternatives,” Singh said.

Language is no longer seen as a barrier by Indian students, who once gravitated toward Anglophone countries. The emergence of France, Finland and Germany as study abroad destinations bears testament to the fact.

India’s outbound students used to come mostly from CBSE or ICSE schools; that’s no longer the case. In FY24, over half (56%) of all aspirants were from state board schools.

The motivations have also shifted. Only 16.6% now cite permanent residency as their primary goal, compared with nearly half (48.2%) who say they are chasing better jobs. Career-first consciousness is also reshaping course choices, with 86.5% preferring master’s degrees, and management programmes, from 30% to 56% in the past three years.