The United States continues to attract Indian students, but the decision to study there is increasingly being weighed against its financial costs and long-term returns. Active Indian student records in the country fell 13.5 per cent year-on-year to 316,893 in October 2026, down from 366,258 a year earlier, according to the US Department of Homeland Security's Student and Exchange Visitor Information System (SEVIS).

The decline was particularly sharp at the master's level, where Indian student records dropped 20.1 per cent, from 292,929 to 234,034. In contrast, doctoral student records increased 45.9 per cent, from 28,609 to 41,729 during the same period.

The overall number of international student records in the US also declined 7.1 per cent, from 1,283,240 in October 2025 to 1,192,572 in October 2026. India, however, remained the largest source country, ahead of China, which recorded a 10.2 per cent decline to 220,157.

The figures count active SEVIS records at a given point and include graduates on Optional Practical Training (OPT), not just newly admitted students.

FUNDING AND AFFORDABILITY SHAPE STUDY CHOICES

The contrasting trends suggest that students are becoming more selective about the programmes they pursue, with affordability, funding opportunities and career outcomes playing a bigger role in their decisions.

Saurabh Arora, Founder and CEO of University Living, said rising tuition fees, living expenses and uncertainty around post-study employment opportunities were making students and families more cautious about the financial commitment of studying abroad.

“One factor that could be contributing to the interest in doctoral programmes is their funding structure,” he said.

Unlike several self-funded master's programmes, PhD candidates at US universities can access tuition waivers, research assistantships and stipends. These opportunities can significantly reduce the financial burden, particularly in areas such as artificial intelligence, engineering, biotechnology and advanced sciences.

Arora said students were increasingly looking beyond university rankings to assess funding opportunities, total education costs and realistic career prospects. He added that understanding expenses beyond tuition, including accommodation, food and transportation, was becoming essential to making study-abroad decisions.

AMERICAN DREAM NOW COMES WITH A PRICE CHECK

Sagar Bahadur, Senior Vice President – Strategic Partnerships and Growth at Manifest Global, said Indian students were not necessarily giving up on the US but were questioning whether the financial investment was worth it.

“Indian students are not giving up on the American dream. They are asking whether the American dream is still worth the price tag,” he said.

He pointed out that a funded PhD with a stipend and research opportunities presents a very different financial proposition from a master's degree that could leave families carrying years of debt.

According to Bahadur, prestigious universities and globally recognised qualifications may no longer be enough to convince families to make substantial financial commitments without clarity on what they can expect in return.

However, Ritu Sharma, Senior Director-South Asia at Acumen, Part of Sannam S4 Group, said the decline should not be interpreted as a loss of interest in American higher education.

She said, "The US continues to be a preferred destination for Indian students, given the academic quality of its institutions, globally recognised qualifications, strong research ecosystems and access to diverse academic and professional opportunities," adding that the rise in doctoral records indicated that Indian students remained interested in its research opportunities, even as their programme choices evolved.

STUDENTS ALSO EXPLORE OTHER DESTINATIONS

The changing preferences are also encouraging students to consider alternatives such as Ireland, particularly for research-led education, as per Suneet Singh Kochar, CEO of Fateh Education.

He said, "Ireland has developed a strong research and innovation ecosystem, particularly across STEM disciplines such as artificial intelligence, life sciences, healthcare and advanced technology."

Its research centres encourage collaboration between academia and industry, while funded doctoral opportunities can make research-based education more financially viable.

He said, "For Indian students, the decision is no longer simply about choosing a country or qualification, but about identifying a pathway that offers academic depth, relevant expertise and sustainable long-term returns on their investment."

For US universities, the challenge may increasingly be to demonstrate not just academic prestige, but also affordability, funding support and clearer pathways to careers.

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