GyanDhan, a fintech specializing in education loans, in its latest report reveals a major shift in the preferences of Indian students studying abroad. The number of students opting for the United States has dropped by 63% in the last two years according to the report. Once the top destination, the US is witnessing a sharp decline as Europe rises as the preferred region for higher education.
“In the past few years, we have witnessed a sea change in student preferences. While changing aspirations and access to financing play a part, rapid policy shifts and visa uncertainties have emerged as the single biggest factor,” said Ankit Mehra, Co-founder & CEO, GyanDhan.
The Decline of the USA
The United States, which long dominated as the number one global education destination, has seen its share fall from 54% in 2023 to just 20% in Fall 2025, a staggering 63% decline.
The reasons include visa delays, rising costs, and uncertainty around post-study work and immigration pathways. Recent H-1B visa fee hikes and OPT policy reviews have further intensified these concerns.
| Year | Number of GyanDhan students going to the US (%) |
| 2023 | 54 % |
| 2024 | 26 % |
| Fall 2025 | 20 % |
“At GyanDhan, we are noticing a lot of students defer their plans of going to the US or opt for alternative destinations due to these uncertainties,” Mehra added. “Students are making pragmatic, ROI-driven choices. They are willing to look beyond traditional destinations and choose countries that offer clear pathways to work and stability.”
Europe’s Rise
Countries such as Germany, Ireland, and France are seeing a notable increase in student interest. While the UK and Australia continue to attract students, Canada has seen a sharp decline, with only 2% of GyanDhan students choosing to go there in September 2025.
| Country | 2023 (%) | 2025 (%) | Increase/Decrease |
| UK | 16 % | 39 % | 143 % |
| Canada | 11 % | 2.33 % | -78 % |
| Australia | 7 % | 7 % | No Change |
| Germany | 4 % | 9 % | 125 % |
| Ireland | 3 % | 7.6 % | 153 % |
Germany has emerged as a strong destination for STEM aspirants, owing to low tuition and clear post-study work policies. Ireland, meanwhile, is gaining momentum for its tech and finance ecosystems, housing global employers like Google, Meta, Apple, and Microsoft.
“Ireland offers up to two years of post-study work rights and strong opportunities across IT, finance and medtech,” Mehra said.
The new decision drivers
Affordability, job opportunities, policy clarity, and return on investment have become key priorities. Students today are taking more informed and pragmatic decisions, exploring multiple destinations before committing. Governments across Europe and Asia, including Germany, Ireland, Japan, and South Korea, are attracting Indian students through friendlier visa regimes and employment-linked education models.
The trend is clear- European destinations are now leading interest for Indian students. Future shifts will depend on how US and Canadian policies evolve.
One thing is clear- students are no longer chasing a dream, they are investing in the future.
Source: Based on GyanDhan internal student data (2023–2025).
