When inflation drives up the cost of education
Like many other citizens, students are not spared from the inflationary crisis. This crisis is responsible for the rising cost of education. This crisis itself is (partly) due to geopolitical factors. The consequences of the pandemic continue to burden governments, albeit to varying degrees. The war in Ukraine continues to take its toll on economies, starting, of course, with the Ukrainian economy.In July, year-on-year inflation was 2.05% in the United Arab Emirates, 3.2% in the United States, 3.3% in Canada, Israel and Japan, 4.3% in France and 4.5% in Singapore. Inflation continues to undermine the economies of Kenya (+7.3%), Germany (+6.17%) and Sweden (+9.3%). In Algeria, the inflation rate is approaching 10%. In Hungary, it's close to 20%. In Turkey, it is approaching 50%.
Accustomed to living with staggering inflation, Argentina has a rate of 113%. Lebanon is sinking deeper into crisis with record inflation of +252%. Many other countries are still experiencing inflation to varying degrees. The world is going up in flames, and governments are trying to calm things down.
The effects of inflation can be felt at the market, the supermarket, the gas station, the doctor's office, the subway, the bus, the train, the hairdresser, the bookstore, the greengrocer, and even at home. Students, whose purchasing power is often lower than that of other populations, are particularly vulnerable to this long-term crisis.
Cost of education: Where to move for studies?
What if inflation were a criterion for choosing a school or university abroad? A recent study by Neobank N26 ranks the USA as the most expensive country for students. An academic year costs an average of 27,091 euros, with large variations depending on the university, level and field of study. The United Arab Emirates comes in second (average cost of a year at university: 12,535 euros). England is in third place (average of 11,405 euros). Canada, another popular destination for international students, is 7th (9176 euros). Germany, also a favorite, has a much more competitive average cost (average 499 euros - 39th).
Is studying in a country with a lower cost of living a good deal?
Before you decide whether you'll study abroad or not, let's take a closer look at student costs. First of all, the N26 study only takes into account tuition fees for local citizens, the quality of universities, affordability and the salaries that young graduates can expect to earn when ranking countries—nothing about the cost of rent, transportation, health care, food, and so on.
Expensive tuition fees
Tuition fees are also on the rise, and even more for international students (who pay much higher fees than locals). These increases are partly due to inflation but also to government policies. Australian universities, for example, continue to raise tuition fees for international students (between 2% and 4%, depending on the university).
International students are a real windfall for governments. Between 2021 and 2022, 21% of UK university income came from international student fees. China, too, is jumping on the bandwagon, announcing fee increases while asserting that it remains far more competitive than other major student countries. France is also raising its fees. On the one hand, school grants for French families living abroad are being cut (although the most vulnerable families will be spared). The French government is also raising tuition fees for international students but has indicated that it will increase grants for the most disadvantaged foreign students while acknowledging that only 5.5% of them currently benefit from a grant.
However, France justifies the increase in tuition fees as necessary to "improve the integration" of these international students. It also points out that the United States does not discourage international students with its exorbitant tuition fees. In fact, the country remains a firm favorite among them.
Cost of living and quality of life
What about quality of life? Does it become a luxury when the primary motivation for moving abroad is to study at a low cost? According to the N26 study, Prague, Tokyo and Amsterdam are the 3 cities with the best quality of life for students. The study compared the cost of rent, food, transportation and other student expenses. It also took into account safety, nightlife and culture. Madrid was ranked 4th, ahead of Reykjavik, Berlin and Edinburgh. N26's ranking of cities by quality of life has nothing to do with the cost of studying. But European cities rank at the top of the list, with only Singapore being the non-European city at the 15th spot. Then comes the first American city, New York, at the 29th spot. New York is one of the most expensive cities for expatriates overall.
Of course, the most privileged international students will continue attending their chosen schools. Others will take on more debt than before to pursue their goals. Still, others will be put on hold because of insufficient financial resources. Unsurprisingly, the global economic crisis is hitting vulnerable students the hardest.
Other non-quantifiable criteria also play a role in the choice of study country. Will we stay in a country that isn't suitable but offers lower tuition fees? Attachment with the host country should not be underestimated either. A new life abroad is best experienced in a country that you value. Language, neighborhood and environment all play a role in the quality of life for international students.
