For years, the plan remained the same. Study hard. Get into a good college. Go to America. Or Canada. Come back successful, or do not come back at all. In countless Gujarati households, foreign education was not just an aspiration — it was a blueprint. That blueprint is being redrawn.
A decisive shift is underway among Gujarat’s foreign education aspirants. Europe is replacing the US and Canada as the preferred destination. And the numbers are beginning to show it.
Data from the 188th State Level Bankers’ Committee (SLBC) Gujarat report, highlighted by a section of the media, shows education loan disbursals have fallen sharply over the past two years.
From a peak of Rs 595 crore in the December 2023 quarter, disbursals dropped to Rs 459 crore in the corresponding 2024 quarter, before falling further to Rs 377 crore in 2025.
Fresh loan accounts tell the same story: dropping from 6,505 in December 2023 to 3,481 in December 2024, before a modest recovery to 4,081 in December 2025, still well below the 2023 high.
Bankers and foreign education consultants say the declining numbers are not a sign that fewer students want to study abroad. They point to something more structural. It’s a change in where students are going.
The US and Canada once accounted for nearly 60% of Gujarati students heading abroad, claims a report. That share has reduced considerably. Tighter visa regimes, uncertainty over post-study work opportunities, and rising costs pushed students to either put their foreign education plans on hold or look toward Europe and other destinations where costs are comparatively lower.
While the overall number of candidates going abroad reportedly declined 50-60%, the shift away from the US and Canada was a parallel and significant trend.
The cost arithmetic is stark. The average annual education cost in American and Canadian universities is around Rs 23 lakh. European universities, particularly in the UK and Germany, cost anywhere between Rs 3 lakh and Rs 15 lakh annually.
US, Canada no more India’s preferred choices
There are reasons why Indian students aren’t drawn to the allure of the US and Canada. As reports highlighted, visa scrutiny is influencing students’ choices.
Recent consultancy data reveals that many applicants never reached the visa interview stage due to a shortage of slots. Only those who completed applications by February or March were able to move ahead, while others dropped plans or deferred admissions.
Meanwhile, declining numbers in Indian student enrolment in Canada is largely driven by a mix of tighter immigration rules, rising financial pressures, strained diplomatic relations, tougher post-study work regulations, and heightened visa scrutiny.
Recent Canadian policy changes (caps on study permits and more stringent eligibility requirements) have made it significantly harder for Indian students to secure admission and remain in the country.
Students are doing that math and acting on it.
Why Germany makes greater sense
Furthermore, recent anti-immigration policies and uncertainty in Canada made those destinations uninviting. To some students, Germany made far more financial sense while also offering strong career opportunities.
The initial annual expense in Germany is reportedly around Rs 3.5 lakh. Europe has emerged as a wiser choice than the US or Canada that make students stink in debts.
Low-cost education is a major draw in Germany. The European Union offers stronger labour protections and a more stable living environment.
For years, STEM, management, and applied sciences programmes in the US and Canada drew the bulk of overseas aspirants from Gujarat. Stricter visa scrutiny, caps on post-study work opportunities, and rising geopolitical uncertainties have made those destinations more expensive and less predictable.
For many students, the dream of going abroad has not died. It has simply found a new address.
Also Read: 75% Drop in Canada-Bound Students As Immigration Policy Changes https://www.vibesofindia.com/75-drop-in-canada-bound-students-as-immigration-policy-changes/
