Europe as a Preferrence for Indian Students; US sees 30% drop in 2025

• Indian student interest in Europe surged in 2025, while the US and Canada saw sharp declines.

• US-bound Indian students fell nearly 30% amid stricter visas and higher costs.

• EU destinations recorded 62% growth, led by Germany, Italy, and France.

• Better return on investment, lower fees, and student-friendly policies drive Europe’s appeal.

  
  

Europe has seen a marked rise in the number of Indian students choosing it for higher education in 2025, even as traditional destinations such as the United States and Canada record a decline. Education consultants and industry data point to tighter visa regimes, escalating tuition costs, and higher living expenses in North America as key reasons behind this shift.

Insights drawn from study-abroad platforms, student housing providers, and education finance companies indicate that the flow of Indian students to the US dropped by nearly 30% in 2025 compared to the previous year. In contrast, countries across the European Union experienced strong growth in student interest and enrolments.

Leverage Edu, an education technology company, reported a 62% year-on-year increase in Indian students opting for EU nations. Germany, Italy, France, Ireland, Spain, Malta, and the Netherlands have emerged as leading choices. Akshay Chaturvedi, founder and CEO of Leverage Edu, noted that Germany alone has almost doubled its intake year-on-year, while Italy and France have seen growth multiples ranging between five and seven times.

Industry observers believe the recently signed India–EU trade agreement could further accelerate this momentum by creating a more favorable environment for mobility and cooperation.

Similar patterns are visible in education financing data. GyanDhan, a platform focused on education loans and overseas study, reported a 45% decline in loan applications for studies in the US and a 34% drop for Canada. In contrast, demand for loans to pursue education in mainland European countries such as Germany and Italy rose between 30% and 90% year-on-year, according to Ankit Mehra, founder of GyanDhan.

Experts attribute the changing preferences to uncertainty around post-study work visas, rising tuition fees, and the overall cost of living in North America. Mehra emphasized that return on investment has become a decisive factor for families, with Europe offering a more attractive balance between costs and outcomes.

Public universities across several EU countries charge relatively low fees, offer shorter degree programs, and are located in regions with comparatively affordable living costs. Additionally, nations such as Germany and Italy have rolled out policies designed to attract international students, including extended job-search visas after graduation, flexible work permissions during studies, and clearer pathways to long-term residence and employment within the European Union.

While the US is expected to remain under pressure due to increased visa scrutiny and ambiguity around post-study work options, some institutions continue to draw global interest. Harvard University, for instance, recorded its highest share of international students in over 20 years during the fall 2025 intake.

Looking ahead, Mehra estimates that Indian student movement to EU countries could expand by 25% to 35% over the next year if current trends persist. Mayank Maheshwari, co-founder and COO of University Living, echoed this outlook, noting that policy stability and long-term value are central to destination choices. Based on platform data and findings from University Living’s Europe Student Landscape Report, he projects growth of 10% to 15% in Indian enrolments across EU destinations in 2026.

The India–EU trade pact is widely viewed as a positive signal, potentially simplifying processes for Indians seeking to study and work in Europe, according to Adarsh Khandelwal, co-founder of Collegify.

Official figures reinforce these trends. Data from the US Department of State shows that F-1 visas issued to Indian students fell by 44% in the first half of 2025 compared to the same period in 2024. Historically, the US has enrolled over 300,000 Indian students annually, while the EU hosted more than 100,000 Indian students last year—numbers that now appear poised to shift further in Europe’s favor.