Rising visa rejections force Indian students to rethink study-abroad plans

2025 has been challenging for Indian students pursuing overseas education, with visa rejection rates rising sharply due to stricter compliance checks.

According to estimates shared by Jainesh Sinha, COO and co-founder of education finance platform GyanDhan, the rejection rate for F-1 student visas for Indian applicants to the US rose to nearly 27% between March and May 2025.(AI generated image)

The year 2025 has emerged as a turning point for Indian students planning to study abroad, with tighter visa regimes across key destinations making the process more uncertain and demanding.

Early signals came from the United States, where policy announcements raised questions about the country’s openness to international students. Similar moves followed in other popular destinations such as Australia and Canada. Together, these developments point to a phase of heightened scrutiny, driven by domestic concerns around illegal immigration, housing shortages and labour market pressures.

According to estimates shared by Jainesh Sinha, COO and co-founder of education finance platform GyanDhan, the rejection rate for F-1 student visas for Indian applicants to the US rose to nearly 27% between March and May 2025. In Canada, rejection rates for the August 2025 intake reportedly touched close to 74%, marking one of the strictest phases in the country’s international education policy cycle.

“These numbers reflect a far more selective and documentation-intensive visa process,” Sinha said, adding that applicants are now being assessed not just on academic merit but also on financial credibility and post-study intent.

Why rejection rates are rising

The surge in visa refusals is largely linked to compliance-related issues. Authorities across countries have flagged fake or unverifiable offer letters, insufficient or inconsistent financial documentation, and weak proof of intent to return to the home country after completing studies.

At the same time, several countries have imposed caps on international student intake. With application volumes remaining high, scrutiny has intensified to filter out non-genuine or poorly prepared cases, making even minor documentation errors costly.

Rejection now carries a financial cost

Sinha notes that the consequences of visa rejection in 2025 extend well beyond academics, creating significant financial exposure for families. Reapplying has become more complex, as students are required to explain earlier rejections and justify a fresh attempt—often even when applying to a different country.

If finances were cited as the reason for rejection, students must reorganise fund documents, revalidate sources and ensure consistency across submissions. In many cases, repeated visa setbacks force families to explore alternative destinations or cancel admissions altogether.

Each failed attempt can result in a financial exposure of Rs. 3–10 lakh, once application fees, university deposits, foreign exchange costs, documentation expenses and education loan interest are factored in, Sinha said.

What has changed in visa policies

Students now need to track country-specific policy changes more closely than ever. Australia, for instance, has raised the minimum savings requirement for student visa applicants to AU$29,710 (around Rs. 18 lakh), equivalent to 75% of the national minimum wage—nearly 17% higher than earlier thresholds.

In the US, scrutiny has expanded beyond academic credentials to include funding sources, social media activity and clarity of post-study plans. Applicants are expected to clearly demonstrate how their chosen programme aligns with long-term career goals.

Canada has tightened compliance checks further, with financial documents and fund sources being closely examined and verified before approvals are granted.

Impact on education loans

Tighter visa norms have not entirely dampened interest in overseas education. Education loan disbursals for international studies fell by around 8% in the last quarter, even as the number of loan applications increased. This suggests students are delaying plans or exploring alternative destinations rather than abandoning their aspirations altogether.

What students must do differently

Experts say preparation and consistency are now critical. Academic records must be complete, translated where required, and aligned with claims made in the Statement of Purpose. Financial documents should clearly outline fund sources, income proofs and loan details.

“If an education loan is involved, students should be clear about post-study EMIs and realistic India-based job roles that can support repayment,” Sinha said.

Equally important is demonstrating genuine intent to study. During interviews, students may be asked to explain post-study plans that include India—through career progression, financial commitments or family ties. Even minor inconsistencies across documents or public information, including social media profiles, can now result in outright rejection.

Looking beyond traditional destinations

While the US, UK and Australia continue to attract Indian students, over-dependence on a single destination has become risky. Students are increasingly being advised to keep at least one alternative option, if not as a backup then as a primary plan.

There is growing interest in several European and Asia-Pacific countries, where visa processing is more predictable and education costs remain relatively controlled.

The road ahead

The rise in visa rejections signals a deeper shift in how global education pathways need to be planned. As Sinha points out, strong documentation, financial clarity and destination diversification are no longer optional. Starting early, staying informed and remaining flexible will be key for students aiming to study abroad in 2026.

(Based on inputs from Jainesh Sinha, COO and co-founder of education finance platform GyanDhan.)