Three weeks back, Jeff Bezos warned US residents to "hold onto your money" and advised people not to buy any big appliances like TVs or refrigerators this season as an economic recession might just creep in.
As per reports, the United States (US) has been facing a recession since the summer of June 2022. This directly has an impact on the world, yes, but also on Indian students who are pursuing their education in the US and those who are planning or aspire to study there. According to the U.S. Embassy of India, almost 200,000 Indian students are pursuing higher students in the US in the academic year 2021-22. A tweet shared by them on November 14 read, "Excited to share that almost 200,000 Indian students chose the United States as their higher education destination in the 2021-22 academic year, a 19% increase over the previous year. #StudyInTheUS #OpenDoorsReport #OpenForOpportunity #IEW2022 https://opendoorsdata.org"
But does this mean students will have to hold on to their horses and make changes in their plans when it comes to studying in the United States? EdexLive decided to find out from the students and education experts.
While a few students have loans to clear, others are in a conundrum as they are dependent on their families or helping their families financially. Besides the financial matter, new freshers who landed in the US in the fall are feeling the pinch of the recession, ever so slightly, and are a bit stressed.
So what's the impact?
Considering the onset of the 2022 recession, when EdexLive spoke to experts and Indian students abroad, they shared that the hike in the price of commodities, increase in tuition fees, difficulty in cost of living, accommodation rentals and the trouble in finding jobs for fresh graduates are few of their concerns.
Sheethal Dongari from Georgia State University shares that she met a few of her seniors, "who appeared to be already feeling the consequences of the recession due to the lack of job opportunities. Even those who are already employed seem to have trouble being allocated to new projects." Adding to this, Deepika Lingineni from the University of Texas, Arlington says, "The job market is too bad."
Manideep Jammigumpula from the University of New Haven, Connecticut is of the same opinion as he shared that, "Right now, the job market has become slow but the talk is it's going to pick up in February."
Signs of recession
On one hand, Deepika shares that it doesn't appear like her university is already bearing the brunt of the recession, on the other hand, Krushi Teja Reddy from California State University East Bay shares that a few professors from his university were fired recently. What about the fee? Has it been hiked? We wonder. Manideep answers, "Fee was increased by $30 per credit but this was in the month of August. So I am not sure if it’s because of the recession or a general hike."
Also, this is not the first time the country, which for many is their dream destination to pursue their higher education, is going to be hit by a recession. The last recession period lasted for 18 months. This period started in December 2007 and got over by June 2009.
Consequences of the recession
Mayank Maheshwari, COO and Co-Founder, University Living, a global student accommodation marketplace, points out something important — the choices of students are changing. "We are witnessing a significant amount of students who are opting for countries like Germany, France and Italy, which are not major study abroad destinations but due to the cost of living coupled with other factors, students are seen moving to these destinations to pursue their higher education," says Maheshwari. Additionally, he opines that "the sky-touching tuition fees triggers the students to move to different countries like Europe, Australia and others."
Director of ESS Global, a study abroad and resettlement consultancy, Rohit Sethi shares that students have to take up part-time jobs as this also allows them to "get exposure to the work culture of the local country which eventually helps them build their careers."
A student, Anshul Reddy Anandula, from the University of Central Missouri suggests that students can take more time to finish their courses to overcome the consequences of the recession. "Those who are doing their master's should complete it as late as possible. I think it is the best solution," he said. Sharing his experience, he said, "I had a chance to finish my master's in December but I’m taking more time so that I'll have a chance to overcome this situation."
When asked about the impact of recession on freshers, President of upGrad Abroad Ankur Dhawan opined, "Impact of US recession will be minimal for the new batch of students who are going to the US as by the time they complete their course, in one and a half or two years, the recession will be over and they will become part of inversion of the cycle." He also adds, "For students who are going to complete the course this year, they will have some problems in finding jobs but as freshers are the most affordable labour, companies prefer to hire them. They might have to compromise on packages but overall, it should not have a major impact on their career outcomes.”
Freshers and graduates
A student, Yeturi Bhemeshwar, who went to the US in the fall of 2022 (September) opines, "Even if a recession happens, that will take place next year, mostly by end of 2023. So I’m trying to extend my course completion as long as I could so that I won’t be affected by the recession." Yeturi is a student of the University at Albany, New York.
Another student Nikhil Nalli from the University of Texas in Dallas shares a similar thought. He says "I would not be personally hit by the recession because the period lasts for two years maximum. So, if that’s the case hopefully, the recession would end by the time I enter the job market."
Vasudeva Cheruvu from the University of Minnesota, Minneapolis, who will be graduating at the end of December 2022, feels "The job market is also skewed for international students since no one is willing to sponsor in this economy." Further, he says he is "Definitely looking ahead and preparing for a tough job market." As he has a loan to repay, he focuses on prioritising that first. "I have already heard, read and spoken to people who are losing their jobs in this lay-off phase. I do have a loan and it is the first thing I want to clear as and when I get a job," he said.
Not stepping back
When EdexLive spoke to aspiring candidate C Neethika Reddy, who is very determined to study in the US, she said, "It is not only about dollar and rupee value, the cost of living depends on an individual's choice and how they are cutting down on their financial expenses."
Talking about employment, Neethika, who is planning to study at the University of Texas, Dallas said, "The university I am planning to study at claims of having a 94 per cent employment rate. So I don't think I will have to experience the consequences of a recession," she adds. Moreover, "Mass layoffs are more in the US than in India. So I am planning to study there and come back to India for work," she said.
Predicting the future
Mayank from University Living said, "There is comparatively less chance of students bagging a new decent job which defeats the whole purpose of going to the US and spending so much money."
While ESS Global's Rohit feels, "I don't think students will have to settle for something less or something that they don't want to pursue in the first place. They need to analyse what fits best with their portfolio and accordingly start applying for jobs." Further, Rohit said, that this is the time when students should invest in themselves a lot more. Referring that this move doesn’t just refer to money and time but also effort, he said, "Students should take the initiative to upskill with online courses that award them with certifications upon completion or even self-learn website building."
Sharing views on the impact of changing employment patterns on students, Rohit said, "If they are interested in breaking into the tech industry, for example, they can broaden their focus and think of related areas where they can get a toehold and use that as a stepping stone."
Altogether, students seem hopeful that they will sail through the ocean of recession to get better opportunities.
