Central banks across the world have simultaneously hiked interest rates in response to inflation. The world is heading towards a global recession in 2023.
As per the new study by the World Bank, we can expect a string of financial crises in emerging markets that will cause lasting harm.
The new financial conundrum has us all wondering how the global recession and fall 2023 intake are interrelated.
Is a Graduate degree or an MBA a good idea for International students in a global recession?
Yes. Let’s understand why.
Businesses operate in a cycle
When markets go up, they go down and when they go down they also come up. Recession is always followed by recovery.
Look at the dotcom bust of 2000. The dotcom bubble was a rapid rise in U.S. technology stock equity valuations fueled by investments in Internet-based companies in the late 1990s.
There was an unprecedented growth from 2004-2005 followed by the recession of 08-09 which was again followed by growth in 2011-15.
Evading the job crises
When the economy hits a recession, like it is in now, the economic slowdown will cause a freeze in hiring.
Currently, even big tech companies like Google and Microsoft have temporarily announced a pause in recruitment. Even Meta, amidst the rising borrowing costs, faster inflation and slower economic growth laid off 11,000 employees.
As a fall 2023 intake in global recession, you will be able to evade this job crisis by delaying yourself from the job market for another year.
You can put that year to better use by equipping yourself with employable skills.
Consequence of the recession – better jobs for you
Let’s say you are an international student in a global recession, when the country’s economy starts getting out of recession, the country will naturally employ a number of strategic projects.
This means that the economy needs more labor to execute such projects. Consequently, you can expect an increase in job opportunities.
As you can see the unemployment rates peak and fall.
The job opportunities will not just increase in numbers but rather the variety of jobs available will also increase meaning you can find a job that you are qualified for.
When you enroll in the fall 2023 intake in global recession, by the time you graduate, the job market will open up.
In your final semester, you can rely on your university’s career guidance and benefit from the ample job opportunities.
Opportunity for growth
Being a fall 2023 intake in global recession means that you will enter the job market at the right time, at the beginning of the peak.
You will be able to enjoy the summit of the peak and ride out its benefits. Hence you can expect salary and career growth.
ROI on education amidst hiking tuition
International students under the overseas status have to pay almost double the fees as compared to resident students.
Take this example from the University of Alberta where a 6% hike was announced for international students.
Drastic tuition fee increase happens because of inflation. And because of the current financial climate, fees are higher than ever.
This means, the cost of living has also increased in popular study abroad destinations like the US, the UK, and Canada.
In the U.K., inflation recently hit double digits for the first time in 40 years, and is expected to climb to around 15% in 2023. Similarly in the U.S., inflation peaked at 9.1% in 2022, marking another 40-year high. This is squeezing household budgets, affecting consumer confidence and driving up the cost of living.
It’s no surprise that the estimated annual cost for an Indian student at the Massachusetts Institute of Technology (MIT) has gone up from $77,020 for the academic year 2021-22 to $79,850 for 2022-23.
Moreover, exchange rates are at an all-time high for international students.
Because of the steep prices, most international students have to take out loans. And, the Reserve Bank of India recently hiked interest rates on education loans.
This means larger EMIs for international students in a global recession.
The tuition fees will continue to rise with each passing year.
The only way to pay back the loan is by the boom that will follow the recessions. As a fall 2023 intake in global recession, you can expect to pay back the amount unlike the students who graduate in the recession.
Fund your education with FundRight
International students in a global recession have to be smart about where they get their loans from. Find the lowest in test rates with the help of FundRight.
FundRight is the world’s first online loan bidding platform. All you have to do is create an account and public/private sector banks, NBFCs, and international lenders will send you their offers to finance your education in India or abroad.
You can pick the loan that best suits your needs. Since, banks compete you can:
- Find customized offers from 13+ lenders with better terms
- Get loan offers without collateral
- Save up to INR 8 lakhs
We have covered almost everything you need to know about the fall 2023 intake in global recession. It is the right time for students to pursue a Master’s, especially if your degree of choice is 1.5 or 2 years long. This means you’ll be an eligible sought-after candidate right as the economy hits its recovery period.
