The increasing financial burden for studying abroad due to the USD appreciation.
In recent months, the exchange rate of the US dollar has constantly been increasing, intensifying the financial burden on people around the globe. Particularly, students attending universities in the United States are now supposed to pay exorbitant tuition fees that have been directly affected by the appreciation of the dollar.
The US dollar has strengthened as it has reached the equal value of the euro for the first time since the early 2000s. This is because the Federal Reserve and the central bank have had higher interest rates which mean higher returns for investors. Besides, the Russian invasion of Ukraine has put the European economy at risk, resulting in natural gas prices soaring. In response to the global economic crisis, many investors worldwide have moved their assets into US dollars, the safer option. Consequently, the dollar’s value has been intensely appreciated, and many countries, especially developing countries, have struggled to handle the inflation caused by the appreciation.
In Korea, such fluctuations in the foreign exchange market do not significantly influence the Korean domestic market in the short term; however, the continuous appreciation has a critical impact on those who regularly participate in the exchange of foreign currencies. In one of the cases, students at George Mason University Korea are concerned about their educational expenses, as they must pay tuition fees in dollars. Since last February, the dollar has increased from 1200 Won to 1300 Won level, which means an additional cost of 1,000,000 Won is expected to be paid for a full-time student compared to the previous semester.
The ever-increasing dollar exchange rate is not only staggering the global economy but is also a severe challenge for students studying abroad. As many experts predict that this strong dollar tendency will remain in 2022, the students’ unforeseen financial burden seems to continue further.
Written by Daemo Gou | Staff Writer
Revised by Yu Bin Kwon | Managing Editor
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