AEG doesn’t discriminate against student views and it’s our policy to publish contents even if it doesn’t align with our goals.Students should not be discouraged by reading this article and we think it’s our responsibility to expose true situation that prevail in US.This article from Ashutosh is one among them that clearly exposes problems that international students face .If you don’t agree what Ashutosh has written please leave your comments below.
United States has been the top study destination for international students for over 3 decades. It has some of the top universities in the world today. In fact 6 out of 10 top universities are from the States. Such is the clout of these universities.
In the coming years the situation is not looking as bright as it used to be. What is going to happen and how it will affect the inflow of international students in US, let us discuss.
Why the United States Economy is in Jitters:-
Most of the economic policies in use today have originated in the US. These policies are so complex that no common man can understand without spending good time in the subject. So I will discuss it in a way that even a layman can understand it.
Let us start from the very beginning, i.e. why is there a state of financial crisis?
To understand this we have to go back to the date the Federal Reserve Bank was formed. Very few people have the idea that the Federal Reserve Bank was actually chaired by the best investment bankers of their time.
We will discuss it in points now.
1. Every country’s economy is assessed in terms of GDP. Suppose a country’s GDP is $ 100. The Federal Reserve Bank or in many countries the central bank, maintains the money circulation in the country. If GDP value is $ 100, the Central Bank gives $ 100 to the government on interest.
2. The government uses this money for development works. But still the government has to return this money to the central bank with interest. The problem comes with this interest.
3. The money in circulation is only $ 100. So where will the extra $5 come from. This in turn is also circulated by the central bank so that the government can pay the money.
4. At this point the money in circulation in $105, but the country’s GDP is only $100. So the value of money goes down. This is called inflation in very crude(layman) terms.
After understanding this concept lets come to the second important concept which you need to understand before we can head on the real problem.
Let us discuss some more points to understand this:-
1. The US government pays taxes collected to the US treasury. Every year what happens is, suppose the US government has to pay back $800 billion to the treasury, but it has only $500 billion.
2. At this situation the US government takes the deficit on debt(in crude terms). This debt is taken by various banks, mostly the Federal Reserve Bank.
Taking the example of the bailout at the time of recession in 2009, US government bailed out various corporations and increased its debts.
3. This debt keeps on increasing with time since the US government can’t pay the deficit by itself, simply because it does not have the money.
4. This is the reason why Standard & Poor lowered USA’s credit rating from A+ to A. This was a symbolic statement that US government is not in a state to take more debts!
5. Right now the situation is very critical. The debts have reached a level, where it is in comparable levels with USA’s GDP!
Now that we have understood the situation in very crude terms we can move the discussion to the main topic. Why I decide to study in Canada despite I-20 from Michigan State University?
How this situation will affect students:-
International students who go to US to have a good education will continue to do even if the situation seems bleak. The thing is the students who go to US with a work visa will bear the brunt of this critical situation.
1. Dollar will lose its shine:-
- The problem is not about the dollar losing its value. It is other currencies gaining value in comparison to the dollar.
- China for example has booming exports. It means growth in demand of Yuan. This raises the value of Yuan in comparison to dollar. Thus Chinese government buys dollar, to maintain the value of Yuan against the dollar.
- This has resulted in huge dollar deposits with China. That’s why you read in the newspapers that China’s Forex Reserves are to the level of $2.7 trillion.
- China in turn invests this money in US treasury buying US treasury bills. A layman can’t understand the complexities. For a layman, just understand that this affects the exchange rates in a big way.
- If the dollar loses its power against other currencies, you would just hope that why did you not apply for a job in your own country.
2. Job Cuts by the US corporations will make it difficult to find jobs:-
- Major corporations in US are still looking for ways to cut costs. This has already impacted the job market in the US.
- In the recession period, US government bailed out various corporations in a big way.
- If these corporations had gone bankrupt, thousands would have gone jobless.
- If you have understood my above arguments, you can understand that another recession is on the card.
3. Being Jobless in US is not the right thing to do:-
- The salary levels in US are sky high. If you compare the salary levels of US and India, there is a huge difference.
- If you are paid $50,000 for a job in US, the same job will be around Rs. 6-8 lakhs in India. This amounts to a meager $13,000. Just see the difference.
- If US corporations are even in a bit of bother, they won’t mind to fire you. Keep this in mind.
- It is not easy to maintain the same lifestyle for the time you are jobless. You can read the book by Robert.T.Kiyosaki, named ‘Rich Dad Poor dad’, in which he mentions that you must have a plan for all these three:-
- To be Rich
It is better to plan than pay for carelessness.
4. Even the best colleges and the best degrees are not proving enough to get a job:-
- Even degree from Harvard will not guarantee you a job in the international market.
- Of course you will find a job, but the ROI(return on investment) is not going to be too good if you are not very exceptional.
I hope you must have understood my arguments. It is not as such that USA’s position will not be better. But considering the economic condition coupled with the state of jobs in US, it is not advisable to go study in US as of now. Even another recession is on the cards. Thus I would suggest to do one of the following:-
- Find the best possible institute or university in your own country and try for that one.
- Try to analyze the return on investment you are getting. In any US university you would be spending around $60,000 on a whole including living expenses.
- Try and find out if the average salary in your field of interest is comparable to the fees you are spending.
- Always have a backup plan. Suppose you go to US and find no job, always be ready to move. Don’t be rigid with the location.
- Try for European Universities which are giving good returns as of now. European economy is all set to grow and looks promising.
5) H1B & immigration:
Getting a job requires a student to find a sponsor who can sign your H1B papers. This is not an easy task. You can question how come H1B quota update showing more than 20,000 jobs in just 4 days? Doesn’t it mean 20,000 jobs are created in US ? This is were Indian companies are playing their usual game.H1B application is supposed to have a job offer, which means the job actually exist and student should be able to start from Oct 1.But most of the Indian companies/consultants only start to look for job in October, thereby making you out of status for 3-6 months at least. US congress is trying to plug this gap by increasing H1B application fees and rejecting H1B visas at consulates.Some news reported 27% rejection rate recently.
6) Green Card Issues:
Do you know how long it takes for an average Indian student getting employment and going through EB3 quota for green card…70 years…In other words, you will not get green card till you die.
This is the current state for international students going to US. If you for sure planning to return to your country after 2 yrs. That’s a great option. You will not get any return on investment for the money you put-in in your education. Although people argue about international exposure, culture exchange…etc, it finally boils down to money and settling in US. At this time there is simply no way to settle in US at least 15yrs from the time you complete your studies.