According to new figures released from Higher and higher, HSBC's latest report in The Value of Education series, globalisation of higher education shows no sign of stalling. The study of over 8,000 parents across 15 countries and territories found that more than two-fifths (42 per cent) would consider sending their child to university abroad, compared to 35 per cent in 2016 - a seven percentage point (pp) increase.
Ambitious parents in Asia are boosting the trend: India (62% plus 15pp), Indonesia (61% plus 1pp), China (59% plus 15pp), Hong Kong (52% minus 2pp), Malaysia (51% plus 8pp), and Singapore (47% plus 4pp).
This echoes OECD data that highlights that Asian students account for 53% of all students studying abroad worldwide. According to HSBC's partner, the Institute of International Education (IIE), China is the leading country of origin for international higher education students, sending an estimated 801,000 abroad, with India (1,82,000) and Malaysia (64,000) also exporting significant numbers.
Despite a common idea that international students would stay in their host country after graduating, parents' top expectation (35%) is that their child would search for full-time employment at home. Only 9% would like their child to search for full-time employment in the country where they have completed their university education.
Cost of education
The majority of parents (73%) considering university abroad for their child expect to make a significant financial contribution, and estimate the overall average cost of an undergraduate and postgraduate degree abroad to be USD 157,782 (USD 71,580 for UG and USD 86,202 for PG). Many parents (45%) would go further and consider buying a property in the country where their child is studying.
More generally, spending on education is particularly resilient in Asian countries. For 44% of parents in India and 42% in China, paying for their child's education is their most important financial commitment.
Trista Sun, HSBC's Global Head of International and Cross Border, said: "HSBC's report shows that the number of parents, especially in Asia and UAE, who are ready to invest in an overseas university education for their child's skills and employability continues to grow. With an undergraduate's total cost expected to be around USD 72,000 on average, the investment is financially significant for parents. Additionally, 45% would consider buying a property in their child's country of study. Parents need to plan ahead and look at all the implications of funding international education.
"With 39% of parents having specific universities abroad in mind for their child, their investment goes beyond financial. They spend a lot of time and energy to help their child build their academic profile and credentials for them to meet the entry requirements at prestigious universities."
With the power of its global network, many banks support customers with their international financial needs in four of the top five destinations for higher education abroad. Whether it is setting up a bank account before they arrive in a new country, or welcoming them to settle in, banks offer a package of products and solutions to ease their journey abroad. In addition, banks are partnering with key players in the education ecosystem - education agencies, secondary schools, language schools, universities, visa services, students associations - to provide support to families beyond banking services.
Top Study abroad destinations
Parents see the main benefits of a university education abroad as being to help their child gain international work experience (49%), develop foreign language skills (49%) and to be exposed to new experiences, ideas and cultures (48%).
Overall, the USA is the most considered international destination by parents for their child's university education (47%), ahead of Australia, the UK, Canada, Germany and France.
Data from the Institute of International Education shows that alongside traditional destinations for international students such as the USA, the UK or Australia, destinations in Asia are becoming more popular.
Practical steps for parents
Practical steps for students
More than two-fifths (42%) would consider sending their child to university abroad, compared to 35% in 2016 - a seven percentage point increase
Indian Parents' are spending $ 18,909 on their child's education
94% Indian parents would consider postgraduate education for their child
According to Indian parents, the top three destinations for university abroad are USA, Australia, UK
82% Indian parents would consider an online university degree
Value of higher education - According to new figures released from Higher and higher, HSBC's latest report in The Value of Education series, globalisation of higher education shows no sign of stalling More info visit : http://www.dailypioneer.com.