New ROI Of Studying Abroad: It’s No Longer Just About The Degree
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The significance of studying abroad is no longer restricted to the degree alone. Increasingly, students are evaluating how their education can help them access better career prospects, develop global connections and provide them with experiences that can contribute to their professional development.
According to UNESCO, the number of students studying abroad was 7.3 million in 2023, three times the figure in 2000. The value of a foreign qualification begins when it opens career opportunities and extends beyond the classroom and diploma. Students who study abroad see an increase in their employability and annual earnings, but also have access to a global network and the chance to experience and learn from diverse perspectives and cultures. While the initial return is driven by the qualification, every experience a student undertakes while studying abroad contributes to the ultimate ROI.
Understanding the Overall Investment in an International Degree
Tuition varies widely across popular destinations. In the US, international master’s students at public universities typically pay out-of-state rates of about US$21,698 a year, and private universities charge more. The UK averages about £17,109 for international master’s students. France charges non-EU students €3,941 a year at public universities, while Austria’s fees start at €726.72 per semester, roughly €1,453 a year. Most public universities in Germany charge no tuition, only a semester fee of about €100-350.
Tuition is just one component of the picture, alongside accommodation, cost of living, and travel, which can all be planned for in advance. Most leading destinations offer the option to work on a part-time basis for international students, which can assist with rent and living costs.
How the Return on Investment Takes Shape Across a Career
Career prospects come into focus first, with an international qualification enabling students to access a range of job opportunities in different countries. With non-EU graduates eligible for a residence permit for up to 12 months in France and 18 months in Germany, a student has time to search for their first job without the pressure of an approaching visa deadline.
Studying in a major technology, finance, engineering, design or hospitality hub gives a student the opportunity to learn about the industries from the inside, understand how companies operate and recruit. On-campus recruitment opens doors to an array of interesting employment opportunities from various industries. Companies visiting the campus for recruitment fairs and interviews can provide the gateway to an entry-level position.
After graduation, classmates, mentors, and faculty scatter across the globe in various industries. A graduate who remains connected has access to valuable contacts in several countries, and this network opens the door to referrals, mentorship and a better understanding of how different job markets work. Being overseas can also broaden perspective, enabling them to be self-dependent and more willing to relocate for the right opportunity.
The salary they can expect increases over the course of their career. Across OECD countries, in 2023, people aged 25-34 with a tertiary education earn on average 39% more than those with an upper secondary education, and 67% more for people aged 45-54. Early responsibility helps that progression, and 64% of employers in the Erasmus Impact Study said they give more responsibility to graduates with an international background.
Matching the Destination to the Career Ahead
In recent years, Germany, Austria and France have become increasingly popular among international students, competing with the US and the UK, offering good value for international students, while providing excellent research and engineering opportunities. They also have a growing number of business schools and more English-taught programmes, making them more accessible to international students.
The right destination depends on the career a student wants. Those interested in finance find more opportunities in the financial capitals, while those considering a technology-based career might want to consider a university in a technology hub.
In my experience, the students who gain most treat studying abroad as a long-term career decision, one where the learning continues well beyond the degree. They weigh programme, destination and internship options together, always with the career they want in view. The degree gives that career its start, and the experience, contacts and confidence gathered around it take a graduate across borders.
Views are personal
The author, Prashant Pachisia, is Director, Global Talent Square (GTS)
