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The impact of the falling dollar and inflation on study abroad
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The buried dollar (Source: AP)
Every one speaks of raising oil, food and energy prices in the United States and how inflation is affecting American consumer. It is common knowledge the dollar has fallen against other currencies over the last six years, most notably the euro. The current exchange is €1 to $1.5811 according to Google conversion. The constantly falling value is affecting evert aspect of American lives, including study abroad and travel.
Sitting at a café in Paris, the beauty of the city including the Eiffel tower, the Louvre, the Arc de Triomphe, is overshadowed by the exorbitant price of a cup of coffee. In Paris, already one of the most expensive cities in the world, a cup of coffee will cost around €4, equivalent to a little over $6. In London, 4 British pounds is equivalent to almost $8.
On top of never ending tuition increases at home, students who have spent years dreaming of study abroad are now finding themselves in a conundrum. Schools are being forced to increase prices of study abroad programs to compensate for the growing disparities in exchange rates to the point where many students literally cannot afford to study abroad. For those who take out loans or have managed to save up money for the trip find their money goes a lot less further than it used to, which limits travel opportunities and cultural incorporation. When traveling, students are forced to eat peanut butter and jelly sandwiches and cups of noodles as opposed to trying local restaurants or cafés which are now too expensive for a student on a budget.
While the exchange rates affect all travelers, the impact is especially precarious for students who are living for months in foreign countries with no source of income while the dollar continues to fall. While study abroad is a wonderful opportunity to travel, with raising oil prices comes increased prices in airfare and bus fares. When abroad, you want to discover all that the country has to offer, however, discovery costs money and many students are left discovering the inside of their rooms because they cannot afford to go out and spend ten dollars on a beer. In Europe especially, students feel frustrated because everything costs more or less the same as in the States, but with the exchange rate, it feels like you are throwing away money to get the exact same thing, and students do not understand where the money is going or why the fluctuating value of a piece of paper leads to the rapid decrease in savings.
In tight moments of money the first thing to go is unnecessary luxuries. Unfortunately, travel and even study abroad are often viewed as luxuries. Therefore, inflation is not only a threat to the American economy but also to study abroad and the travel industry. Those who are brave and still wish to study abroad despite the economy crisis often times are left with thousands of dollars of debt (like yours truly for instance). Instead of enjoying the experience students are literally freaking out about prices and money spending.
Upon returning home, the crisis does not cease. After a being abroad, broke students are returning home to $4 a gallon gas prices, increased food prices, increased tuition, increased rent costs, increased energy bills, increases in nearly everything. According to a CBS news report, inflation is at an all time high since 1991. On top of the psychological strain of returning home and reverse culture shock, students feel shocked and overwhelmed by how much everything costs.
The currently grim situation leaves a gloomy outlook for the future of study abroad and travel. However, at least with the never-ending change in exchange rates, while students may not see or fully experience an area due to money frustration, students who are constantly figuring conversions outside cafés in Paris will always have sharp math skills.
For more info: Check out the Wall Street Journal's current exchange rates the dollar against other national currencies
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