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Fresh horizons open up for education in Europe

By Xiao Xiangyi | China Daily European Weekly | Updated: 2011-03-04 11:14
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Currency woes help Chinese students sniff out alternative havens of learning in other countries

The sovereign debt crisis and the euro depreciation are proving to be a windfall for Chinese students keen on pursuing educational courses in Europe.

Instead of the oft-pursued educational destinations in the United States and the United Kingdom, Chinese students now have a plethora of choices in other European countries, thanks to the weak euro and its constant fluctuation against the yuan.

"I realized that I could send my son for higher studies, after learning from my colleagues last year that educational expenses have reduced due to the euro depreciation. My friend told me that the educational expenses for her daughter in Spain are much lower than what it was earlier," says Li Jun, a Tianjin-based mother, whose son is seeking admission for a masters program in automotive engineering at a German university.

For many Chinese families, overseas education is still a luxury.

"The euro depreciation reminded most of us that there were good affordable choices for education in Europe like Germany," says Li.

"Most of the parents discovered that education in Europe was something they could afford, after the yuan appreciated against the euro," says Hou Cong, manager of European department at Beijing EIC Group, an overseas consulting company.

The euro hit a seven-year low against the yuan in May 2010. "That in turn, means that we can look at something like a 10 to 20 percent discount from the original expense amount for overseas education," Hou says.

According to Hou, there has also been a steady increase in the number of parents making enquiries at overseas consultancies about higher education in Europe.

The number of people seeking more information about education in Europe rose by 30 percent in 2010 compared with 2009. Even in January 2011, normally an off-peak period, the number of customers has risen 15 percent year-on-year.

Like EIC, many other consultancies are also reporting higher enquiries for European education. The European department of JJL Group says its business grew by 10 percent last year.

Hou says there has also been a shift in choices with nations such as Germany, France, Switzerland, the Netherlands, Spain and Italy being the new favorites of students.

"I was lucky to buy euros at its lowest price when it depreciated against the yuan," says Huang Yan, who bought 10,000 euros at Bank of China's Beijing Branch in May 2010, for her son's living expenses in Spain. Huang would have spent nearly 16,000 yuan more if she had purchased the euros in 2009.

"More and more parents are exchanging yuan for euros and our business has grown by nearly 33 percent since last May," says Han Fang, a consultant at the Overseas Financial Service Center of the Bank of China in Beijing.

"I have added real-time exchange rates to the favorites link on my PC. I just click it every day so that I do not miss the right opportunity to convert yuan to euros," says Li.

"I'll exchange euros when I find the price acceptable. The best time is hard to catch. No one can predict the rate. It's simply a hedging strategy."

In most of the public universities in European countries such as Germany, France and the Netherlands, students just need to pay tuition fees and it is quite different from higher education for international students in other developed countries. The total fees for an average Chinese student to study and live in Germany or France per year varies from 50,000 yuan to 80,000 yuan, or at most 100,000 yuan, which is only half the entire cost of similar education in the UK or the US.

But it is not just the affordability advantage that is propelling Chinese students to European shores. Apart from the low tuition fees, parents also take into consideration other factors like safety and environment.

"Safety always comes first, of course. A good social order guarantees a pleasant experience in overseas colleges. We don't have to worry much about our son in Europe," says Li.

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