Amid rising costs, new measures to encourage study abroad

 New measures are being introduced by the Japanese government to try to make longer-term study abroad more attractive in a sector deeply affected by a weaker local currency, financial uncertainty and student concerns about missing out on local job recruitment opportunities while they are abroad, according to experts.


Among the recent measures are an expansion of full scholarships, including air flights, by universities targeting selected students and initiatives such as lectures and seminars to explain the merits of a global education.

The yen, currently trading at around 150 to the US dollar, has dropped over 30% against the dollar since 2023. Japanese university tuition hovers between JPY1 million (US$6,800) to JPY2 million annually. In comparison, prestigious universities in the United States cost at least three times more.

“In 2024, we had 250 students who went abroad on scholarships supporting tuition for between six months to one year’s stay. The challenge, though, is to increase applications that aim for two years of study and over,” said Akihiro Wakao, director of the International Office at Nagoya University of Foreign Studies.

Three in 10 college students apply for scholarships to go abroad – a figure similar to pre-COVID years, Wakao told University World News, although not all are successful or follow through on the opportunity.

Popular destinations include the United States, Australia or the United Kingdom. “The main target for Japanese applicants is to gain communication skills in English that are an advantage for their future careers,” said Wakao.

According to the Ministry of Education, around 21,000 students were supported by national scholarships to go abroad for up to a year in 2024, showing a rebound post-COVID, but only 398 and 265 students enrolled in graduate and undergraduate schools overseas, respectively, indicating low interest in full-time study abroad.

In 2023, the government’s Council for Future of Education Creation set a target of 500,000 Japanese students in long-term study at universities overseas by 2033.

The public budget was also increased for scholarships and student exchange programmes – JPY34.6 billion in 2024, up from JPY33.2 billion the previous year.

“In a new form of capitalism, it is essential to further invest in people to foster and secure higher specialised professionals who can thrive in cutting-edge global fields,” explained then Prime Minister Fumio Kishida in a public speech.

“Yet the stakes are high,” according to Professor Yuriko Sato, who teaches higher education globalisation at Tokyo Keizai University.

“While financial issues are a major concern, Japanese students also face social and cultural challenges that need to be addressed if we want them to study abroad,” she told University World News.

She emphasised that it is easier for Japanese students to stay at home, where they do not face the challenges of studying in a foreign language, adapting culturally, and grappling with a more difficult job hunt.

Sato, who also researches corporate internationalisation, noted students’ deep concerns when deciding to study abroad.

“While more companies are ready to employ Japanese youth with English language ability, a decision to move away from their country often represents difficult choices,” she explained.

Her research shows a key concern for students is interrupting their studies in an entrenched system which can see job hunting start in the second year of college and employment confirmed by the third year.

“With companies facing a labour crunch, over 90% of Japanese four-year university graduates find employment. This has contributed to a strong complacency that is also the reason for their hesitancy to study abroad,” she noted.

Tobitate! Study Abroad Initiative

The government’s a popular public-private project, Tobitate! Study Abroad Initiative (Tobitate is translated as “leap for tomorrow”) has been distributing scholarships since 2014 under the Ministry of Education.

Themes include innovation, diversity, and science, technology, engineering, and mathematics (STEM), although the humanities are the most attractive areas of study for student applicants.

Tomoko Nishikawa, Tobitate spokesperson at the Ministry of Education, reported that over 80% of students (including high school students) in a survey in 2024 responded that while foreign universities continue to attract Japanese students, the lower yen is a major obstacle.

In the same poll for parents, about 20% of the 4,000 respondents said they could not afford to support plans for their children to study abroad.

“Parents, in particular, don’t see the merit in investing their savings in foreign education. As a result, we are conducting new initiatives such as seminars to encourage a change of attitude in the public,” Nishikawa told University World News.

Last year, Tobitate provided scholarships, including travel, for selected students. In 2024 there were 1,347 applications from 224 universities, from which 255 students were selected, representing the limit of the available funds.

The programme is financed by private funding, mostly from corporations. But Nishikawa pointed out that donations have dropped drastically.

By the end of April 2022, JPY12.3 billion had been raised since 2013 in the first stage of the scheme. In the second stage of the scheme, starting from 2023, just JPY4.1 billion has been raised so far, which she noted was a “slow start”, as companies were concerned about economic stability. Stage 2 of the scheme runs until 2027.

The majority of these scholarships cover only one month of study, which is popular among both university and high-school students.

Nonetheless, student comments on the Tobitate website indicate study abroad was life-changing for them.

“I changed my career plans from becoming a lawyer to taking a job that allows me to travel out of Japan,” wrote a student who participated in a two-month global leadership programme at Harvard University in the US.

Asian destinations such as Malaysia and Singapore are also emerging as popular destinations for Japanese students looking for lower costs and developing English language skills, according to a 2023 survey by the Japan Student Services Organisation (JASSO).

The survey indicated that learning language skills was the most popular purpose, and the study period was between one and two months.

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