International student mobility thwarted by immigration reforms
Will universities soon be deprived of their international students? In the UK, Australia, Sweden, Canada, France, and Belgium (which opt for more flexible reforms for talents and stricter ones for unqualified/undiplomaed expatriates), new immigration laws are introducing more restrictions, impacting international students' plans to move abroad. These countries' image is also affected, making them appear less welcoming to international students, which is precisely their intention: to attract fewer international students.
Despite these challenges, universities in these countries continue to shine internationally and emphasize their prestige. They are not backing down, especially in an increasingly innovative and competitive world. However, these reforms are a serious blow to their ambitions and disrupt their organization. Prestige comes at a cost that states seem unwilling to bear. Meanwhile, other countries like the UAE, South Korea, and Japan seize the opportunity to attract students disillusioned by the reforms in major immigration destinations. Here's a closer look at the latest reforms in Canada and the university crisis in the UK and Australia.
Canada is reorganizing to welcome international students better
Canada remains a major immigration destination, eager to attract foreigners essential for maintaining its economic and demographic growth. However, its latest reforms have significantly tarnished its image. 2024 began with a cap on the number of international students, a "temporary" two-year cap, according to Immigration Minister Marc Miller, who opposes his predecessor Sean Fraser's claim that international students were responsible for the housing crisis. In August 2023, Fraser, then Housing Minister, stated that foreigners exacerbated the housing crisis.
The minister aims to reduce the number of students by 35% to improve international student integration and reduce malpractices. Several unscrupulous universities are scrutinized for charging exorbitant tuition fees without providing quality education to international students, circumventing programs, and issuing "fictitious" degrees. The government intends to tackle this parallel system.
Restrictions plunging UK universities into financial trouble
Brexit severely impacted international students' plans, especially those from Europe, with their numbers dropping since the UK officially left the EU. Inflation and numerous Conservative reforms have increased restrictions on international students, making studying abroad more complicated than ever.
2024 began with more restrictive measures under Prime Minister Rishi Sunak: increased visa fees, health surcharge, tuition fees, and work permit restrictions. Universities are worried about the declining number of international students. In the first quarter of 2024 alone, there were 30,000 fewer visa applications compared to the same period in 2023. In 2022, universities already saw a 50% drop in European students due to Brexit. Now, they face a significant decrease in non-European students.
40% of British universities are in deficit
Universities fear a brain drain to other popular destinations like the US and Canada. International students pay two to three times higher tuition fees than British students (from £10,000 to over £35,000 per year), which are crucial for their finances. In contrast, local students pay a capped fee of £9,250 per year, unchanged since 2012.
Fewer international students means less revenue for universities. To quickly replenish their funds, some universities, like the University of York (part of the prestigious Russell Group), are accepting more foreigners, even if it means lowering standards. Universities would turn to the state for help, but government funding for higher education continues to decline. International student funding now represents about 20% of university revenues, double the amount in 2014.
Financial problems directly affect universities' operations, the quality of their infrastructure (with dilapidated buildings, lack of space, and outdated IT equipment), and their teaching. The University of Northampton, for example, expects a deficit of £19.3 million this year due to a 40–50% drop in international students. This year, 40% of British universities are likely to face similar deficits.
Will teaching quality decline?
"Double zero." This harsh assessment by analysts calls for a deep reflection on university funding. "Double zero" for the state, accused by critics of ignoring a long-known problem while continuing to tighten immigration rules. Universities claim they have done everything to alert the state. International students are the first to suffer, both financially and in terms of education quality.
International and local students report declining teaching quality, with staff reductions, service closures, even entire department shutdowns, overcrowded classes, reduced class hours, and increased online pre-recorded courses. While this solution was acceptable during the pandemic, it is less justifiable today. Prestigious universities like Oxford, Cambridge, and Birmingham are not spared.
A drop in international student numbers hits university finances in Australia
Australian universities are also facing a decline in the number of international students. In February 2024, 20% fewer visas were issued to international students, an unprecedented figure welcomed by the government. Pursuing its goal of reducing net immigration, the country continues its restrictive policies to further reduce international student numbers. Recent measures include ending visa hopping, raising the minimum income for student visa applicants, complicating visa tests, and capping international student numbers.
Like in the UK, Australia's immigration strategy significantly impacts universities and regions. Australian universities also rely heavily on international students for financial support. In 2019, 440,000 international students studied in Australia, rising to 768,000 by October 2023. Australia is one of the top destinations for international students, behind only the US and the UK. Some universities, like the University of Sydney, have 50% international students.
Analysts highlight that the issue is not the number of international students but the university funding model based on exorbitant tuition fees paid by them. The pandemic prevented expatriates from traveling and revealed the system's fragility. Like in the UK, the Australian government invests very little in higher education. The consequences of this disinvestment extend beyond universities. In Victoria, Australia's second-most populous state, the entire economy is affected. A study by SPP Consulting for the University of Melbourne and Monash University shows that public universities contribute AUD 27.4 billion to the state's wealth. These universities increasingly rely on high tuition fees paid by foreigners for funding. International students and university staff redistribute AUD 15.4 billion through their spending (rent, food, etc.). The study indicates that the decline in international students directly impacts Victoria's growth.
Businesses and universities in crisis
Businesses, especially those facing labor shortages, also suffer from the government's restrictions. Yet, the government claims to reform its immigration policy to better direct foreign graduates to sectors with labor shortages. Analysts warn that the decline in international students could lead to service closures, not only in universities but also in states. They also warn of a potential brain drain, a tarnished image of Australian universities, a lack of business support, and a slowdown in research and innovation.
The recent end of visa hopping is another blow to Australian universities. Visa hopping allowed foreigners with visitor visas to apply for student visas. The Australian government reports 36,000 visa applications between July 1, 2023, and May 31, 2024, criticizing this "non-compliant" path for leading to many abuses. Universities and language schools contest these "unverifiable" claims, noting that many students use the system to confirm their choice or improve their English. Language schools, in particular, are concerned as they rely heavily on foreigners (students, working holiday visa holders, and visitors), with some reporting that 90–95% of their students are of foreign origin.
Studying abroad in 2024
International student mobility will undoubtedly continue as international immigration remains a key driver of state growth. Will recent elections in the UK and France change the situation? In France, the surprise victory of the left-wing coalition creates hope among international students. The left has already announced plans to repeal the controversial reform passed in January 2024, which tightened immigration rules.
Similarly, international students are hopeful following the Labour Party's overwhelming victory in the UK. However, new Prime Minister Keir Starmer, despite being a strong European advocate (he voted against Brexit), has stated he will not reverse Brexit. Instead, he hopes to "strengthen" and "tighten" ties with Brussels. Prospective expats see this as a sign of potential easing. Universities also await strong measures to address the crisis. In Australia, universities continue to warn the government that its obsession with reducing net immigration will cost growth. International students, significant contributors to local economies, will consider alternative destinations. The concerns not only short-term economic but also long-term growth prospects, as students opting for other countries are unlikely to return.
Emerging destinations for international students
The UAE aims to capture students who are disappointed by the reforms in major immigration destinations. This hub for foreign professionals also seeks to become a new top destination for international students, opening its Golden Visa to students to attract the best talent.
South Korea and Japan share similar ambitions and a common challenge: the language barrier. Both countries aim to host 300,000 international students by 2027. A South Korean reform proposes lowering the required language level to facilitate foreign entry. However, this proposal faces resistance from academics, who believe that mastering Korean should remain a prerequisite. They argue that lowering standards will affect teaching quality and hinder student integration. Japan maintains its system, with more universities offering programs in English while emphasizing the importance of learning Japanese.
Attracting the "best" students remains a significant challenge for countries. Hong Kong universities are doubling efforts to attract international students and restore their global reputation. They also seek to balance the increasing influx of Chinese students.
Finally, less popular student destinations, like the Netherlands, Finland, New Zealand, Portugal, and Spain, have implemented measures to accommodate international students in an increasingly competitive and innovative world. They strive to offer appealing programs and facilitate entry processes, hoping to attract those seeking promising alternatives.
