The escalating costs of education and new strategies by international students
The increasing cost of education and restrictive immigration reforms are primary concerns for international students, and these issues are closely intertwined. Leading nations are implementing policies to curb the influx of international students, diminishing their appeal as destinations.
Consequently, escalating tuition fees are prompting students to explore less renowned countries that still offer high-quality educational programs, akin to top expat choices. A notable example is Australia, which has been affected by recent stringent measures—including a hike in the income threshold required, an increase in student visa fees, and the elimination of "visa hopping." These changes are leading students to consider alternative destinations such as Taiwan.
Students are opting for more affordable destinations
While the rise in education costs hasn't halted international mobility, it is reshaping where candidates choose to study. Instead of traditional favorites like Australia, Canada, the USA, and the UK, students are increasingly considering countries with more affordable tuition fees, such as Malaysia, Germany, the Czech Republic, Mexico, and Taiwan. For instance, the cost of a bachelor's or master's degree in the Czech Republic ranges from approximately 3,000 to 7,000 euros, comparable to Germany (around 5,000 euros at public universities) and Taiwan (between 3,000 and 4,500 euros on average). Additionally, the cost of living in these nations is generally lower than in major expatriation hubs.
In contrast, in the United States, the least expensive universities charge between 9,000 and 13,000 euros for a bachelor's degree on average, with top-tier institutions charging upwards of 90,000 euros. Australia offers slightly more affordable options, with tuition fees ranging from about 10,000 to 30,000 euros. In Canada, fees average nearly 24,000 euros, and in the UK, tuition can exceed 40,000 euros for an undergraduate degree. These figures do not include daily living expenses (rent, food, transportation), which are also escalating in these countries.
The crucial role of parental support in student mobility
Parental involvement is vital in supporting their children's decision to study abroad, as confirmed by various studies. A recent HSBC Quality of Life Report (2024) underscores the perspective of Indian parents, with nearly 78% favoring overseas education for their children. Key motivators for parents of all nationalities include exposing their children to new cultures, obtaining a reputable degree, and facilitating international integration. However, the study reveals that only 53% of Indian parents can afford the costs of their child's education. Additionally, 51% depend on international student scholarships, and 40% rely on student loans. Remarkably, about 30% of parents are prepared to sell their assets to finance their child's international studies.
International students and the job market
Parents worldwide, from Vietnam to the USA, Nigeria, Australia, and Brazil, recognize the value of international education for their children's future, seeing it as crucial given the evolving international job market. While this perspective is valid, parents sometimes tend to idealize the concept of moving abroad, assuming that a foreign degree will automatically open doors to well-paying jobs and companies, reflecting a belief in meritocracy and social advancement through academic achievement.
Yet, the reality can be quite different. Consider the disillusionment among foreign graduates in Canada, Australia, the UK, and France, who express growing frustration with their challenging integration into the job market. Recent immigration reforms have further hindered their ability to enter the workforce. This disconnect, often overlooked by parents, comes as a shock to students who rely on securing stable employment abroad to manage their student loans and integrate into the workforce, as criticized by student associations.
Financial planning before the move
With rising visa fees, health expenses, income requirements for study permits, increasing rents, and inflation, prospective international students need to secure more income to pursue studies abroad.
Applying for a scholarship
Several international mobility aid programs offer scholarships from various sources, including the student's home country, the host country, international organizations, or private entities. It's crucial to recognize that different types of scholarships may coexist within a single jurisdiction—state, regional, and community scholarships. These funds often vary according to the field of study, age, and student nationality. For example, certain scholarships might be earmarked for students in scientific fields, while others are designed for students from specific regions, like the Philanthropic Educational Organization (PEO), which supports women pursuing studies in the USA or Canada.
Students should apply for scholarships before their study visa is issued, as the availability of scholarships is typically lower than the demand and they are governed by strict deadlines and selection criteria. To enhance their chances, students are advised to apply for multiple scholarships, provided they meet the eligibility criteria and the scholarships can be accumulated.
Securing a part-time job before departure
The lockdowns during the pandemic significantly impacted students, who traditionally depend on part-time jobs to support their studies and living expenses abroad. With the ongoing global economic crisis still threatening their financial stability, students are increasingly seeking part-time employment before departure to cope with potential financial challenges, including legislative changes such as increased student visa fees in Australia and the doubling of the minimum income requirement for the Canadian study permit.
Although the economic crisis has led to labor shortages in highly competitive sectors like hospitality and retail (offering roles such as salespeople, cashiers, and waiters), securing a part-time job remains challenging in some countries. The crisis has heightened the demand for these jobs, attracting not only students but also other job seekers, particularly in countries like France.
Considering a loan for higher education
Taking out a loan is often seen as a necessary step for those aiming to attend prestigious universities. The issue of massive student debts in the USA and UK frequently dominates the news headlines, but the situation in Australia and Canada, though less publicized, is equally concerning.
Before committing to a loan, students must fully understand the terms: the interest rates, the duration of the loan, and the repayment conditions. These factors are crucial to ensure that they don't face overwhelming monthly repayments upon graduation, especially if they are still in the job market. It's important to note that some loan agreements may require interest payments to be made before repaying the principal. If the repayment plan is set to start after graduation, this arrangement means making interest payments during the period of study.
Useful links:
EducationUSA; #YouAreWelcomeHereScholarship: scholarships for international students
UK: aid programs for international students
Canada: international mobility programs
Australia: scholarships for international students
Erasmus+: international mobility scholarship
European Union: finding a scholarship
Japan: study scholarships
