UK universities face financial risks as international student visa applications drop by 17% in 2024. New immigration policies, including restrictions on dependents, have contributed to the decline, leaving less-selective institutions vulnerable. Experts warn of nationwide economic impacts if recruitment numbers continue to fall.
A significant drop in visa applications from international students is raising alarms for universities in the UK, particularly in London. The Institute for Fiscal Studies (IFS) reports a 17.1% decline in applications for August 2024 compared to the previous year, continuing a downward trend throughout the year. Kate Ogden, a senior economist at the IFS, warned that universities have been relying on international student fees to offset reduced funding for domestic students. While many universities are financially stable, less selective institutions, heavily reliant on foreign students, may face significant challenges.
The decline is partly due to stricter government regulations, including a ban on overseas students bringing dependents, which has led to an 83% drop in applications from dependents. The Home Office stated that student visa applications typically peak in autumn, and the full impact of the changes will be clearer later in the year.
Dr. Diana Beech, CEO of London Higher, stressed the potential economic risks, particularly for universities in the capital. Established institutions are faring better, but smaller universities could face financial difficulties, posing broader economic risks. With nearly £11 billion in university income coming from non-EU students, the ongoing slump threatens to create financial instability in the sector.
Experts suggest that fewer international students could worsen the situation for less selective universities already struggling with fewer domestic applications, exacerbating their financial vulnerability.
