UK universities facing funding issues as foreign students go elsewhere

Tuesday, November 12, 2024 - UK universities, known for their global prestige, are experiencing significant financial pressures due to declining international student numbers amid strict visa regulations.

These restrictions, coupled with issues from Brexit, are deterring overseas students and impacting university funding.

In 2022, around 760,000 international students were studying in the UK, with most from India, China, and Nigeria, making the UK second only to the US in popularity. However, visa approvals dropped by 5% last year, with a 16% drop in applications between July and September compared to 2022. This decline is critical for universities that rely heavily on the higher fees international students pay; British students have a fee cap of £9,250, while non-EU students can face fees as high as £31,000.

The recent Labour government decision to raise this cap to £9,535 next year was welcomed by Universities UK (UUK), representing 141 institutions. Still, this move offers limited relief as inflation erodes the value of student funding, which is now at its lowest per-student level since 2004. In September, UUK President Sally Mapstone expressed that universities are “feeling the crunch.” As a result, many universities increasingly depend on foreign students to balance budgets, with international students comprising over half of the student population at institutions like the University of the Arts London.

However, visa restrictions imposed by the former Conservative government complicate recruitment. Foreign students are barred from bringing family members or switching to work visas during studies, policies designed to curb immigration. Applications from international students dropped by 30,000 in early 2024 compared to the previous year, with many opting instead for countries like Canada and Australia.

Brexit’s impact has been particularly evident at Coventry University, where EU student numbers have plummeted by 90% since Brexit. To counteract this trend, Coventry and other institutions are establishing partnerships abroad. Coventry has opened campuses in Egypt, Morocco, India, and China, allowing students to earn Coventry degrees without visiting the UK. This international expansion could help mitigate declining enrollments, but concerns persist as the UK’s restrictions may permanently affect its appeal as a study destination.