UK universities struggling with funding as foreign students choose other countries

UK universities are renowned worldwide for their prestige, but visa restrictions are now causing a decline in the number of international students they attract, leading to significant financial challenges.

These restrictions, coupled with the impact of Brexit, are exacerbating the situation.

In 2022, nearly 760,000 international students were enrolled in British universities, making the UK the second most popular destination for higher education, after the United States, in a fiercely competitive global market. The majority of these students come from India, China, and Nigeria.

However, last year, the number of student visas issued dropped by 5%, with a 16% decline in visa applications from July to September compared to the same period the previous year.

This decline is concerning for universities, as international students contribute much more in fees than domestic students. For instance, Leo Xui, a 20-year-old from China, began studying population and health sciences at University College London in September. His annual fees are £31,000 (37,200 euros), while British students in England have paid a maximum of £9,250 for years.

The newly elected Labour government has announced that this cap will rise to £9,535 starting next year, a decision welcomed by universities that have been calling for an increase for years.

Universities UK (UUK), representing 141 British institutions, warned at its September conference that funding per student is at its lowest level since 2004. Due to inflation, UUK estimates that the £9,250 fee is now worth less than £6,000, leading to deficits in teaching and research.

“We are all feeling the crunch,” UUK President Sally Mapstone said at the conference.

As a result, many universities have turned to foreign students to fill budget gaps, making them financially dependent on this group. A parliamentary report found that foreign students comprise more than half of the student body at London’s University of the Arts and Cranfield University, a science and engineering institution located just north of London.

Some universities, such as York, have reportedly lowered their admission criteria to attract more international students, according to the Financial Times.

However, the previous Conservative government’s restrictions on student visas complicated the situation. As part of its efforts to reduce overall immigration, it banned foreign students from bringing family members, except in certain cases, and prevented them from switching to work visas during their studies.

Official statistics show that in the first four months of 2024, there were 30,000 fewer student visa applications from overseas compared to the same period in 2023.

“These hard numbers confirm our fear that the previous government’s changes have made the UK a less attractive study destination,” said Nick Hillman, director of the Higher Education Policy Institute think tank.

At Coventry University, where more than a third of its 30,000 students are from abroad, Provost Ian Dunn criticized the previous government’s policies as “destructive.” The university, like many others, was already impacted by Brexit, with the number of EU students dropping from 4,400 to just 10% of that number.

“We had 4,400 students from the European Union. Now we’re probably at 10 percent of that,” Dunn said, describing the situation as “difficult.”

A lecturer at another English university revealed that the decline in international students has worsened the crisis, leading to cuts in both teaching positions and courses.

“The drop in international students has dramatically worsened the crisis for us,” the lecturer said, speaking anonymously.

Some international students have opted for other English-speaking countries like Canada, Australia, and the Netherlands, where courses are taught in English.

Coventry University has responded by partnering with overseas institutions to open campuses in countries like Egypt, Morocco, India, and China. In these partnerships, students can earn a degree from Coventry University without ever setting foot in the UK, according to Provost Dunn.