UK Universities Struggle With Funding Crisis As International Students Opt For Alternative Destinations

United Kingdom: UK universities, long known for their global reputation, are facing financial strain as a decline in international student numbers threatens their funding.

The drop comes amid tighter visa regulations and the lasting effects of Brexit, which have led many overseas students to reconsider the UK as their study destination.

In 2022, nearly 760,000 international students were enrolled in UK institutions, with a large proportion hailing from India, China, and Nigeria.

This positioned the UK as the second most popular destination for international students, just behind the US.

However, the latest figures show a troubling trend, with visa approvals falling by 5% last year and a sharp 16% drop in applications between July and September compared to the same period in 2022.

For universities, this decline is particularly damaging, as international students contribute to their revenue, paying fees that can reach up to £31,000 for non-EU students.

In contrast, domestic students face a fee cap of £9,250. As fewer foreign students choose the UK, institutions are left with a funding gap, exacerbating the financial pressures already faced by the sector.

AFP reports that the Labour government’s recent decision to increase the student funding cap to £9,535 next year has been welcomed by Universities UK (UUK), which represents 141 institutions.

However, this move offers limited relief, as inflation continues to erode the real value of student funding, now at its lowest per-student level since 2004.

In September, President Sally Mapstone highlighted that universities are “feeling the crunch.”

As a result, many institutions are increasingly reliant on foreign students to balance their budgets.

At universities like the University of the Arts London, international students now make up more than half of the student population.

Yet, visa restrictions introduced by the previous Conservative government are complicating recruitment. The policies prevent foreign students from bringing family members or switching to work visas during their studies, aiming to reduce immigration.

In early 2024, applications from international students dropped by 30,000 compared to the previous year, with many choosing countries like Canada and Australia instead.

Brexit’s impact has been particularly severe at Coventry University, where the number of EU students has fallen by 90% since the UK left the EU.

To counter this, Coventry and other universities are forming international partnerships.

Meanwhile, coventry has launched campuses in Egypt, Morocco, India, and China, allowing students to earn Coventry degrees without coming to the UK.

However, the global expansion may help offset declining enrollments, concerns remain that the UK’s visa restrictions could permanently harm its reputation as a study destination.