UK universities are facing financial difficulties as a significant decline in international student numbers puts a strain on their budgets.

Applications from Indian students fell by 20.4% in 2023-24 compared to the previous year, according to a report by the Office for Students (OfS).

The OfS report revealed a sharp decline in the number of Confirmation of Admission to Study (CAS) issued to Indian students, from 139,914 to 111,329. This has raised concerns as Indian students, who have recently outstripped Chinese applicants, are a major source of income for UK universities.

There are various factors that deter Indian students from applying. These include: restrictions on bringing in dependentslimited job opportunities and concerns about security, especially after anti-immigrant riots in some cities.

Sanam Arora, President of the National Indian Students and Graduates Union (NISAU) UK, said: “Many reasons have contributed to the decline in numbers, including the Conservative Party’s ban on dependents, confusion around post-study work visas, an increase in skilled worker salary thresholds.” and there is a distinct lack of jobs in the UK.”

FINANCIAL IMPACT ON UNIVERSITIES

The decline in other international students such as Indians and Nigerians (down 44.6%) is impacting universities that are heavily reliant on this demographic.

The OfS warns that unless universities take significant mitigation measures, the sector could face a net income reduction of £3.4bn by 2025-26 and providers could be operating at a deficit of up to 72%.

The financial crisis has been made worse by Brexit and inflation. The tuition fee cap for domestic students, unchanged since 2017, is significantly lower due to rising costs.

Although the New Labor government recently raised the cap to £9,535, it falls far short of closing the funding gap.

STUDENTS CHOOSE OTHER DETAILS

Britain’s loss appears to be other countries’ gain. Canada, Australia and the Netherlands attract students who value affordability, job opportunities and visa-friendly policies.

“The decline in international students has dramatically worsened the crisis for us,” a UK lecturer said on condition of anonymity.

Ian Dunn, Chancellor of Coventry University, highlighted this challenge by stating that European student numbers have fallen since Brexit. He also stated that many universities are exploring overseas campuses as a solution, and Coventry University operates in Egypt, India and China.

Experts suggest universities need to address security concerns, clarify post-study work visa policies and improve employability support to remain competitive.

As Amit Tiwari, President of the Indian National Students Association (INSA) UK, puts it, “Unless the government finds solutions to these problems, the outlook for UK universities, which are heavily dependent on Indian students, will be bleak.”

(With input from institutions)