Why universities are headed for a reckoning

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Why universities are headed for a reckoning
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Half the students at Sydney and Melbourne universities are now from overseas. A decade ago, this figure was 25 per cent. But cuts are coming, and for some it’s a matter of survival.

with flow-on effects to the budget’s bottom line, skill shortages, the viability of hundreds of education institutions, unemployment and the research and innovation sectors.

It’s also, from the government’s perspective, about quality. For decades, getting an Australian qualification has been a big step towards getting permanent residency. Just being in the country provides access to the labour market. Since 2003, when the first university rankings list began with the Chinese-based Academic Ranking of World Universities, the need for revenue has increased because making it into the top 100 requires a world-class research program, and research is expensive.

Under the 235,000 net migration scenario, new students would fall to numbers not seen in decades. In 2023, 561,162 new international students started a course, a record.suggests Dutton’s stated ambition of reducing net migration to 160,000 people a year would mean new student enrolments would have to fall to between 10,000 and 15,000 a year.

“The whole funding system of Australian higher education and our research capability is dependent on the flow of international students,” Scott says. Under Labor’s plan, universities will be allowed to go over their cap if they have plans in place to increase the amount of student accommodation they have in the pipeline.

In 2022, just 1020 international students were enrolled at the University of New England, while 37,000 opted for Sydney University. More than two in every three choose to study in Sydney, Melbourne and Brisbane.The importance of international students to the economy was fleshed out in a research report from National Australia Bank in March, which found they contributed about

The current situation has been a decade in the making, with the mix of overseas student enrolments changing dramatically. Analysis byeveals that, in 2012, the Group of Eight universities, such as Sydney and Melbourne had an international cohort of 20 per cent to 25 per cent. In researching where to study, Somboonporn considered the UK and Singapore, but opted for Australia because it was where his parents had spent a few years on a medical fellowship in Melbourne when he was young.“Australia has a very good education system. And it’s a nice place; it’s a mixture of western and Asian cultures, so I feel more like at home here,” Somboonporn says. And despite a cost-of-living crisis, it’s cheaper than the UK and most of Europe.

By the late 1980s, Bob Hawke and his education minister John Dawkins decided to dramatically expand the number of young Australians going to university.By the late 1980s, when Bob Hawke and his education minister John Dawkins decided to dramatically expand the number of young Australians going to university, it was realised that the emerging middle classes of Asia were willing to pay for a degree in an English-speaking country.

The cancelling of the so-called COVID visa, stricter policing of poachers and dodgy agents and colleges, rising visa rejection rates, stricter rules around English-language proficiency and money in the bank, and a raft of other policies started to deliver results towards the end of the year, when Home Affairs Minister Clare O’Neil announced even more restrictions.By March, new arrivals hit a 10-year low and departures were at five-year high.

But in the post-COVID world, demand for an education from an English-speaking destination is outstripping supply. While some predict numbers will plateau, others say that is unlikely.

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