No "Bounce" In International Student Applications Fuels Concern For University Finances

Universities did not receive a “bounce” in overseas applications after the graduate visa row was resolved, an industry expert has said, further fuelling fears that higher education institutions could be facing "big trouble" financially.

Vivienne Stern, chief executive at Universities UK, told PoliticsHome that the sector had been "hoping that we'd see a bit of a bounce in visa issuance after the argument with the last government over the graduate route was concluded", but it has not materialised.

There is growing concern that university finances could come under increasing strain in the coming months after changes to the visa rules around international students.  

Stern told PoliticsHome universities could find themselves in “big trouble really fast” if their income from international fees sees any kind of “collapse”. 

Towards the end of the last Conservative government, former prime minister Rishi Sunak considered scrapping the graduate visa route altogether in a bid to drive down overall net migration figures.

The suggestion triggered a backlash from university leaders. They warned that the visa, introduced by Tory ministers in 2021, is an important element of the UK's attractiveness as a place to study. It allow overseas students to stay in the country for up to three years after completing their studies.

It is also regarded as a major contributor to university finances, as international students pay larger fees to study in the UK than their British counterparts.

Speaking to PoliticsHome, Stern said scrapping the graduate visa would have had a “very very significant” effect on international student applications. 

And while that did not happen, with Sunak ultimately dissuaded from taking the step, an anticipated "bounce" when