Published 24 Oct, 2024
International Students Face Fee Shock in Australia
Written By
West Ekhator
International students in Australia face a record increase in tuition fees as universities grapple with the government's new overseas enrolment caps.
According to Studymove, a leading consultancy firm, average tuition fees are expected to rise by 6.2% in 2024, a significant jump from 5.6% in 2018 and 1.5% in 2022.
Studymove director Keri Ramirez revealed that over half of Australian universities plan fee hikes between 6% and 8%, marking the highest annual average fee increase ever recorded.
"We are pretty much in emergency mode, and revenue is what matters," said Ramirez.
The government's new policy has divided universities into two camps:
60% of institutions, with the flexibility to increase international enrolments, focus on boosting their market share through scholarships and other incentives.
The remaining 40%, facing stricter enrolment caps, are aiming to maximize income by reducing onshore overseas student numbers and exploring alternative options like online and transnational education.
Ramirez expressed concerns about the market's ability to absorb such a fee increase. "Half of universities are increasing their fees by 6% or more," he said. "Is the market going to be able to cope with that? We don’t know."
The webinar also explored the impact of the government's international education crackdown, which began last October. While initial expectations were for a focus on integrity issues, the government instead implemented drastic cuts to student visa issuance.
Over the past 10 months, student visa issuance has decreased by approximately 38%, representing a loss of 180,000 student visas compared to the same period in 2022-23.
Visa grants for higher education have decreased by 25%, English language study by 50%, and vocational training by 66%.
Ramirez argued that the government has gone "too far" by implementing multiple policy changes without sufficient time to assess the impact of earlier reforms. He highlighted that the full effects of the most recent change, the reprioritization of visa processing under ministerial direction 107, have taken months to materialize.
Despite a surge in foreign student commencements in the first half of 2024, with an 11% increase compared to the same period in 2023, the number of new foreign students declined by the same margin in the second half of the year. This fluctuation is likely due to the government's Ministerial Direction 107, which has significantly impacted visa processing and issuance.
Studymove director Keri Ramirez warns that even if the government revokes Ministerial Direction 107 at the end of the year, as promised, visa delays and rejections could persist well into 2025. This means many universities may not enroll as many foreign students as their caps allow.
A separate study by the e61 Institute economics thinktank supports the government's mid-year decision to ban "visa hopping," which prevents foreign graduates from applying for student visas onshore after their post-study work permits expire. The study found that visa hoppers earned 20% less than other graduate visa holders and worked in lower-skilled occupations. Research manager Silvia Griselda believes this ban will not deter high-skilled migrants and will increase the number of international graduates who become permanent residents.
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