Indian students bankroll global universities, US to UK and Canada

Visa rejections undermine global education system, pinch institutions financially

International students are a pillar of the global education economy, but they face hurdles as visa rejection rates soar in major countries. Denials in the United States (US) hit a 10-year high in 2023-24, when 41 per cent of foreign student visa applications were rejected. Canada’s student visa rejections increased from 38 per cent in 2023 to 52 per cent in 2024, raising concerns about the financial sustainability of universities that rely on international tuition revenue.

 

Indian students make a meaningful contribution to the US economy. Their share in contributions made by all international students rose from 17.3 per cent in 2019-20 to 23.6 per cent in 2023-24, while their share in tuition and fees grew from 17.2 per cent to 23.6 per cent. In absolute terms, their contribution surged from $7.6 billion in 2019-20 to over $11.8 billion in 2023-24.

 

International students contributed nearly $50 billion to the US economy in 2023-24, with 51 per cent of the amount coming from tuition and fees. Indian students accounted for nearly a quarter of this economic contribution, underscoring their importance for the American higher education system. 

 

A staggering 75.8 per cent of all foreign students pay tuition fees directly from their own resources: 54 per cent from personal and family savings and 21.8 per cent from employment. It shows that these students are not a financial burden on the US education system but rather a crucial source of funding for universities.

 

In Canada, foreign students contribute nearly 40 per cent of total tuition fee revenue, making them an indispensable source of funding for the country’s universities.

 

In the United Kingdom (UK), foreigners made up 23.7 per cent of the total student population in 2022-23 but their contribution to tuition and fees was disproportionately high at 53 per cent. Between 2016-17 and 2022-23, their share in overall student population increased by 10 percentage points but their share in tuition revenue surged by 16 percentage points.

 

The cost burden on international students compared to local peers in major study destinations varies. In the US, international students pay tuition fees that are on average 200 per cent higher than what American citizens do. The disparity is greater in Canada, where international students pay 430 per cent more than their local counterparts. In the UK, international students face a 150 per cent higher tuition fee. The numbers highlight the financial strain on foreign students and the reliance of universities on their tuition contributions. 

 

Indian students are a dominant force in global higher education. In the US, their share in total international students has grown from 17.9 per cent in 2019-20 to 29.4 per cent in 2023-24. Indians are becoming the largest demographic among international students in American universities. 

 

Indian students make up a significant share of the international student population in Canada as well, contributing heavily to tuition revenue.

 

In the UK, Indian students overtook the Chinese for the first time in two decades in 2022-23. There were more than 125,000 Indians that year, comprising 16.7 per cent of all international students, the highest proportion for any nationality.

 

As visa restrictions grow, the future of global student mobility becomes uncertain and has potential long-term consequences for higher education institutions and the economies that benefit from it.