UK study visa drop: US student exodus fails to boost British universities

UK study visa applications drop: UK universities miss out on expected boost as visa rules and policy changes deter international students

The declining attractiveness of the US as a study destination has not brought the expected gains for British universities. Applications for UK study visas fell in August, as new immigration rules appear to be deterring international students just when cash-strapped universities need them most.

 

According to UK Home Office data released on Thursday, 120,100 visa applications were submitted by international students in August — a drop of 1.5 per cent from the same month last year and an 18 per cent fall from August 2023.

 

August usually accounts for around a third of annual student visa applications, as students finalise plans ahead of the academic year. The dip comes at a critical time for the higher education sector, which has already seen widespread job cuts, campus closures and course reductions.

 

 

Universities seek radical fixes

 

The numbers were published a day after the universities of Greenwich and Kent announced plans to merge, forming the UK’s first “super university” in an attempt to secure their financial future. The proposed London and South East University Group, if approved, would be among the largest in the country.

 

More than 40 per cent of UK higher education institutions are forecasting a deficit for the 2024–25 academic year, according to figures released in May. The Department for Education said the Greenwich–Kent merger “shows how strong partnerships in higher education can help enable delivery of world-class teaching and research whilst maintaining the best interests of students”.

 

International students, whose tuition fees help plug funding gaps left by declining public support, have become essential to university finances. But their numbers are under pressure following a tightening of immigration rules introduced under the previous Conservative government.

 

“Income has been falling and costs going up. To adapt, we see university leaders thinking about how you can do things differently to be able to grow and thrive in the future,” said Vivienne Stern, chief executive of Universities UK, in comments to the BBC.

 

White paper plans fuel more uncertainty

 

Expectations that more students might choose the UK as the US saw political turbulence — including Donald Trump’s attacks on universities — have so far not materialised. Instead, the UK government’s recent immigration white paper has added further uncertainty.

 

The proposed changes include:

 

< A 6 per cent levy on international fee income

< A reduction in graduate visa stay from 2 years to 18 months

< Stricter visa approval thresholds for institutions

 

From this month, universities must keep visa refusal rates below 5 per cent to retain their sponsorship licence, down from the previous 10 per cent. They also face penalties if fewer than 95 per cent of international students begin their course or if less than 90 per cent complete it.

 

Mark Bennett, vice-president of research and insight at Keystone Education Group, said policy ambiguity may be delaying decisions. “Uncertainty over graduate visa changes could have caused prospective students to delay applications,” he told the Financial Times.

 

He also noted that institutions may be more cautious about accepting students from countries with historically higher visa refusal rates. “If the UK wants to maintain its appeal and benefit from uncertainty elsewhere, it will be important to provide clarity on upcoming white paper changes — including timelines for implementation,” he added.

 

Deportation threats and asylum claims rise

 

In another move, the Home Office has begun sending texts and emails to warn international students that they could face deportation if they overstay their visas. Officials cited an “alarming” rise in student visa holders applying for asylum, often just before their leave expires.

 

In 2024, 16,000 asylum claims were linked to those who had initially entered the country on student visas. Some of these applicants were later housed and supported with taxpayer funds, the department said.

 

Universities failing to meet the government’s attendance and completion thresholds may also lose the right to enrol foreign students.

 

Speaking at the launch of the OECD’s Education at a Glance report this week, skills minister Jacqui Smith said the UK would continue to welcome “genuine, high-quality students” but called on the sector to improve standards.

 

A government spokesperson added on Thursday, “That’s why we’re tightening the rules to ensure those coming here are genuine students and education providers take their responsibilities seriously.”

 

Further announcements are expected in the upcoming white paper on skills.