UK universities’ income increasingly relies on international students, with one in every five pounds received last year coming from overseas tuition. This financial dependence on overseas students, who pay higher fees than domestic students, raises concerns about the sustainability of universities that heavily rely on income from a single country’s student population.
View / Download the complete report here
The significant economic contribution of international students to UK universities has recently been spotlighted in an analysis by The Guardian, raising concerns about the sector’s mounting reliance on overseas tuition.
Based on data from the Higher Education Statistics Authority, the report revealed that international students accounted for one in every five pounds received by U.K. universities in the previous academic year. It further emphasized how crucial these higher fees have become to the financial stability of many universities, as the rush to allocate academic places is set to begin.
The report indicates that some institutions now depend on international tuition fees for more than a third of their total income. Notably, renowned institutions like the Royal College of Art and the University of the Arts London reported that over half of their total income in 2021-22 came from EU and non-EU students, marking a significant rise from 2016-17.
The global appeal of UK universities appears to be growing, as indicated by the 48 percent increase in international students over the past six years. Despite a 14-percent drop in EU students, countries like India and Nigeria have shown considerable increases in student numbers, with China dominating, making up nearly a quarter of all international students.
However, this dependence on overseas fees has raised concerns among regulators. The Office for Students, England’s higher education regulator, has questioned the sustainability of universities that heavily rely on a single country’s student population.
As overseas tuition fees have risen by 71 percent in the past six years, their contribution to universities’ total income has also increased from 15.6 percent in 2016-17 to 21.5 percent in 2021-22. Meanwhile, the proportion of income from UK student fees has seen a slight decrease.
The report exposes the financial tension between domestic and international student recruitment, with domestic tuition fees capped at £9,250 ($12,105), and suffering from inflation. On the other hand, an international undergraduate pays an average fee of £22,000 ($28,791) a year, providing a significant financial buffer for universities.
Despite the economic benefits, critics warn of the precarious reliance on overseas student income. Institutions like the University of Central Lancashire and Sheffield Hallam University, which have seen drops in Chinese student numbers, might face financial stress. Meanwhile, the surge of Indian and Nigerian students contributes to an evolving landscape of international education.
Graphic Source: The Guardian. Data Source: HESA. Note: 155 publicly funded UK Higher Education Institutions
Universities UK, representing 140 institutions, reaffirms the essential contribution of UK students, who constitute 85 percent of all undergraduates. The rise of international student numbers, especially in postgraduate courses, enriches universities and communities. They advocate for a more sustainable approach to higher education funding, ensuring quality education while offsetting inflation’s impact.
While international students undeniably contribute to the diversity, vibrancy, and financial stability of UK universities, striking a balance between domestic and overseas recruitment remains a challenging task. The evolving dynamics necessitate an effective contingency plan to mitigate risks associated with over-reliance on international tuition fees.
Subscribe to the MSM Reporter Newsletter today and stay informed with the latest international education news.
