Challenges for Australian Universities: The Sharp Decline in Indian Student Applications

October 5, 2024
Challenges for Australian Universities

Mounting challenges for Australian universities – applications by Indian students have crashed by a staggering 66%. This raises grave concerns about the future of Australia in international education. The drop is part of a larger pattern of fewer overseas student applications from July as tougher rules and higher fees have been enforced.

This steep decline portends long-term consequences for a country that has long reaped the benefits of international students arriving on the shores of its land, most notably Indians.
In this blog post, we explore the main drivers for Indian student applications and how the changes implemented by the Australian government are altering the face of higher education.

Australia's New Policy Changes Alter Indian Student Applications

Australia’s decision to increase financial requirements for international student visas seems to have played a big role in a sharp drop in applications from India. International students now need to bring in a minimum savings of AUD 29,710 (approximately USD 19,576) to qualify for a student visa as of May 2024. This marks the second increase in under a year, following a previous rise to AUD 24,505 in October 2023.

Indian students are facing a tough challenge at present in finding destinations for their study abroad, due to which the cost burden on them has increased. Because more costs are incurred in Australia, the middle class in India cannot come here to this country for higher education, and thus some of them look for cheaper options elsewhere.

Indian Student Applications Dips

Sharp decline in Indian student applications rang alarm bells for universities in Australia. While this has been Australia’s second-largest source of international students for years, the 66% decline in applications may spell severe financial losses for educational institutions that highly depend on foreign students for income generation.

This is not India-specific; student applications from other South and Southeast Asian countries have also plummeted similarly, especially in vocational education sectors, where offshore applicants have plummeted to one-fifth of last year’s applicant numbers.

How English Language Requirements and Financial Pressures Add to the Challenge

In addition to the financial barriers, the Australian government set higher standards for English language proficiency in students of student visa holders. This further exacerbated the challenges faced by non-native English-speaking students—Indians—in searching for a place in universities in Australia. Altogether, living costs that have increased and tuition fees may make it challenging for international students to access institutions in Australia.

In controlling a record number of migrants entering the country, the Australian government has managed to crack down on international students. Still, these measures have been part of an even broader effort to deal with problems of student exploitation.

The message conveyed by the stated aim of these reforms—the desire for a controlled yet sustainable system—is that it has unobtrusively kept many from coming to apply. Forthcoming policies aimed at creating a better system may be hurting Australia’s international education sector.

Australian Government's Crackdown on International Students

Due to the government crackdown on international students of Australia, numerous repercussions have been caused. Not only is it more financially strait and having stricter tests on the language, but it has also brought policies in not letting students stay in Australia for longer than they set out by closing visa loopholes. Although these measures are meant to push in solutions for issues related to migration as well as exploitation, they are deterring many from looking at Australia even as a place of education.

Consequences for Australian Universities

The extreme fall in applications by Indian students may act as a financial stress on Australian universities. International students generate significant income to the tertiary education sector through the payment of fees for tuition, accommodation, and sometimes living costs. At a whopping 66 percent decline of applications by Indian students and a total number of applicants in the international students category being cut down by almost half, there seems to be scant hope for different Australian universities.

The educational institutions are already sounding an alarm regarding the impact of these changes on their global competitiveness. Some of the countries, like Canada, the UK, and the U.S., present the most flexible visa policies combined with affordable options to study there. Australia may thus be crossed out as a number one destination for international students.

Challenges to Australian Universities

This marked drop in applications presents a challenge to the universities in Australia because these largely rely on international students to support their education and financial systems. When the few students convert into applicants, universities must either reconsider their charges or distribute much scholarship funds or even campaign for policy change for them to be attractive in the global education market.

Conclusion

A combination of factors has helped to drastically reduce the number of Indian students applying for visas to Australia. This includes increased financial requirements, tighter visa policies, and the adoption of more stringent standards for English language proficiency. Although these policies had been directed towards reversing the exploitation of students and some migration concerns, they have inadvertently put Australia out of reach for students from countries like India.

The country would need to rethink some of those decisions if it is to continue being the destination of the highest quality overseas students. Otherwise, Australia runs the risk of losing a significant proportion of the overseas student market to those countries that can offer more flexible and affordable study options.

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