HEPI has published the third version of its analysis of the economic benefits of our universities hosting overseas students. It finds a substantially increased gross benefit, £41.9 billion, to the UK economy arising from the 2021/22 cohort. This is associated with a rise in overseas student numbers of 40% in the last 3 years. Universities UK reports that international students make up 23.8% of the total student population in 2021/22 (15.1% of undergraduates and 45.4% of postgraduates). This is not evenly distributed across subjects, with 46.2% of business and management students from overseas. Further, it is not evenly distributed across universities. For example the Complete University Guide shows percentages of first degree students as high as 54.3% at UCL, putting home students in the minority.
The growth in overseas student numbers is not a result of an altruistic view that it is a good thing for the country in terms of future overseas influence. Solely or at least primarily, universities have recruited high fee overseas students as compensation for perceived insufficient funding for home students. The Guardian reports on the dependence of universities upon overseas student income. The concentration on subjects such as management and upon two countries (China and India) raises questions about over-reliance on potentially risky sources of revenues. Recent government proposals for curbing immigration add further uncertainty.
Much of the discussion has centred on the idea that British students are being squeezed out by less qualified (but higher-fee paying) overseas students. Consistent with this hypothesis, the Financial Times reports that non-EU students get lower degree outcomes.
