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Fees from international students are forecast to become up to 66% of all course fee income for 70 higher education institutions across England & Northern Ireland by 2026/27, new research shows.

The Financial Sustainability of the UK Higher Education sector report, published by PwC and commissioned by UUK, found that “significant financial challenges” could impact quality provision and student outcomes.

Up to 80% of providers could fall into deficit if there is a gradual or sudden drop in international students in coming years. Inflationary pressures are an added worry for balance sheets.

Pressures are not evenly felt across the sector, but many providers are delaying investment in physical and digital infrastructure to protect cashflow, it says.

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