Regional University International Student Enrollment at 40%: Hit Hard by Visa Rejection Rates and Policy Uncertainty

Regional University Enrollment at 40%, Growing Gap with Metropolitan Areas

Australian universities are failing to fill their allocated international student quotas, with regional universities facing particularly severe circumstances. According to figures released by the Department of Education in October, the university average enrollment rate stands at 67%, with only five public universities filling over 80% of their quota, all located in metropolitan areas.

Mike Ferguson, Vice-Chancellor of Charles Sturt University with campuses in regional New South Wales, revealed that this year's quota enrollment rate reached only 40%. This represents a 35% decrease from last year, and compared to pre-COVID levels, international student numbers have declined to just 20%. The university estimates losses at $35 million from the gap between pre-COVID and current international student enrollment, and has announced workforce reductions and restructuring in response.

53% Visa Rejection Rate for South Asian Applicants

Ferguson identified government policy as the cause of the sharp enrollment decline. He explained that visa application fees increased to $2,500, visa rejection rates rose, and uncertainty grew as the Coalition and One Nation announced policies targeting international students.

Regional universities primarily recruit students from South Asian countries, where visa rejection rates reach approximately 53%. Ferguson stated, "Not only are we losing genuine students, but the fact that they must pay world-leading visa application fees with only a 50% chance of receiving a visa acts as a powerful deterrent to new applicants."

Higher education expert Professor Andrew Norton analyzed that declining international student numbers affect all public universities. Universities cross-subsidize teaching and research activities with international student tuition fees. Norton explained, "It creates major problems because international students are basically the only revenue-generating sector in university operations."

Proposal for Regional Skills Visa

Duncan Bentley, Vice-Chancellor of Federation University located in regional Victoria, revealed he is requesting a special regional skills student visa from the government. This visa would give priority to international students pursuing courses in essential fields such as health professions or education.

Bentley stated, "I have long supported and requested measures prohibiting course changes for 12 months except in exceptional and genuine circumstances," and explained, "The criteria for this regional visa would allow any overseas student wishing to study at a regional university to access the special visa, provided the course is included on the regional skills shortage list." This is based on the premise that domestic regional graduates alone cannot meet demand.

George Williams, Vice-Chancellor of Western Sydney University, warned that his university also faces declining international student numbers, and financial deficits could impact domestic students. "It has a huge impact on the budget, and universities are considering where they can cut costs and reduce operations." Williams added that at his university, international students heavily subsidize domestic students, placing real pressure on services that can be provided to domestic students.

Williams also stated that heated political debate is deterring international students, "making them question whether they will be welcomed in Australia."

The University of Adelaide revealed in a September interview with ABC that following its merger with the University of South Australia, it filled only 60% of its international student quota, potentially facing a $90 million revenue shortfall.

Government Targets and Skills Workforce Concerns

The government's 2026 international student planning level is set at 295,000, but current trends point toward 250,000. This barely exceeds the 240,000 level proposed by the Coalition.

The Labor government plans to reduce the number of international students who can bring family members during their studies, while the Coalition has pledged to abolish temporary graduate visas.

Phil Honeywood, CEO of the International Education Association of Australia, expressed concern that declining international student numbers in regional areas could lead to essential skills shortages. "The high non-refundable visa fees are making the system like a lottery," and explained, "Regional communities don't have enough nurses, childcare educators, aged care workers, or engineers, and if international student numbers in these regional areas decline and they cannot stay after obtaining degrees, cascading skills shortages will occur."

View original: The Guardian