A decline in international student numbers could negatively impact university finances and harm London’s broader economy, an education organization has cautioned.
London Higher reported that a single group of international students contributes £9.6 billion to the capital’s economy.
Home Office data shows a 14% drop in student visa applications for the 2023/24 academic year compared to the previous year.
At the University of East London’s (UEL) Docklands campus, students gather in the spring sunshine. UEL hosts 10,000 international students from 160 different countries across its three locations in Newham.
For many, studying in London requires a significant financial commitment from their families, as international students pay considerably higher tuition fees than domestic students.
Some students believe that high fees and visa costs outweigh the benefits of London’s multicultural environment and high earning potential.
Study-related visas make up nearly 40% of all immigration to London, with the largest numbers of international students coming from China, India, and Nigeria.
Joanna Fayemi, a final-year UEL student from Nigeria, noted that she and her peers often pay up to five times more than they would in their home countries for a degree, making the process financially challenging.
However, she believes the investment is worthwhile: “An international degree carries a lot of prestige back home, so it’s a valuable achievement.”
After completing their studies, international students can apply for a two-year graduate visa, but the associated costs can be substantial.
Akanksha Kumar, a graduate of City St George’s, part of the University of London, remained in London and now works as an account manager in marketing. However, she found job hunting discouraging as some employers withdrew offers upon learning she needed visa sponsorship.
“A lot of companies have strict quotas for visa sponsorship, which don’t match the large number of international students coming here,” Kumar explained.
Net migration—the difference between those arriving and those leaving—includes international students.
To reduce immigration, the UK government introduced reforms to student family visas at the beginning of the year. Under these changes, most international students can no longer bring dependents to the UK. Consequently, student family visa applications fell by 85% between 2023 and 2024, according to Home Office figures.
Samson Folarin, another graduate of City St George’s, returned to Lagos after completing his Master’s degree and now works as an editor for a well-known Nigerian newspaper.
Describing himself as a “passionate Nigerian,” Folarin emphasized the importance of his UK education in helping him hold his own government accountable. However, he acknowledged that the new visa rules make studying in Britain more challenging.
“For many international students, their dependents work while they study to help cover living expenses,” he said. “By restricting dependents, the UK is removing a vital support system.”
Between 2011 and 2016, the UK granted approximately 200,000 sponsored study visas per year. After 2016, numbers rose steadily, reaching 268,674 in 2019.
Following a drop during the COVID-19 pandemic, student visa issuance surged, peaking at 498,068 in the year ending June 2023. Since then, numbers have gradually declined, with 393,125 visas issued in 2024.
London, home to the highest concentration of higher education institutions in the UK, is expected to feel the economic effects of declining international student numbers.
Dr. Diana Beech, CEO of London Higher, warned that a drop in international enrollments could hurt university funding.
“Tuition fees from international students are essential for sustaining our world-class research sector and supporting less popular courses,” she said.
The decline may also have indirect consequences, such as reducing opportunities for students to develop soft skills in diverse classrooms.
Vanessa Varvas from UEL emphasized the importance of global representation in classrooms: “Exposure to different cultures prepares students for an increasingly interconnected world.”
Additionally, fewer international students could weaken trade links with emerging economies like India and Nigeria, which have young, entrepreneurial populations.
Varvas pointed out that returning graduates act as ambassadors for their universities, fostering future business, trade, and investment opportunities.
London’s mayoral growth plan acknowledges the critical role of universities in supplying highly skilled talent, stating:
“London’s universities are essential in attracting international students and ensuring a stable funding system.”
However, as the government faces mounting pressure to cut net migration, universities and the wider economy may continue to feel the impact of these policy changes.
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