Indian students turning to US as Canada, Australia, UK tighten rules

Indian students, who have long sought education opportunities in countries like the United Kingdom (UK), Canada, Australia, and the Netherlands, are now facing a growing number of obstacles. Recent policy changes and restrictions in these countries are creating uncertainty and anxiety among prospective international students, particularly those from India. But what exactly is happening, and how are these changes impacting students? Let us break it down.

Tightening immigration rules: What’s happening?

In recent years, several countries have been tightening their immigration rules, directly impacting international students. Here's a look at some of the significant changes:

United Kingdom

The UK has long been a favourite destination for Indian students. However, recent policies are making it more challenging. The Labour party, while in opposition, vowed to retain a ban on international students bringing dependents to Britain. This rule has been a significant deterrent for many students who had hoped to bring family members along during their studies.

Canada

Known for its welcoming approach to international students, Canada is now implementing stricter measures. The government is clamping down on what it calls “puppy mill” colleges, leading to the closure of several programs. Additionally, new regulations include a cap on student visa issuance and the removal of incentives like post-graduation work permit eligibility.

Australia

Similar to Canada, Australia is also imposing restrictions. New student visa settings and a cap on international enrolments will come into effect in January 2025. The government is targeting “dodgy providers,” leading to increased scrutiny of private colleges.

Netherlands

The Dutch government is considering restrictions on foreign students’ access to universities, with a focus on reducing international enrolment in English-taught degrees. This move is part of a broader trend in Europe, where anti-foreign sentiment is on the rise.

Numbers show the impact

According to data from IDP Education, a Sydney-listed student placement services and testing company, visa applications to the UK, Canada, and Australia have dropped by 20 to 30 per cent in the first quarter of 2024 compared to the previous year.

IDP expects the international education market to contract over the next year due to these restrictions. If current trends continue, the number of new international students starting their studies in IDP's key markets could decline by 20 to 25 per cent by 2025.

What does this mean for Indian students?

For Indian students, these changes represent a significant shift. Historically, students from India have flocked to these countries, drawn by the promise of quality education, better job prospects, and the opportunity to settle abroad. However, with new visa restrictions and enrolment caps, these dreams are becoming harder to realise.

Anuj Gupta, CEO of Youngrads says, “Indian students are now hesitant to apply to UK universities for a Master’s degree due to stricter visa regulations implemented earlier this year. These regulations particularly affect their ability to sponsor family dependents, spouses, or children, as well as preventing students from switching to work visas until they finish their studies.”

The shift in preferences

While countries like the UK, Canada, and Australia are tightening their rules, the US seems to be benefiting from the situation. According to an IDP survey of more than 11,500 prospective and current international students, the US has surpassed Australia as the preferred study destination. American universities enrolled nearly 269,000 students from India, AP reported in March 2024, with that number soaring, including a 35% increase in the 2022-23 academic year, India is on the verge of replacing China as the largest international presence on US college campuses.

Moreover, approximately half of the best global universities are located in the US, according to US News & World Report. From undergraduate studies to PhD-level programmes, universities in the US offer top-ranked academic opportunities across all disciplines

Economic considerations versus political reality

Despite the economic benefits of attracting international students, political realities are driving the policy changes in these countries. In the UK, the previous government’s measures to ensure that the education sector was not used as a gateway to immigration are being reviewed by the new Labour government.

Chris Bryant, Labour’s shadow minister during the campaign, assured that the party wouldn't reverse the ban on foreign students bringing dependents to the country if elected. However, UK Secretary of State for Education Bridget Phillipson recently stated that “for too long international students have been treated as political footballs, not valued guests,” emphasising that international students are welcome in the UK.

Netherlands

The situation in the Netherlands is particularly striking. Once known for its openness to foreign students, with many courses offered in English and a significant proportion of the student body being international, the country is now pulling back.

The Dutch government, supported by a coalition that includes the far-right, is pushing for a policy to limit international student enrolment, particularly in English-taught degrees.

Universities facing overcapacity have already decided to reduce international enrolment, and a bill is pending that could further restrict the number of foreign students allowed into the country.

Large Dutch companies, which rely heavily on skilled foreign talent, are raising concerns about these restrictions.

There is a growing fear that these policies could drive companies to move their offices out of the Netherlands, potentially harming the country’s economy.

Canada’s crackdown on “puppy mill” colleges

In Canada, the situation is a bit different. The government’s crackdown is primarily aimed at lesser-known, smaller colleges, which have been allegedly accused of exploiting international students. However, this has broader implications for the international student community.

The new regulations, which include a 35 per cent reduction in student visa issuance and the removal of post-graduation work permit eligibility for certain colleges, are causing concern among students and educators alike.

Colleges Ontario, representing the province’s 24 public colleges, reported a “collapse” in the spring cohort, with significant financial losses expected in the fall term. The organisation warned that these losses could lead to immediate program suspensions and a halt on capital investments, according to a report by Bloomberg.

Australia: Higher stakes, higher costs

Australia’s situation is perhaps the most severe. International students contribute significantly to the country’s economy, with an estimated A$48 billion ($31.6 billion) generated in 2023. However, the new policies could jeopardise this revenue.

The Australian government’s plans include enrolment limits for individual universities and housing construction requirements. Additionally, international students are facing tougher English language standards, and visa rejections are becoming more common. The doubling of visa application fees to A$1,600 has made Australia the most expensive country for international students.

These changes have already led to an increase in insolvencies in Australia’s education and training sector, with a nearly 90 per cent jump in June 2024 compared to the previous year. The opposition has promised even stricter limits, reflecting the growing sentiment against rapid immigration.

Where do Indian students go now?

Given these challenges, Indian students are increasingly looking at alternative destinations. While the UK, Canada, and Australia remain popular, the US and Canada continue to attract the largest numbers of Indian students.

According to a study by brokerage Anand Rathi, the US and Canada together account for 34 per cent of all international students enrolled during the first half of 2023. The UK follows with 13 per cent, Australia with 12 per cent, and France with 7 per cent.