Researchers from the University of South Australia have conducted new analysis, that found no relationship between international student numbers and rising rental costs for local residents.
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Researchers from the University of South Australia have conducted new analysis, that found no relationship between international student numbers and rising rental costs for local residents.
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Since the pandemic, China has experienced a surge in new study abroad companies, particularly in Tier 2 and Tier 3 cities. Consultancies such as Bonard and Sunrise have each confirmed a notable increase in new agency incorporation these past several years.
However, the total number of students has not recovered as expected post-Covid. This, coupled with the emergence of international education programs in the market, such as foundation courses and 2+2 programs in the public and private sector, has meant that many established study abroad agents are struggling to survive due to rising management costs.
Consequently, the market looks challenging, increasing the difficulty of student recruitment for foreign institutions that traditionally rely on agencies.
Challenges for established agencies
This rapid market expansion has presented challenges for even well-established agencies. Many are struggling to adapt to the changing dynamics. For instance, a prominent agency reported that many of their counsellors are earning minimal salaries due to declining client numbers and difficulties in securing new business. This highlights the increasing pressure on agencies to remain competitive in this rapidly evolving market.
Fundamentally, the challenges for established agencies arise from cost and revenue pressures. Costs include tax, venue, human resources, and promotions, with human resources and promotion being the most critical.
Agencies need professional personnel to maintain service standards and capacity in the labour-intensive study abroad industry. Promotion methods have changed rapidly in the past five years. Social media platforms and short-form video platforms have gained prominence, often becoming more important than search engines and other traditional methods.
Fundamentally, the challenges for established agencies arise from cost and revenue pressure
Furthermore, these new marketing channels tend to favour personal profiles over organisational accounts. This is largely due to the platforms’ recommendation algorithms. Moreover, many counsellors are not comfortable appearing on camera, despite possessing extensive experience and professional knowledge, they lack the skills and topics to capture audience attention.
On the revenue side, acquiring customers is even more difficult than in the pre-Covid period. Customers are becoming more price-sensitive and are increasingly willing to work with smaller study abroad studios for personalised services.
The impact of enhanced information accessibility
The rise of digital platforms has fundamentally altered the information landscape for prospective students. With readily available information on social media platforms such as WeChat, Redbook, and TikTok, students and parents are now empowered to conduct independent research on universities, read reviews, and even connect with current students.
This increased access to information has lessened the reliance on traditional agency channels. In some cases, agents also find themselves competing with university marketing and recruitment teams who support students directly.
The rise of master agents and aggregators
In response to these market shifts, many established agencies have transitioned to the “master agent” or “aggregator” model. This involves acting as intermediaries between universities and smaller agencies, facilitating student recruitment while generating additional revenue streams. However, this model presents challenges for universities, particularly those with lower rankings.
Mingze Sang clarifies” “I would refer to aggregators as international university resource-holders or platforms.” Aggregators have existed in China for a while. However, the “risen” aggregators are often new agencies with strong connections to some foreign educators, enabling them to offer special programs. Some aggregators take the stance: “Every university is welcome on my platform. It’s up to you whether you can attract students.”
The number of agencies and agents is increasing, while the number of students is not growing at the same rate. Therefore, the market is transforming into a resource-driven one.
Aggregators have existed in China for a while. However, the “risen” aggregators are often new agencies with strong connections to some foreign educators, enabling them to offer special programs
Currently, many parents and students in China are seeking the best outcomes with the least investment. Consequently, those with strong connections to well-ranking universities and who can provide special programs to students are highly sought after. Regarding the traditional aggregators in China, who have been present for at least 15 years, the competition is even more fierce than among agencies. They are struggling with issues such as commission percentages and counselling services, and are focused on survival rather than growth.
Evolving student and parent priorities
The priorities of Chinese students and parents have also undergone significant evolution. While university rankings were once the primary determinant, factors such as career prospects, student experience, and the quality of life in the chosen city are now gaining greater importance. This necessitates a more nuanced and student-centric approach to recruitment.
Sang observes that the priorities of parents and students are employment after graduation. University rankings remain a key factor influencing their employment decisions. With foreign enterprises departing China and private companies facing challenges, parents often favour employers “in the system,” such as state-owned enterprises, hospitals, and universities. University ranking is crucial for standing out in a competitive job market. Furthermore, parents increasingly inquire about graduation requirements and the difficulty level of graduation.
Student motivations
Economic factors are influencing student choices in China. Post-Covid economic challenges have increased demand for international courses offered locally. These programs, offering global qualifications without the necessity of overseas travel, are attractive to many. Transnational education (TNE) programs are becoming more selective, enhancing their reputation and attracting students seeking high-quality international education experiences.
As Sang notes: “Excellent students are seeking top universities with specialised majors. Average students are seeking top universities regardless of majors. Below average students are seeking degrees, prefer to go abroad as late as possible, and desire special, safe, and affordable services.”
How universities can navigate the market
Foreign institutions hoping to maintain a strong presence in China must evolve with the market. The traditional reliance on agencies is no longer sufficient. Instead, universities must:
Sang concludes: “For those well-ranking universities, such as the Australian Group of Eight, focus on ranking, maintain reasonable commissions, and be strict on graduation but not overly harsh on enrolment.
“For those lower-ranking universities, spend more time engaging with Chinese colleges and universities; as there are thousands of them in China, be flexible when dealing with universities, and rely on a bit of luck.”
Succeeding Justin Trudeau as Canada’s 24th Prime Minister, Carney’s swearing-in ceremony was conducted by governor general Mary Simon at Rideau Hall in Ottawa.
Carney’s appointment as Canada’s leader comes at a time when the country is navigating through an increasingly tumultuous relationship with its closest neighbour and ally, the United States.
Canada’s ties with the US have worsened after President Donald Trump imposed steep tariffs on Canadian goods and floated the idea of integrating Canada into the US, sparking strong backlash.
Considered a political newcomer, who played significant roles as the governor of the Bank of Canada and the Bank of England between 2008 to 2020, Carney is known for having a tough stance on immigration.
Calling Canada’s immigration policy “failures of executions”, Carney stated that Canada has taken in more people than its economy has been able to handle.
“I think what happened in the last few years is we didn’t live up to our values on immigration,” he said at a Cardus event – a Christian non-partisan think tank – in November last year, according to Canadian media reports.
“We had much higher levels of foreign workers, students and new Canadians coming in than we could absorb, that we have housing for, that we have health care for, that we have social services for, that we have opportunities for. And so we’re letting down the people that we let in, quite frankly.”
Carney’s statement suggests that he will uphold the Canadian federal government’s plan to reduce immigration targets over the next three years.
Recently, the federal government announced a shift in its immigration strategy, cutting the number of newcomers by 21% – from approximately 500,000 in 2024 to 395,000 in 2025 and 380,000 in 2026.
In its race to reduce temporary residency numbers and overall inflow of immigrants, international students in Canada have faced the brunt of policy changes in the country.
Canada has imposed more caps on study permits, eliminated fast-track study permit processing, increased PGWP eligibility and English proficiency requirements, in an effort to “align its immigration planning with capacity”.
Over the past year, policy restrictions have already had a significant impact in Canada, with the total number of study permits processed by the IRCC expected to be 39% lower than in 2023.
A former international student himself, Carney is expected to continue with restrictive policies on the cohort, as he previously blamed Canadian provinces for “underfunding higher education”, which pushed institutions to rely on international students.
“Do we value higher education in this country or not? Well, if we value higher education, maybe we should start funding our universities,” stated Carney.
“On the foreign student side, it’s more on provincial policy, on squeezing universities, in a sense.”
Daljit Nirman, an immigration lawyer based in Ottawa and founder, Nirman’s Law, believes aggressive student recruitment has contributed to housing shortages, an oversaturated job market, and increased strain on health care, making effective newcomer integration in Canada more difficult.
“Given Carney’s stance and these recent policy changes, it is likely that Canada will continue implementing stricter controls on international student admissions during his tenure,” Nirman told The PIE News.
“This measured approach aims to preserve the benefits of international education while ensuring that Canada’s infrastructure can effectively support those who choose to study and settle in the country.”
According to Priyanka Roy, senior recruitment advisor at York University, while Carney’s stance on immigration may appear stricter, it will ultimately result in a more “balanced approach.”
“While it may seem like a tougher stance on immigration, we believe that Prime Minister Carney’s stance is to create a balanced approach to immigration, ensuring that international student enrolment aligns with Canada’s economic capacity and does not place undue pressure on local infrastructure,” Roy told The PIE News.
“York is proactively adapting by offering sustainable solutions, such as a four-year housing guarantee, on-campus job opportunities, and co-op programs; provisions that help our international students integrate into Canadian life while maintaining a balanced and healthy relationship with the local community.”
Prime Minister Carney’s leadership presents a valuable opportunity to rebuild stronger ties between India and Canada, fostering an environment of trust and collaboration
Priyanka Roy, York University
The former banker, who won the Liberal Party race by 86% of the votes, also acknowledged immigration’s role in contributing to Canada’s economic future.
Emphasising the need for productivity and a growing labour force, Carney has previously highlighted that Canada’s growing labour force is “going to largely come through new young Canadians”.
With immigration poised to be a key issue, rebuilding ties with India – one of Canada’s largest sources of migrants – will be crucial for the prime minister-designate.
Having already expressed a willingness to mend relations following a major diplomatic crisis, Carney’s efforts to indulge in discussions with India could spell good news for Indian students eyeing Canada as a study destination.
“Prime Minister Carney’s leadership presents a valuable opportunity to rebuild stronger ties between India and Canada, fostering an environment of trust and collaboration,” stated Roy.
“As diplomatic relations improve, we are confident that more Indian students will continue to view Canada as an attractive destination for higher education and realign their preference for higher education in Canada.”
If families looking to relocate to “top destinations” such as the US and Canada choose the right program for their children, they may be granted permanent residency as domestic students or even graduate from their chosen institution as residents or citizens, according to Tess Wilkinson, director of education services at Henley & Partners Education in the UK.
“We’re now seeing a real uptick in the types of families who are now becoming aware that there is an option for them,” she told The PIE News.
“For families looking at relocating, there can be real gains in the amount of fees they spend on education in places like Canada,” she explained. “They can they can save [up to] $150,000 on fees.”
The sheer number of clients asking for assistance in this area signals that education is swiftly becoming “one of the key drivers for people looking at second residences to citizenships”, she added.
Henley & Partners refers to itself as a “global leader in residence and citizenship by investment”. Its education arm, Wilkinson explained, helps to “advise transnational families who are looking for global education solutions”.
Working with families all over the world with children and adults of all ages – from K-12 to those seeking master’s degrees or MBAs – it “assists them to find the right match”, taking into account children’s individual needs and the types of residency or citizenship that may become available to its clients through educational opportunities.
“We can advise on all the top-tier destinations. So we have a family, for instance, who are considering the UK, the US and Australia and they’re putting in applications for all three countries,” Wilkinson shared.
We’re now seeing a real uptick in the types of families who are now becoming aware that there is an option for them
Tess Wilkinson, Henley & Partners Education
With immigration policies in key markets such as the UK, the US, Canada and Australia shifting all the time, Wilkinson acknowledged that it “is not something that is simple”.
But she said that, with expertise across a number of key markets, Henley & Partners can provide families with education counsellors to help match children to institutions that suit them best, as well as help with applying to universities or summer programs.
The ‘big four’ international education destination countries are all seeing turbulence in their respective markets. Some of these restrictive policies are having an impact on students’ ability to study in the countries, hindering them from securing post-graduate residency in their chosen destination.
Australia and Canada are both subject restrictions on international students, while UK universities’ international departments have been blighted by a crackdown on overseas students’ ability to bring their families into the country with them.
Meanwhile, Donald Trump’s second term as US President continues to present challenges to the sector, as he freezes study abroad funding, battles against DEI legislation and moves to arrest or even deport international student protestors.
Tess Wilkinson will be speaking at The PIE Live Europe at the PIEx Power Up Expanding horizons: accessing global education & opportunity via investment migration on March 11 at 16:00. Tickets are available online here.
In February 2025, five years after the UK formally left the EU, Sir Keir Starmer became the first UK Prime Minister since Brexit to head to Brussels to join a meeting of EU leaders. The trip was packaged as part of a “reset” in relations between the UK and the EU, albeit caveated with promises that the UK government is not seeking to re-join the EU’s single market or customs union, nor sign up to the principle of freedom of movement.
With President Donald Trump back in the White House and war ongoing in Ukraine, closer cooperation between the UK and EU in areas of security and defence will be vital to maintain pressure on Russia and bring about peace on the continent. Enhancing trade between the UK and EU will also be a key ambition shared by both parties, given the looming threat of American tariffs and the need to secure economic growth.
Youth mobility
The process of resetting the UK-EU relationship by the spring is one to watch for the UK’s higher education sector. This is because, while the EU has the power to ease restrictions on UK businesses to improve British trade prospects, the UK also has something that many in the EU want in return: namely the power to reinstate a youth mobility scheme between the UK and the EU.
At its most ambitious, such a scheme could allow young people from the UK and Europe the freedom to travel across countries to study and work as was the norm before Brexit. A curtailed version could at least see mobility enacted for shorter, time-limited placements. Either way, UK universities could find themselves becoming an important bargaining chip in any future renegotiations.
Bargaining power
Given the demand for a return of youth mobility is greater in the EU-27 than it is in Britain, UK ministers understandably remain cautious about giving the green light to this idea too soon. The recent gains of the populist Reform UK party in public popularity polls will likely also enhance this nervousness. Moreover, with the policy in clear breach of the UK Government’s own ‘red line’ on freedom of movement, British officials are playing down the prospect of any return to youth mobility between the two powers.
UK universities could find themselves becoming an important bargaining chip in any future renegotiations
Yet, as anybody who has ever been involved in some sort of negotiation knows, the key to a good outcome is not showing your own hand too early in the process. Doing so may significantly weaken your bargaining power and ability to leverage the situation in your own favour. The possibility of the UK offering a youth mobility concession to European leaders to secure more lucrative trading conditions and pump-prime economic growth may not, therefore, be completely off the table.
Risky business
In the past, the UK higher education sector would have been first to welcome the return to Britain of a youth mobility scheme such as Erasmus+. However, the current financial troubles facing the sector are likely to dampen university managers’ enthusiasm for any measures that would see EU students once again regarded as ‘home’ students, thereby capping the fees they pay.
The introduction of youth mobility measures would provide a welcome boost to the diversity of UK student populations by making it easier for those from less privileged backgrounds in Europe to study in Britain. However, with universities now focusing on their bottom line rather than the size and shape of their student intakes, any concessions that could reduce the revenue-generating potential of EU students could destabilise universities’ finances at a time when every penny counts.
Balancing act
The big question facing the higher education sector, then, is whether there is a proposal the UK government could make involving UK-EU student mobility that reconciles universities’ search for greater diversity on campus and enhanced prospects for their students with their need for extra income.
As it stands, the future of UK and EU students rests in the back pocket of the UK Prime Minister. Whether he pulls a student mobility scheme out as a trump card to get a beneficial deal for the British economy depends on the messages UK universities send to ministers and officials over the coming months.
Not enough noise about potential changes to the status of EU students could leave universities exposed without a financial compensation package from Treasury to cover any headline fee changes that a new youth mobility programme would incur. Yet, too much noise would also risk negative headlines around the world that international students are nothing more than lucrative cash flows for hard-up institutions.
The political reset ahead represents a balancing act for UK higher education. The key is whether we can find a solution that opens up UK universities and their students’ prospects further to the outside world while stabilising them financially so they can continue to transform lives for generations to come.
The post Beech-side views: Here’s looking at EU! appeared first on The PIE News.
Reports say that Indian Students in the US are becoming collateral damage amidst President Donald Trump’s Mass Deportation Drive. The Indian students entered the US legally, on valid visas. But they say they are now being subjected to more frequent questioning from US immigration officials. They say uniformed officers have been questioning them more frequently, and demanding to see their student IDs and documents. Is Trump’s deportation drive becoming an all out purge of migrants, irrespective of whether they’re in the US legally or not?
The case will be heard at London’s High Court April 1-3, the Independent Schools Council (ISC), which represents private schools in the UK, revealed this week.
It’s the latest step in its furious battle to overturn a policy – key to the Labour party’s election manifesto before it regained power in July 2024 – to start levying VAT on private school fees.
The ISC said its case, led by prominent human rights barrister Lord Pannick KC, would argue that the VAT policy “impedes access to education in independent schools” and is therefore incompatible with the European Convention on Human Rights.
In the case, the ISC is supporting six families impacted by the policy, and the defendent in UK Chancellor Rachel Reeves.
The case is being heard on an expedited basis following a successful argument from Lord Pannick that parents needed certainty because they are already feeling the effects of the policy.
ISC CEO Julie Robinson said the organisation’s aim was to “protect the rights” of families and young people “who are having their choice removed from them”.
“This is an unprecedented tax on education – it is right that its compatibility with human rights law is tested,” she continued. “We believe the diversity within independent schools has been ignored in the haste to implement this damaging policy, with families and, ultimately, children, bearing the brunt of the negative impacts this rushed decision is already having.”
This is an unprecedented tax on education – it is right that its compatibility with human rights law is tested
Julie Robinson, ISC
Reeves confirmed in October that the party would be slapping a 20% tax on fees for January 2025, leading to fears from independent boarding schools that their intake of international students could plummet.
Experts predicted that although some schools would choose to swallow the loss of revenue, most would be forced to raise their fees an average of 10-15% to cover costs.
An online private school told The PIE News earlier this month that it has seen a “five-fold” surge in interest from parents since the VAT policy was announced last year.
CEO of Minerva’s Virtual Academy, Hugh Viney, credited the rise in demand to the VAT policy, as he said the school’s fees are “good value” and much less than most private schools at under £8,500 per year – a price that has always included VAT and is therefore unchanged by the new legislation.