Tag: International Students

  • Parents turn to international education as path to residency

    Parents turn to international education as path to residency

    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.

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  • Beech-side views: Here’s looking at EU!

    Beech-side views: Here’s looking at EU!

    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.

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  • UK private schools take next step in VAT policy legal row

    UK private schools take next step in VAT policy legal row

    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.

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  • Scotland eyes new graduate visa for international students

    Scotland eyes new graduate visa for international students

    Speaking at an event in Glasgow this week, John Swinney blasted the UK’s “disastrous” decision to leave the European Union, but suggested a new migration route specifically for students who choose to study in Scotland.

    “Twenty years ago, the Scottish and UK governments worked together to launch a tailored migration route designed to enable international students to stay in Scotland after they graduated,” he said. “I see no reason why this cannot happen again.”

    Under the plans, designed to keep highly skilled graduates in the country, the Scottish Graduate Visa would be linked to a Scottish tax code and be issued on the understanding that recipients would live and work in Scotland. 

    But despite Swinney’s assurances that he was “ready to work with” Downing Street on making the proposal a reality, his idea already appears to have been rebuffed by the UK government.

    A government spokesperson quoted by The Evening Standard indicated that there were “no plans” for a new Scottish visa, citing the UK’s Graduate Route already in place that allows international students to stay in the country for up to two years after they graduate.

    In his speech, Swinney said a new Scottish Graduate Visa would benefit not only the country’s institutions but its economy after international students’ graduation, highlighting that this group contributes £4.75 billion a year.

    “In small but important ways, it would make our economy more robust, and our public services more sustainable. It would play a part in making our communities more prosperous,” he said.

    In small but important ways, it would make our economy more robust, and our public services more sustainable
    John Swinney, Scottish first minister

    Pointing out that Scotland’s projected population is expected to dip for the next two generations, Universities Scotland convener Paul Grice highlighted the benefits a Scottish Graduate Visa could bring the country and said he hoped the proposal would “progress in a meaningful way”.

    “It would be enormously helpful if a policy space could be created between governments to consider greater regional variation of migration within an overall UK framework,” he said.

    “Inward migration will be essential to Scotland’s future and there is a really positive opportunity for Scotland’s universities, as magnets for the attraction and retention of highly-skilled people, to help deliver this as a win-win for the sector and Scotland as a whole. There is a lot to like in this outline proposal.”

    Although it does not appear to welcome the idea of a Scottish Graduate Visa for the time being, the UK government seems to be embracing international students.

    This week, education secretary Bridget Phillipson recorded a video message to international students in the UK promoting the country’s post-graduation work opportunities.

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  • College Financials 2022-23 | HESA

    College Financials 2022-23 | HESA

    StatsCan dropped some college financial data over the XMAS holidays.  I know you guys are probably sick of this subject, but it’s still good to have some national data—even if it is eighteen months out of date and doesn’t really count the last frenzied months of the international student gold rush (aka “doing the Conestoga”).  But it does cover the year in which everyone now agrees student visa numbers “got out of control,” so there are some interesting things to be learned here nonetheless.

    To start, let’s look quickly at college income by source.  Figure 1, below, shows that college income did rise somewhat in 2022-23, due mainly to an increase in tuition income (up 35% between the nadir COVID year of 20-21 and 22-23).  But overall, once inflation is taken into account, the increase in college income really wasn’t all that big: about a billion dollars in 2021-22 and about the same again in 2022-23, or about 6-7% per year after inflation.  Good?  Definitely.  Way above what universities were managing, and well above most sectors internationally?  But it’s not exactly the banditry that some communicators (including the unofficial national minister of higher education, Marc Miller) like to imply.

    Figure 1: College Income by Source, Canada, 2017-18 to 2022-23, in Billions of $2022

    Now I know a few of you are looking at this and scratching your heads, asking what the hell is going on in Figure 1.  After all, haven’t I (among others) made the point about record surpluses in the college sector?  Well, yes.  But I’ve only ever really been talking about Ontario, which is the only province where international tuition fees have really taken flight.  In Figure 2, I put the results for Ontario and for the other nine provinces side-by-side.  And you can see how different the two are.  Ontario has seen quite large increases in income, mainly through tuition fees and by ancillary income bouncing back to where it was pre-COVID, while in the other nine provinces income growth is basically non-existent in any of the three categories.

    Figure 2a/b.  College Income by Source, Ontario vs Other Nine Provinces, 2017-18 to 2022-23, in Billions of $2022

    (As an aside, just note here that over 70% of all college tuition income is collected in the province of Ontario, which is kind of wild.  At the national level, Canada’s college sector is not really a sector at all…their aims, goals, tools, and income patterns all diverge enormously.)

    Figure 3 drills down a little bit on the issue of tuition fee income to show where they have been growing and where they have not.  One might look at this and think its irreconcilable with Figure 2, since tuition fees in the seven smaller provinces seem to be increasing at a rate similar to Ontario.  What that should tell you, though, is that the base tuition from which these figures are rising are pretty meagre in the seven smallest provinces, and quite significant in Ontario.  (Also, remember that in Ontario, domestic tuition fees fell by over 20% or so after inflation between 2019-20 and 2022-23, so this chart is actually underplaying the growth in international fees in that province a bit.)

    Figure 3: Change in Real Aggregate Tuition Income by Province, 2017-18 to 2022-23, (2017-18 = 100)

    Now I want to look specifically at some of the data with respect to expenditures and to try to ask the question: where did that extra $2.2 billion that the sector acquired in 21-22 and 22-23 (of which, recall, over 70% went to Ontario alone) go?

    Figure 4 answers this question in precise detail, and once again the answer depends on whether you are talking about Ontario or the rest of the country.  The biggest jump in expenditures by far is “contracted services” in Ontario—an increase of over $500M in just two years.  This is probably as close a look as we will ever get at the economics of those PPP colleges that were set up around the GTA since most of this sum is almost certainly made up of public college payments to those institutions for paying the new students had arrived in those two years.  If you assume the increase in international students at those colleges was about 40,000 (for a variety of reasons, an exact count on this is difficult), then that implies that colleges were paying their PPP partners about $12,500 per student on average and pocketing the difference, which would have been anywhere between about $2,500 and $10,000, depending on the campus and program.  And of course, most of the funds spent on PPP were spent one way or another on teaching expenses for these students.

    Figure 4: Change in Expenditures/Surplus, Canadian Colleges 2022-23 vs 2020-21, Ontario vs. Other 9 Provinces, in millions of 2022

    On top of that, Ontario colleges threw an extra $300 million into new construction (this is a bit of an exaggeration because 2020-21 was a COVID year and building expenses were abnormally low), and an extra $260 million (half a billion in total) thrown into reserve funds for future years.  This last is money that probably would have ended up as capital expenditures in future years if the feds hadn’t come crashing in and destroying the whole system last year but will now probably get used to cover losses over the next year or two instead.  Meanwhile, in the rest of Canada, surpluses decreased between 2020-21 and 2022-23, and such spending increases as occurred came mostly under the categories “miscellaneous” and “ancillary enterprises.”

    2022-23 of course was not quite “peak international student” so this analysis can’t quite tell the full story of how international students affected colleges.  We’ll need to wait another 11 months for that data to show up.  But I doubt that the story I have outlined based on the data available to date will not change too much.  In short, the financials show that:

    • Colleges outside Ontario were really not making bank on international students.
    • Within Ontario, over a third of the additional revenue from international students generated in the 2020-21 to 2022-23 period was paid out to PPP partners, who would have spent most of that on instruction.
    • Of the remaining billion or so, about a third went into new construction and another 20% was “surplus,” which probably meant it was intended for future capital expenditure.
    • The increase in core college salary mass was miniscule—in fact only about 3% after inflation. 

    If there was “empire building” going on, it was in the form of constructing new buildings, not in terms of massive salary rises or hiring sprees. 

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