The economic climate is international student's greatest worry
INTO University Partnerships is a British for-profit organization that provides foundation courses to international students and conducts research about the higher education sector. In April 2023, it published its Global Education Agent Survey Report after talking to agents on various continents about their clients' concerns.
The sending countries and regions in the survey are South Asia, China, the Middle East & Africa, Latin America, and Eastern Europe & Central Asia. Meanwhile, the countries of destination in the report are the UK, the US and Australia, which receive the most international students globally.
South Asia is the region that's sending the most students abroad. The UK is the country that's experiencing the most growth in international students, which is at least partly driven by post-study work opportunities. The concerns of students are not exactly the same in every region, but the overarching concern remains economic climate and affordability. This is not only the affordability of the studies themselves but also of the cost of living, especially of accommodation.
Accommodation takes up the biggest chunk of a cost-of-living budget
The biggest non-tuition expense is accommodation. It can consume half to three-quarters of a student's cost-of-living budget. For instance, an international student in London needs about £1,300 per month, out of which rent is going to take £600-800. Food, in comparison, can cost only £125 per month. In Perth, a student needs around AU$ 2,000-2,500 per month, and rent can take up as much as AU$ 1,000 of that. The lowest rent will be around AU$600.
As the US is very geographically extensive, the cost of accommodation across the country can vary wildly. Studying in smaller cities or rural areas will give you more affordable accommodation options, even if it comes at the cost of an environment with fewer social and cultural activities. The Indian international education consultancy Yocket says that accommodation can cost as little as $750/month in a midsize city like Pittsburg but as much as $1,500-4000/month in big metropolises like New York and San Francisco.
The energy crisis, different levels of subsidization for public transport, and the accessibility of public healthcare can also significantly impact an international student's budget. The US is infamous for its expensive healthcare. As such, says the Times Higher Education, international students need to budget $1,500-2,500 per year for health insurance.
The UK is in the middle of an energy crisis, with gas prices quadrupling in late 2021. Their price has now been capped to protect consumers until March 2024, but they may go up again after that deadline. So students planning on renting accommodation that excludes bills must consider the possible fluctuation of energy prices in 2024 in their budget.
In INTO University Partnerships' survey, students from Africa and the Middle East showed the most concern about the economic climate – nearly 70% did. This is because the economies and currencies of these countries tend to be much less powerful than those of their study destinations in the Western world. In comparison, less than half of the students from China and South Asia were primarily concerned with financial issues. These countries have a considerable pool of upper-middle class and upper-class students, numbering in the millions, which might explain this.
Homelessness threatens international students in times of housing shortage
It was previously mentioned that accommodation tends to be the biggest financial stress for students alongside international student fees. In some countries and cities, the problem is so severe that many international students are threatened by homelessness. That is the case in the Netherlands and in many Scottish cities.
The Netherlands is a tiny country that has been dealing with a housing crisis for some years. Some Dutch universities have even advised international students to defer their enrolment or withdraw from their course if they can't secure housing promptly. In The PIE News, a spokesperson of Utrecht University has said that even if they reserve housing spots for 1,250 international students, that's not enough for all international students who struggle to find their own place.
International students can be easily outcompeted by domestic ones when housing is scarce. For one, many start looking for accommodation only after their student visa is granted. Therefore, whenever possible, it's best to book your accommodation early. If you're quasi-certain that you'll get your student visa, you can even book it before being granted it. Some housing agencies require only an admission or offer letter from your university to make your booking. You might even get an early bird discount.
Something else that puts international students at a disadvantage when looking for housing is that they rarely have a relative or close friend in the country who can act as a guarantor. An increasing number of student accommodation providers in the UK and the US require non-resident students to have a rental guarantor who is a resident. If they can't find a guarantor, these students are often required to pay 12 months of rent upfront – which is financially difficult for many.
This guarantor needs to sign a legally binding document that promises that the student has a good rental profile (i.e., is reliable) and that the guarantor will pay the rent if the student fails to do so. This is a big responsibility, so it can obviously not be taken by a mere acquaintance or a distant relative the student is not used to. The guarantor must also show proof of income/savings much higher than the rent amount.
In Scotland, the university towns of Glasgow, Edinburgh, Stirling and St. Andrews are all badly hit by a student housing shortage. The need for a UK-based guarantor puts international students at a disadvantage in the tight race to book an affordable apartment or room. As reported by the BBC, the National Union of Students (NUS) has even raised the alarm that 21% of international students in Scotland face the threat of homelessness. This is nearly double the 12% of domestic students in the same dire situation. Some international students in Scotland have even resorted to temporarily sleeping in hostels (which charge an expensive nightly rate) or in the common room of student halls.
In January, the Chinese Ministry of Education instructed students who had been stuck at home because of the pandemic to return to their international campuses. It warned that those who keep studying online in 2023 would not have their degrees recognized by the authorities. These 2nd, 3rd and 4th-year students returning to the UK after a semester or more of distance learning, regardless of whether they're flying in from China and other countries, are struggling to find new accommodation in 2023.
How can you avoid finding yourself in such a situation? First of all, communicate with your university as early as possible about your housing concerns, much before even applying for your student visa. Even if they can't guarantee on-campus housing, they might guide you to reliable private agencies or student halls.
Secondly, research the housing situation in your university's city before accepting an offer. It's much safer to choose a city where you have relatives or friends or where there's at least a strong diaspora of other students and expats from your country. You can always stay temporarily with an old friend or relative in case of an emergency. International students from the same country also tend to bond more easily, at least in the first months of living abroad, so they might be more willing to help each other out, for example, by subletting their apartment to a fellow citizen.
Post-study work opportunities, safety and the ease of obtaining a visa are also important
In the survey of INTO University Partnerships, 30% of students saw post-study work opportunities in the host country as a key concern. 17% also prioritized work placement or internship opportunities during their studies themselves. A minority of 8% also mentioned information about the visa application process as being a concern.
For many international students, a degree abroad is part of a larger immigration plan. They invested in these expensive studies with the hope of earning a good salary in an economically powerful country after graduating. As such, the availability of post-study work visas is important for many.
Australia and the UK offer some of the most generous of these visas. The Temporary Graduate Visa in Australia is currently letting international graduates work for 2-6 years, although this duration might be shortened in the future. The Graduate Visa in the UK lets international graduates work in any job or even be self-employed for 2-3 years. This visa was created in 2021, and it might be one of the reasons why the UK is the country in the survey that is expected to enjoy the biggest increase in international students in the coming year. 75% of agents say more students are interested in the UK.
In this survey, safety ranks as the fourth biggest concern of all international students. One-quarter of them say it's very important. Xenophobia and racism, especially against East Asians, soared during the pandemic, affecting students' choice of study destination.
Inside Higher Education says that the fear of gun violence is also a concern for those considering the US. In 2023, a Chinese student was paralyzed in a shooting at Michigan State University, and an Indian one was killed by a gunshot during a robbery in Chicago. It should hence be unsurprising that it's Asian students who are most worried about safety. An older survey from 2019 conducted by World Education Services showed that 40% of Asian, 32% of European and 25% of Latin American students were worried about safety when choosing a study destination. Nevertheless, Latin American students prefer the US as a destination, most likely because of proximity and family ties.
The ease of obtaining a student visa and travel/mobility restrictions are also minor concerns. The pandemic created a student visa backlog in many countries which they are now trying to clear. In 2022, some students had to defer their enrolment because they got a visa appointment too close to their semester start date. In March, the US announced that it'd be increasing student visa fees by 15%, from $160 to $185. We have yet to see if this will have any impact on international students' willingness to come study in the States.
