International education dream ‘under threat’ from soaring living costs

Global inflation threatens to derail the post-Covid recovery of international education as living costs and housing shortages cause one in two prospective international students to rethink their plans, according to a global survey of 21,000 students.

Fifty-one per cent of respondents to a major student survey said they were reconsidering their decisions to study abroad because of recent increases in the cost of living. The findings are a “red flag” for universities, according to the international education services company IDP, which conducted the survey.

Joanna Storti, Asia Pacific commercial director of IDP’s recruitment arm, said concerns about living expenses and affordable housing were widespread and escalating. “These…issues are really screaming at us and we have a responsibility across the sector to address them,” she added.

“Over half of students [are] now reconsidering if they’re going to study overseas at all because of the cost of living. This could affect conversion rates. We could see it coming through in applications and offers through to enrolments. It’s something for institutions to be aware of and to be watching.”

The March survey, conducted as the third tranche of IDP’s “Emerging Futures” study, captured the views of more than 21,000 prospective and current international students from 108 countries. The sample, roughly twice as large as the study’s previous waves in 2022, was bolstered by responses from Nigeria, Ghana and Kenya after IDP’s recent acquisition of an Africa-focused education agency.

Canada remained the first-choice destination country for the largest number of respondents, with 27 per cent nominating it, a figure unchanged from the two previous surveys. Australia retained second spot with 23 per cent, two percentage points down from the most recent survey in mid-2022.

The US was favoured by 21 per cent of respondents, up three percentage points on the last survey, while the UK slipped two percentage points to attract first-choice billing from just 18 per cent of students.

Ms Storti said post-study work options were a key factor in each country’s appeal, with students keen to stay on and work as graduates, mainly for the career experience. Sixty-three per cent of respondents said post-study work rights were the “main or influencing” factor in their destination choices, while 44 per cent said they would consider switching countries if the duration of work rights were shortened.

Ms Storti said Canada was seen as offering not only post-study work rights but also realistic opportunities for relevant graduate employment. This perception helped to compensate for the bad press Canada had attracted over visa-processing delays and enrolment scandals.

“The combination of the policy settings – the visa opportunity and…meaningful access to real post-study employment – is what students want, and that’s coming through clear in the research,” she said. Employment outcome perceptions were also higher in the US than in the UK or Australia, Ms Storti added.

But an expanded “consideration set” also showed that students were prepared to switch allegiance at short notice. The survey found that one third of respondents were now juggling three destination countries as live options.

The survey also highlighted the role of employment in facilitating study. Eighty-one per cent of respondents said they were working or intending to do so during their courses, with 31 per cent describing part-time work as the main funding source for their studies – and 71 per cent saying they wanted help in finding that work.

john.ross@timeshighereducation.com