Student Visas Surge Dramatically, IPB University Professor Predicts: The Decline of Australian Education’s Golden Age

Education enthusiasts in Australia were recently taken aback by the federal government’s plan to limit the number of international students. The initial surprising step is the increase in student visa fees from $710 to more than double, $1.600, starting this July.

IPB University Professor, Prof Ronny Rachman Noor predicts that this increase in student visa fees will pose a significant problem for Australian universities. He suggests this marks the end of the golden era of Australian education, which has long relied on international students as a key component of its system.

“It is predicted that this situation will have a major impact on Australia’s economy because the number of foreign students is expected to decrease sharply,” said Prof Ronny, who served as Indonesia’s Education and Culture Attaché in Australia from 2012 to 2016.

To illustrate, from July 2023 to May 2024, the number of visas issued for prospective international students reached 440.000.

“It cannot be denied that the presence of international students in Australia significantly impacts the real economic sector. With such high visa fees, obtaining a visa becomes more expensive compared to other competing countries,” he explained.

According to him, international students in Australia are a backbone of national revenue, contributing $40-$50 billion annually. As of February 2024, the number of foreign students in Australia reached 713.144. With such figures, foreign students provide substantial foreign exchange earnings for the Australian government.

Consequently, this visa fee hike has met resistance from the Australian International Education Association. They state that the Australian government’s surprising policy is a significant blow to the international education sector in Australia.

This policy has also triggered anxiety and anger among international students currently studying in Australia. Moreover, the increase in visa fees is not the only burden felt by international students. They are also required to provide a high deposit.

In addition, over the past 20 years, accommodation costs, tuition fees, living expenses, and education insurance in Australia have skyrocketed. According to Prof Ronny, this trend aligns with the weakening Australian economy.

“With the deteriorating Australian economy, the number of scholarships and educational funds allocated to universities has decreased,” he explained.

“Upon closer examination, it seems that this visa fee increase is aimed at raising additional funds to finance education, including reducing graduates’ debt, funding internship participants, and implementing immigration strategies,” said Prof Ronny.

Based on his analysis, the Australian government seems to want to streamline the number of international students to improve quality. One aim is to control the surge in immigrants that rose sharply after the COVID-19 pandemic, reaching 528.000 in 2022-2023.

Before the political tensions between China and Australia, the number of international students from China exceeded 150.000, making it one of the largest groups of students in Australia. Indonesia, on the other hand, has an average of about 11,000 students annually.

“Upon closer examination, proximity and quality of education are the two main factors that make Australia a favored education destination. However, over the past 20 years, education costs in Australia have skyrocketed, causing scholarship providers to choose other countries to send their students because it is clearly cheaper,” said Prof Ronny.

For illustration, sending a student to Australia for a master’s and doctoral degree is equivalent to sending 4-5 students if they complete their education in Indonesia or other Asian countries with comparable academic reputations and lower education costs.

Prof Ronny also believes that the increase in education and visa costs will affect Australia’s relations with neighboring countries in the Indo-Pacific region, including Indonesia. They will likely choose to send students to other countries, such as the UK, where visa fees are only $900 with equivalent or even cheaper education costs. Similarly, compared to Canada and the US, where visa fees are lower. (*/Rz) (IAAS/RUM)