In a fresh blow to beleaguered UK universities, already beset with financial strain, International students who have paid thousands of pounds in non-refundable deposits to UK universities for the September 2025 intake, face significant uncertainty following Prime Minister Keir Starmer's recent announcement of stringent immigration reforms.
Inforens, a prominent international student community platform supporting over 8,500 students, has noted up to 35% of International students with confirmed admissions looking at re-evaluating take-up of the admission offer following the May 12th policy announcement - compounding an already troubling decline in UK's international education sector.
New Immigration Rules Deal Fresh Blow to UK Universities Already Struggling in the International Student Market
The UK's international student sector was already experiencing a downturn before Starmer's recent announcement. Higher Education Statistics Agency (HESA) data shows that non-EU entrant enrolments declined by 7% between 2022/23 and 2023/24, marking the first decrease since 2016/17.
The Prime Minister's new immigration white paper, unveiled on May 12th, introduced several major changes affecting international students, including:
1. Reduction of the Graduate Route visa duration from 24 months to 18 months, limiting post-study work opportunities for those wishing to stay in the UK.
2. Extension of settlement requirements from 5 years to 10 years for immigrants seeking permanent residency
Starmer stated "Migration is part of Britain's national story. Migrants were part of that and they make a massive contribution today and you will never hear me denigrate that", while simultaneously pledging to "significantly" reduce migration numbers.
The timing of these announcements has created a crisis for thousands of visa applicants who had already paid substantial deposits to secure their places at UK universities. These deposits, ranging from £2,000 to £6500, are largely non-refundable under current university policies.
Anupama (name changed to protect identity), from Kolkata, who paid £2,500 deposit to the University of Warwick in January 2025, is just one of many students caught in this predicament. When she contacted Warwick university expressing concerns about the immigration policy changes and enquiring about a refund, she received a response stating that deposits could only be refunded in certain specific circumstances, for example - visa refusal, failure to meet academic requirements, or medical reasons.
"As you do not meet the refund criteria, we are unable to refund your deposit payment," wrote the Administrative Officer for full-time Admissions courses at Warwick. The university further noted, "Please note, no changes have yet been announced" despite the Prime Minister's clear policy statements.
Another student facing the same dilemma, Rahul (name changed), a top engineering candidate with several years of software engineering work experience, granted admission to study AI at a Top5 UK university, has also paid a deposit of £2,500 - yet is seriously considering not proceeding further.
India and Nigeria Hit Hardest by Declining International Enrolment
Even prior to these changes, the year 2023/24 saw a noticeable drop in International enrolments at UK universities, for students from countries that have traditionally sent large numbers to the UK.
According to HESA data, India is the top non-EU market despite suffering a 15% year-over-year decline in new student enrollments in 2023/24. Nigerian student numbers had declined even more dramatically, dropping by 36% in the same period.
The postgraduate taught sector, made up of Masters programs in various disciplines, has been particularly popular over the past several years, due to their shorter duration and pathway to employment opportunities through the Graduate Route visa - the very visa now being made more restrictive by Starmer's government.
Economic Impact on UK Universities and the Broader Economy
International students contribute significantly to the UK economy, not only through tuition fees that are substantially higher than those paid by domestic students but also through living expenses, tourism, and cultural exchange.
The accelerating decline threatens university finances and broader economic health, especially as international students also pay visa fees (plus IHS) that run into thousands of pounds.This significant contribution to the UK economy, is now facing jeopardy due to continuous adverse policy changes.
Calls for Policy Reconsideration and Deposit Refunds
Yash Gulati, Founder of Inforens, expressed serious concerns about the impact of these policy changes: "We're seeing an unprecedented level of anxiety among international students who have already committed financially to their UK education. Many feel trapped, having paid non-refundable deposits under conditions that don't account for significant government policy shifts that materially affect their investment and future prospects in the UK."
"Universities need to recognise that these are exceptional circumstances. When the Home Office fundamentally changes the value proposition of UK education by reducing post-study work opportunities from 24 to 18 months, students should have the right to reconsider their substantial financial commitment" Gulati added.
With the full implementation of these policies still pending, international students and universities alike remain in a state of uncertainty, with millions of pounds and countless educational futures hanging in the balance.
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