Universities race to 'cut prices' to attract international students

Over 20 universities are reducing postgraduate (master's, doctoral) tuition fees due to a sharp decline in international student numbers, a move described by experts as a "race to the bottom".

At least 22 universities in the UK have announced tuition fee reductions for international postgraduate students, according to research by consulting firm S Squared Insights. This initiative comes as institutions face intense competition to attract international students, who represent a primary revenue stream for universities but whose numbers are declining.

Unlike traditional scholarships, these fee reductions are automatically deducted from tuition fees, meaning international students do not need to apply or compete for them. The discount varies among institutions. For instance, the University of Aberdeen's website states that international students will receive a direct reduction of 8,000 GBP, the highest amount recorded to date. Meanwhile, the University of Kent is deducting 5,000 GBP from master's program tuition for students from 14 countries and territories, including Vietnam. The University of Nottingham, a member of the Russell Group, is offering a 3,000 GBP reduction.

Data from the UK Home Office indicates that by the end of July, the number of study visa applications had decreased by 11% compared to the same period last year. This decline is attributed to competition from other study abroad markets and stricter UK Government visa policies, such as restrictions on international students bringing dependents and increased visa fees.

The financial strain on universities is evident. According to the Office for Students (OfS), postgraduate student tuition fee revenue reached approximately 5 billion GBP in the 2024–2025 academic year, a decrease of 0.5 billion GBP from the previous academic year. In May, the UK House of Commons warned that the bankruptcy of a major university was a "tangible risk". A total of 124 institutions face potential budget deficits in the 2025-2026 fiscal year without risk mitigation measures.

As revenue streams shrink, many universities are reducing staff, discontinuing some academic programs, freezing recruitment, and selling assets. The University of Nottingham announced plans a few months ago to cut 600 staff positions, while the University of Kent expects to reduce its workforce by 100 people.

Experts identify numerous risks associated with this tuition fee reduction policy. Julian Westwood, Director of S Squared Insights, told the Financial Times: "A decrease in international student numbers coupled with a reduction in revenue per student could lead to a scenario that exceeds the financial capacity of some institutions." Zeenat Fayaz, founder of consulting firm The Brand Education, described this as a "race to the bottom," where many universities, which already do not have high entry requirements, are now lowering standards and tuition fees simply to attract students.

Amidst these challenges, university leaders are urging the government to reconsider its plan to impose a 925 GBP per student per year international student levy on universities, effective from 8/2028. Libby Hackett, CEO of the Russell Group, affirmed that international students bring significant economic and cultural value to the UK. However, she warned that "a series of government policies threaten to undermine this achievement".

In the 2024-2025 academic year, the UK hosts approximately 685,000 international students. The average master's tuition fee ranges from 15,000-45,000 GBP per year, according to study abroad consulting site ApplyBoard.