Federal University's International Enrollment Drops by 90%, Massive Layoffs to Follow

Hit by both immigration reform and a decline in domestic student demand, the regional Australian Federation University in Ballarat, Victoria, is preparing to lay off 200 staff to save AUD 20 million.

Due to the strict scrutiny on Australian student visas this year, the number of visa applications from India (to 37,000), Colombia (to 24,900), and Nepal (to 14,200) in the first 8 months of this fiscal year has halved compared to the same period last year.

Experts say this dual dynamic may just be the beginning of extreme measures many Australian universities and colleges are forced to take to survive.

The Australian Federation University is one of the smallest public universities in Australia, with only 13,344 students in 2022.

Chancellor Duncan Bentley said the number of international students has plummeted from 8,600 in 2020 to 3,500 this year. 'This means a reduction in revenue of about AUD 80 million,' Professor Bentley said.

So far, only 384 new overseas students have enrolled for studies in 2024. In 2019, this number was 4,743.

The Australian Federation University mainly recruits international students through partnerships with private colleges, such as the Melbourne Institute of Technology, the International College of Business and Information Technology, and the Australian Institute of Technology and Management.

Higher education policy expert Andrew Norton said that although universities, especially regional ones, are under great pressure due to the sharp rise in student visa rejection rates, recent history shows they are very resilient.

The Australian Federation University is the only public university rated by the Australian Department of Home Affairs as the highest risk level. This means the university and its partners are recognized as enrolling too many non-genuine students, or using student visas as a way to enter the job market.

Therefore, all overseas students applying to the Australian Federation University must undergo additional strict scrutiny by immigration officials.

Professor Bentley said the government's stricter immigration reforms are in the right direction, and his university has been targeted by 'unscrupulous private providers' who are stealing its students.

'We need to work with the federal government because they, like us, are surprised by the number of non-genuine students, but they cannot share who these networks stealing students are.'

Professor Bentley said that since the first series of reforms targeting bad colleges were introduced last July, theft has decreased but continues.

National Tertiary Education Union branch president Matthew Abbott said that declining domestic enrollments and high attrition rates are exacerbating the revenue problems caused by a sharp decline in overseas students.

Mr. Norton said he would be surprised if the Federation University were the only small regional university struggling due to a decrease in student numbers.

'It's very tough for universities now. And for some universities, there is no clear way forward, and immigration policies will not become easier,' Mr. Norton said. 'And I think some of these universities, which have historically been very strong in the adult student market, will not recover for a long time.'

Looking at this situation, first of all, regarding the layoffs at the Federation University, this is a painful adjustment, but in some cases, it may be a necessary means of survival. It also highlights the vulnerability of universities in relying on the international student market and the need for more diversified revenue sources and economic models to cope with instability. Furthermore, cooperation between the government and universities is crucial to ensure that the enforcement of immigration policies does not harm the reputation and financial stability of universities.