Experts warn of a higher education sector divided into “winners” and “losers”.
A proposed 6 per cent levy on international student tuition fees has sparked backlash from UK universities.
It has also led to a row with Minister for Skills Jacqui Smith, who said she would ‘run screaming’ if there was further criticism of her policy.
The levy, first announced in September, was intended to fund maintenance grants in support of disadvantaged local students.
The universities have criticised the plan for placing financial strain on a higher education sector that relies heavily on international students for funding.
International students account for 46 per cent of all UK tuition fees, according to data from the Higher Education Statistics Agency (HESA). The proportion is even higher in Russell Group universities, where 62 per cent of the tuition fees come from overseas.
The proposed levy will threaten this crucial stream of income. Goldsmiths University of London estimated it would cost the school an additional £4 million in the coming year.
“This would virtually wipe out any benefits gained by the increase in tuition fees,” said the school’s press office.
Chief Press Officer Alice Gent from Universities UK, a lobby group representing 141 institutions, also spoke of “serious risks” like “stretched budgets” resulting in “diminished support for domestic students.” She also warned of the uncertainty a levy would bring for prospective applicants.
“Until we see what the policy is, it’ll be difficult to determine the true impact. We don’t know who is going to absorb the cost and who is going to pass it on,” said Gent.
The mounting criticism has infuriated Smith, who lashed out earlier this week during a conference hosted by social mobility charity The Sutton Trust.
She said the critics should provide solutions to financial challenges faced by her department rather than complaining about the proposed decision. She also threatened to ‘run screaming’ from the room if more universities complained.
“Let’s not forget this is a decision made at a time of considerable fiscal challenge for the government,” she added.
Experts on higher education are wary of the levy’s long-term impact. A higher education consultant and former vice-chancellor Vincenzo Raimo, believes the policy would worsen inequality in the sector.
He predicts that universities with “high prestige” will simply pass on the costs to international students, while less prestigious schools will be pushed into unsustainable territory.
“For some universities, international activity will no longer be worthwhile. Those at the other end will keep growing using international fees to subsidise their research and grow their strengths,” Raimo told The Raven.
“Essentially the gap between winners and losers will continue to widen,” he stated.
Adjunct Senior Research Fellow at Monash University Malaysia Dr Koh Sin Yee, cautioned against taking international students for granted, especially in a highly competitive industry.
“Students will be making return-of-investment considerations. For example, what might they get out of studying in the UK? Is this investment worthwhile? They are simultaneously considering other study destinations,” she noted.
Regardless, all universities will have to make some tough choices according to international student and migration scholar Liew Zhen Hao, based at the London School of Economics.
“Universities will have to decide when it comes to international students: do they want to kill the goose that lays the golden egg,” he said.
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