Cost of living deters international students as Australia loses top spot in university rankings

Key Points

Australia has been knocked off the top spot in university rankings.
There’s been a shift in the perceptions international students carry toward different countries.
A report finds cost of living is deterring international students from studying in Australia.

The high cost of living and tuition fees in Australia has knocked the country off the top spot in university rankings it shared with Canada, with uncertainty around government migration policy contributing to the fall.

A report from education and migration agents IDP Education has revealed a significant shift in the perceptions international students carry towards different countries, particularly the US, Australia, and Canada.

Australia and Canada have fallen from equal first to second and fourth respectively, with the cost of living and education major factors deterring international students from studying in Australia.

Australia’s ranking as a first-choice study destination decreased by two per cent to 23 per cent compared to mid-2023 but student satisfaction levels have remained steady.

America ranked first with 24 per cent, followed by Australia with 23 per cent, Britain with 22 per cent, Canada with 19 per cent, New Zealand with 4 per cent and Ireland with 2 per cent.

What’s deterring international students from studying in Australia?

Education quality, employment prospects and value for money were the main driving factors for students determining where to study, IDP found.

Visa and policy disruptions impacting students had contributed to the shake-up, IDP Education managing director Tennealle O’Shannessy said.

“As governments in some countries adopt measures which impact international students, demand is inevitably being affected and it is increasingly difficult for driven and bright students across the world to pursue their global goals,” she said.

The Albanese government has cracked down on student visas in a bid to stop people using the system as a back door to the Australian jobs market.

The also aims to cut new arrivals by targeting universities at a higher risk of letting in students to work rather than study.

It has led to concerns that students from certain countries, such as India, are seek to avoid government attention.

The research report was informed by 11,500 prospective, applied, and current international students from 117 countries.