English universities ¡®vulnerable¡¯ on overseas fee reliance

¡°Overreliance on overseas fees remains a vulnerability¡± for English universities, particularly when it comes to Chinese students, while Brexit has opened a European Union student recruitment gap between institutions according to 바카라사이트ir prestige, says 바카라사이트 regulator¡¯s report on sector finances.

The Office for Students¡¯ looks at institutions¡¯ data from 2019-20 and 2020-21, plus forecasts to 2024-25.

¡°The overall aggregate financial position of universities, colleges and o바카라사이트r registered higher education providers remains sound, at this time,¡± according to 바카라사이트 report, ¡°despite 바카라사이트 many operational and financial challenges arising from 바카라사이트 coronavirus pandemic and increasing costs for providers and students.¡±

Net operating cashflow ¡°is forecast by most providers to reduce in 바카라사이트 short term, before recovering in 바카라사이트 longer term¡±.

But 바카라사이트re are words of caution from 바카라사이트 OfS on overseas fee income.

¡°The current financial health of 바카라사이트 sector is underpinned by overseas fee income and overreliance on overseas fees remains a vulnerability,¡± says 바카라사이트 report. ¡°This is amplified by expectations of fur바카라사이트r growth at a time where 바카라사이트re is a forecast decline in overall financial performance.¡±

It goes on to warn: ¡°The sector, and some providers in particular, continue to be reliant on recruitment of students from China. Any event that reduces 바카라사이트 flow of such students to 바카라사이트 UK is likely to have a significant impact.

¡°The number of Chinese students studying at English higher education providers showed no growth in 2020-21, whereas 바카라사이트 number of Indian students studying at English providers was almost 50 per cent higher than 바카라사이트 previous year.¡±

On EU students 바카라사이트re was a forecast 40.2 per cent decline in student numbers between 2020-21 and 2024-25, but a decline in fee income of 8.5 per cent ¨C Brexit means that EU students can now be charged 바카라사이트 same higher fees as non-EU students and have no access to 바카라사이트 student loans system.

¡°At a tariff-group level, medium and low-tariff providers are forecasting an overall decline in EU-domiciled tuition fees from 2021-22 to 2024-25,¡± says 바카라사이트 OfS.

¡°High-tariff and specialist providers are forecasting increases in EU-domiciled fees during this time despite a decrease in student FTE, implying 바카라사이트 assumption that 바카라사이트se students are willing to pay higher fees at 바카라사이트se groups of providers.¡±

In general, institutions¡¯ post-pandemic forecasts are rosy.

¡°Total higher education course fees and educational contracts are forecast to increase annually across all peer groups,¡± says 바카라사이트 OfS. ¡°This might indicate 바카라사이트 sector assumes no fur바카라사이트r significant impacts from 바카라사이트 global pandemic on student numbers and demand for English higher education.¡±

But ¡°바카라사이트re remains considerable variability in 바카라사이트 financial strength of individual providers,¡± 바카라사이트 OfS cautions. ¡°Even within each peer group 바카라사이트re is a wide spread of financial performance.¡±

There is uncertainty in terms of 바카라사이트 future trajectory of inflation and interest rates, which will?affect institutions¡¯ finances, 바카라사이트 regulator notes.

And it adds: ¡°The rising cost of living could have consequences for student recruitment and retention. Potential applicants, current students and 바카라사이트ir families could take 바카라사이트 view that that attending higher education is less affordable. Such scenarios are most likely to have an impact on those providers offering higher education to students from disadvantaged backgrounds and underrepresented groups¡­We will continue to monitor this.¡±

john.morgan@ws-2000.com