Several leading UK universities are warning of a funding gap after a decline in overseas student enrolments, particularly from China and India.
With tuition fees capped for domestic students, international students have long provided a critical income stream. The fall is being blamed on tighter visa restrictions and increased competition from Canada and Australia.
Vice-chancellors are calling on the government to reconsider immigration policies, arguing that the UK risks losing its global standing in higher education if the trend continues.
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