Some universities are already expecting to lose more than £100m as foreign students cancel their studies, with warnings that the impact of coronavirus will be “like a tsunami hitting the sector”.
Several organisations are now planning for an 80-100% reduction in their foreign student numbers this year, with prestigious names said to be among those most affected. The sector is already making a plea to the government for a cash injection amounting to billions of pounds to help it through the crisis, as it is hit by a drop in international student numbers, accommodation deals and conference income.
Universities are already lining up online courses for the start of the next year, but academics are concerned about the impact on first-year students new to university life. Many institutions have recently borrowed heavily to pay for attractive new faculties, often designed to attract overseas students. It comes against a backdrop of declining numbers of university-age students in the UK and the previous uncertainty around Brexit.
Andrew Connors, head of higher education at Lloyds Banking Group, said the crisis has felt “less like a perfect storm and more like a tsunami hitting the sector.” Banks have not had urgent requests from universities, as big financial hits are expected later in the year. However, he said that “while the immediate impact we are seeing in the sector is slower, the overall impact of Covid-19 is potentially deeper and longer.”
One wonders how long governments can keep bailing everyone out…
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