Are you planning to study in Australia? Your Australian visa costs are about to rise significantly. The Australian Labor Party has announced plans to increase student visa application fees from AUD$1,600 to AUD$2,000 if re-elected, making it remain the world's most expensive student visa by a wide margin.
This proposed change comes after the Australian student visa fee already jumped 125% in July 2024, when it increased from AUD$710 to the current AUD$1,600. If implemented, this would represent a staggering 181.7% cumulative increase over just twelve months. During this same period, competing destinations like Canada and the United States have maintained much lower fees of CDN$150 and US$185 respectively.
The fee hike is expected to generate an additional AUD$760 million for the government over the next four years. However, this decision raises concerns about Australia's attractiveness as a study destination. Previously, a similar increase resulted in a 50% drop in applications for English language courses. This is particularly concerning given that Australia recently welcomed almost 200,000 international students in February 2025 alone, with over one million international students currently enrolled nationwide.
Australia's governing Labor Party has officially announced plans to increase student visa fees by 25% if victorious in the upcoming federal election. This new measure targets the education sector, which has been a key driver of immigration to Australia in recent years.
In a significant policy announcement, the Australian Labor Party confirmed they will raise the application fee for an Australian study visa from AUD$1,600 to AUD$2,000 if they win Saturday's federal election. This increase follows an earlier dramatic hike implemented just last year.
The planned increase will further cement Australia's position as the country with the most expensive student visas globally. This latest announcement marks the second substantial fee increase by the Labor government within a single year. In July 2024, the government more than doubled the fee from AUD$710 to the current AUD$1,600 - representing a 125% increase at that time.
Finance Minister Katy Gallagher defended the measure during a news conference, stating: "We think that's a sensible measure that really prizes, I think, the value of studying here in Australia". This perspective suggests the government views the high visa fees as reflecting the premium nature of Australian education rather than as a deterrent.
According to a statement issued jointly by Treasurer Jim Chalmers and Finance Minister Katy Gallagher, this visa fee hike will generate approximately AUD$760 million in additional revenue over the next four years. This revenue projection forms part of Labor's broader policy costings released ahead of the weekend election.
The announcement mirrors similar proposals from the opposition Coalition, suggesting cross-party agreement on increasing international student fees as a revenue measure. Both major political parties appear aligned on making international education a target for increased government income.
Furthermore, this policy builds on the government's broader strategy of managing immigration through the education sector. The education industry has been identified as a major source of immigration to Australia, with the government seemingly intent on moderating these numbers through financial measures rather than direct caps on student numbers.
Additionally, the timing of the announcement - less than a week before the federal election - indicates the Labor Party believes the measure will be politically popular with voters concerned about immigration levels and housing pressures in major cities.
Education industry stakeholders have sounded urgent warnings about the severe impacts already being felt across Australia's international education sector following last year's visa fee increase, with predictions of worse outcomes should the proposed hike proceed.
The English Language Intensive Courses for Overseas Students (ELICOS) sector has been hit especially hard by previous fee increases. Following the 125% visa fee hike implemented in July 2024, ELICOS providers reported an immediate 50% decline in student visa applications for English language programs.
Ian Pratt, managing director of Lexis English, described the impact as "immediate and crushing". Consequently, total ELICOS enrolments dropped by 10.5% to 144,453, while commencements fell by 20.5% to 97,496 in 2024 - the lowest level since 2013 outside of pandemic years.
The disproportionate impact on English language programs stems from their typically shorter duration. With average enrollments lasting less than 20 weeks, the current AUD$1,600 fee already represents a substantial percentage of total course costs. Industry experts warn that even at current levels, Australia presents poor value compared to competing markets.
"The ELICOS sector has always been the 'canary in the coal mine'," explained Ian Aird, CEO of English Australia. "There's a much shorter consideration-sales-enrolment process, we're at the start of the journey for students on pathways, so we always feel these shocks first".
Meanwhile, peak industry bodies have criticized the government's approach as lacking coherent strategy. The Independent Tertiary Education Council Australia (ITECA) stated that Australian businesses have endured "a series of ham-fisted approaches to reform" over the past three years, "each with different aims, and delivered without genuine consultation".
ITECA's position is that the visa fee increase appears "purely revenue driven" without consideration for broader consequences. The organization characterized the proposed AUD$2,000 visa charge as a "visa approval lottery" that will make "Australia a far less attractive destination for students".
Similarly, International Education Association of Australia (IEAA) CEO Phil Honeywood has called for targeted relief, specifically "a 50% discount for less than 12 months study programs including English language and learning abroad".
Industry representatives emphasize that the impacts extend beyond educational institutions. The previous increase has reportedly "cost 1,000s of Australian's their jobs" with businesses closing, and stakeholders warn that "another increase will see the job losses worsen".
The ripple effects of Australian visa fee increases extend far beyond education institutions, threatening to undermine key sectors of the national economy. With international students contributing approximately 40% of all tourism earnings, the impacts will be widely felt across multiple industries.
The hospitality and tourism industries are preparing for significant financial losses as international student numbers decline. Tourism operators have already reported diminishing bookings for tours, accommodations, and experiences typically purchased by visiting students and their families.
Beyond direct tourism spending, international students play a crucial role in Australia's visitor economy:
Indeed, one industry report warned that "students will just take their money and their tourism dollars to another country" as visa costs become prohibitive. This shift threatens to exacerbate existing challenges in a tourism sector still recovering from pandemic-era restrictions.
The economic fallout has already begun, with the previous visa fee increase directly linked to widespread job losses. According to English Australia, "the last visa fee increase has already cost 1,000s of Australians their jobs", with impacts concentrated initially in language schools but now spreading to adjacent industries.
Moreover, numerous businesses have already closed their doors, with industry representatives warning that "another increase will see the job losses worsen". The closure pattern is expected to accelerate if the new AUD$2,000 fee is implemented, as fewer students choose Australia for their education.
Essentially, Australia risks undermining what English Australia describes as a "golden goose" that generates billions in export earnings across multiple sectors. Business leaders predict "plummeting export earnings, significant job losses, and brain drain" as educators seek opportunities offshore while domestic tourism and hospitality sectors struggle with reduced international student customers.
With escalating australian visa costs threatening multiple sectors, industry groups are advocating for targeted exemptions to protect vulnerable educational programs from collapse.
Educational organizations have proposed specific alternatives to mitigate damage across the sector. Among the prominent proposals:
These alternatives aim to address the reality that current australian student visa fees are substantially higher than competitor nations. Unlike Australia's AUD$1,600 fee (soon potentially AUD$2,000), similar visas cost approximately US$185 in the United States and just CDN$150 (AUD$108) in Canada.
Despite proposing the fee increase, Labor has signaled willingness to consider modifications. The IEAA reports receiving "a commitment from Labor that they will be open to discussion about visa fee reductions" following the election. This potential flexibility specifically addresses IEAA's proposal regarding short-term study programs.
Currently, limited exemptions already exist. Pacific Island and Timor-Leste citizens are eligible for reduced visa costs since March 22, 2025, with partial refunds available for those who applied between July 2024 and March 2025. Additionally, students affected by COVID-19 may qualify for application fee waivers under specific circumstances.
Nevertheless, these discussions occur against a backdrop of competing proposals. The conservative opposition has pledged even steeper increases - setting minimum fees at AUD$2,500, with australia's prestigious Group of Eight universities commanding AUD$5,000 per application, potentially making Labor's proposal appear moderate by comparison.
Australia's proposed student visa fee increases undoubtedly place the country at a critical crossroads. Throughout this analysis, we've seen how the planned hike from AUD$1,600 to AUD$2,000 represents a staggering 181.7% cumulative increase over just twelve months when combined with last year's increase. Consequently, this positions Australia even further ahead as the world's most expensive student destination by visa cost alone.
The evidence overwhelmingly suggests serious consequences already unfolding across multiple sectors. ELICOS providers, specifically, have experienced a crushing 50% drop in applications following the previous increase. Meanwhile, tourism, hospitality, and related industries brace for significant economic fallout as international student numbers potentially decline.
Though Labor defends the increase as reflecting Australia's premium education value, many industry stakeholders remain unconvinced. Rather, they view this approach as primarily revenue-driven without strategic consideration of long-term impacts. The promised AUD$760 million in additional government revenue might certainly address short-term budget concerns; however, it potentially undermines a significantly larger education export sector.
Calls for targeted exemptions, particularly for short-term study programs, represent a reasonable compromise that acknowledges market realities. Labor's openness to post-election discussions provides a glimmer of hope for affected sectors. Nevertheless, the fundamental question remains whether Australia can maintain its educational attractiveness while charging visa fees dramatically higher than competitor nations like Canada and the United States.
Australia must carefully weigh immediate financial gains against potential long-term damage to its international education reputation. After all, once students choose alternative destinations, winning them back becomes exponentially more difficult than retaining them would have been initially.
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According to the latest immigration news updates, the US government has restored the SEVIS records of international students. A SEVIS (Student and Exchange Visitor Information System) is a database that the DHS uses to manage and track the data of international students (F-1 visa, M-1 visa) and J-1 visa holders in the US. Following the sudden SEVIS terminations, the US government has reinstated the SEVIS records for several international students.
Most international students, including Indians, were reported about the restoration by their Designated School Officers (DSOs). Some immigration attorneys in the US also claim that the Immigration Customs and Enforcement (ICE) is devising a framework for the SEVIS terminations that is yet to be finalized, announced, and implemented; until then, the SEVIS records of students will continue to be restored.
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USCIS reaches cap for additional H-2B visas for FY 2025
The USCIS, or U.S. Citizenship and Immigration Services, has reached the cap for an additional 19,000 H-2B visas for the second half of FY 2025. This visa is issued to international workers.
The visa was issued to foreign workers who would start their work between April 1 and May 14, 2025. The final date for submitting petitions requesting additional H-2B visas under the FY 2025 for returning worker allocation was April 18, 2025.
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Temporary Increase in H-2B Visas for FY 2025
On December 2, 2024, the U.S. Department of Homeland Security and the Department of Labor jointly published a temporary rule increasing the cap on H-2B visas by up to 64,716 additional visas for FY 2025. These visas are available only to U.S.-based businesses that require foreign workers to address the workforce shortages in the field.
To support U.S. businesses requiring workers to start work on different dates, the supplemental visas will be issued in multiple allocations, such as two for the second half of FY 2025.
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Out of the 64,716 supplemental visas, returning workers will be issued 44,716 visas. These workers received an H-2B visa or were authorized the H-2B status in the last three fiscal years. The other 20,000 visas are for Guatemala, El Salvador, Haiti, Honduras, Ecuador, Colombia, and Costa Rica nationals. To qualify for the additional H-2B visas, the applications must be filed in the U.S. by September 15, 2025.
This increase is for a limited time and does not affect the H-2B program in the upcoming fiscal years.
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The removal of the bonus Express Entry points for arranged employment on March 25, 2025, significantly changed the composition of the CRS score composition. Candidates in the Express Entry pool saw their CRS scores decrease by 50 or 200 points, affecting their chances of receiving an ITA for Canada PR.
Some of the major changes to the CRS score range are as follows:
CRS score range |
Decrease in profiles |
501-600 |
5,740 |
491-500 |
1618 |
481-490 |
984 |
The CRS score ranges mentioned in the above table have cumulatively witnessed a reduction of 8,342 profiles from March 16 to April 14, 2025. After additional points were removed, the profiles were reallocated to lower CRS score ranges within the Express Entry candidate pool.
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Despite the Express Entry changes, the overall candidate profiles rose by 7,373. The table below has a complete breakdown of the CRS score ranges and the changes in the Express Entry profiles within that range:
CRS score range |
Change in Express Entry profiles |
601-1200 |
+123 |
501-600 |
-5,740 |
451-500 |
+1,487 |
491-500 |
-1,618 |
481-490 |
-984 |
471-480 |
+182 |
461-470 |
+2,157 |
451-460 |
+1,750 |
401-450 |
+5,814 |
441-450 |
+1,817 |
431-440 |
+1,722 |
421-430 |
+1,465 |
411-420 |
+1,101 |
401-410 |
-291 |
351-400 |
+1,677 |
301-350 |
+1,496 |
0-300 |
+2,516 |
Total |
+7,373 |
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The table below has details of the existing composition of the Express Entry candidate pool, dated April 14, 2025:
CRS score range |
Number of candidates |
601-1200 |
816 |
501-600 |
19,782 |
451-500 |
71,542 |
491-500 |
12,093 |
481-490 |
12,359 |
471-480 |
16,215 |
461-470 |
16,189 |
451-460 |
14,686 |
401-450 |
67,301 |
441-450 |
14,131 |
431-440 |
14,740 |
421-430 |
13,084 |
411-420 |
13,020 |
401-410 |
12,326 |
351-400 |
53,479 |
301-350 |
22,799 |
0-300 |
8,563 |
Total |
2,44,282 |
The Express Entry pool witnessed an increase of candidate profiles by 25,792 between 2024 and 2025. The exclusion of Express Entry points for arranged employment indicates that the CRS score ranges below have the same number of profiles as of December 2024.
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Your chances of securing a US study visa in 2025 face unprecedented challenges as the landscape of international education undergoes a dramatic shift. The number of Indian students choosing the United States dropped by 13%, falling from 234,500 in 2023 to 204,000 in 2024. In fact, the overall count of Indian students studying abroad decreased from 893,000 to 759,000 during this period, marking a significant 15% decline in degree-seeking students.
However, while traditional Study Abroad destinations like the US, Canada, and the UK experience declining numbers, emerging study destinations tell a different story. Germany witnessed a remarkable 68% increase in Indian student enrollment from 2022 to 2024, while New Zealand reported an extraordinary 354% growth. These shifts reflect changing visa policies, financial requirements, and growing concerns about the depreciation of the Indian rupee against the US dollar, directly affecting your study abroad costs and choices.
The global education landscape is witnessing a significant reshuffling as Indian students increasingly abandon traditional study destinations in favor of emerging education hubs. This fundamental shift comes amid growing visa uncertainties, rising costs, and changing immigration policies affecting study abroad decisions.
European countries and New Zealand have emerged as the biggest beneficiaries of Indian students' changing preferences. Germany experienced a remarkable 68% increase in Indian student numbers from 2022 to 2024, growing from 20,700 to 34,700. Additionally, Indians have become the largest international student cohort in Germany, with nearly 50,000 students. The country's appeal stems from high-quality education combined with substantially lower tuition fees compared to traditional destinations.
France has similarly positioned itself as a rising star, setting an ambitious target to host 30,000 Indian students by 2030. The country has already seen a steady increase, with numbers rising from 6,406 in 2022 to 8,536 in 2024—representing a 33% growth over this period. French universities offer nearly 2,000 English-language programs alongside a new French-language foundation program specifically designed for Indian applicants.
Perhaps most striking is New Zealand's meteoric rise in popularity, recording an extraordinary 354% increase in Indian student numbers from 2022 to 2024 (from 1,600 to 7,300). The country has earned enthusiastic endorsements, with nearly nine out of ten international students rating it as a positive study destination. New Zealand's education sector aims to increase its economic contribution to approximately INR 371.27 billion by 2027.
Other emerging destinations gaining traction include:
Conversely, the United States—long considered the premier destination for Indian students—is experiencing a significant decline. US enrollment dropped by 13% from 2023 to 2024, falling from 234,500 to 204,000. Moreover, active Indian student counts took a sharp dive from 348,446 in July 2024 to 255,447 in August 2024, marking a 28% year-on-year decrease by March 2025.
Several factors are driving this decline. First, visa uncertainties have intensified since Trump returned to office. The American Immigration Lawyers Association (AILA) reported that Indian students make up nearly 50% of visa cancelation cases. A survey examining 327 responses found half of all visa revocation notices were issued to Indians.
Furthermore, financial pressures have become insurmountable for many families. The average tuition fee at top US colleges approaches USD 50,000 annually, with total annual costs (including living expenses of USD 15,000-20,000) easily exceeding USD 65,000. These figures become especially problematic when considering the rupee's depreciation against the dollar, which effectively creates "hidden inflation" for Indian families.
Education loan providers have noticed this shift, with some firms reporting that "enquiries and applications for US loans have halved compared to last year". Lenders are consequently tightening their evaluation processes, prioritizing applicants with strong academic profiles and admissions to top-tier universities.
The potential termination of the Optional Practical Training (OPT) program—which allows international students to work in the US for up to three years after graduation—threatens to further accelerate this decline. As one engineering graduate from Chennai explained when declining a US university offer in favor of Germany: "With tougher work visas, it doesn't just make sense to study there as jobs are not guaranteed".
Shifting visa landscapes and political changes are dramatically altering the calculus for Indian students contemplating overseas education. Recent policy developments have created a complex web of challenges for those navigating international study options.
The return of Trump administration policies has triggered immediate concerns for Indian students. Several prestigious institutions including Cornell, Columbia, and Yale have unofficially advised international students against leaving the country due to fears about re-entry difficulties. The atmosphere of uncertainty has led to behavioral changes, with many students canceling summer travel plans. The US Department of State has clarified that visas are now considered privileges rather than rights, leading to a zero-tolerance policy toward even minor violations.
A newly proposed bill threatens to eliminate the Optional Practical Training (OPT) program, which currently allows international graduates to work in the US for up to three years after completing their degrees. This potential change would particularly impact STEM students, who benefit from extended work authorization:
If passed, this legislation would force many students to either immediately secure an H-1B visa or leave the country. The bill arrives amid concerns from critics who describe OPT as "unauthorized by Congress" and "plagued by diploma mills".
Despite this, alternative destinations are also implementing stricter requirements. Canada has discontinued its Student Direct Stream fast-track visa processing system and now requires language proficiency tests for post-study work visas. Nevertheless, work hour limits have increased from 20 to 24 hours weekly.
Likewise, Australia has introduced tougher financial requirements, with students now needing to show proof of AINR 2,506,943.19. The country has also implemented stricter language proficiency standards and plans to cap international student enrollments at 270,000 for 2025.
Currency fluctuations have emerged as a major obstacle for Indian students considering US education. The financial equation for funding international education has fundamentally changed, creating additional barriers beyond visa concerns.
The Indian rupee's depreciation against the US dollar has created a hidden inflation layer for education costs. Over the past year, the rupee has weakened from ₹82 to ₹87 per dollar, significantly increasing the financial burden on families. This depreciation has affected every aspect of studying abroad:
This financial pressure extends beyond tuition to accommodation, food, and transportation. For undergraduate programs with total costs exceeding ₹1.5 crore in the US, even minor currency fluctuations create major financial implications. According to experts, this depreciation essentially functions as "hidden inflation" for Indian students.
In response to these financial uncertainties, lending institutions have modified their approach toward US-bound students. Currently, 70-80% of Indian students fund their education through loans, with average amounts typically ranging from ₹42-84 lakh.
Financial institutions have increased loan sanction limits, with some now offering up to ₹3 crore. Simultaneously, they've implemented stricter evaluation criteria, prioritizing applicants with strong academic profiles and admissions to top-tier universities. This cautious approach stems from growing concerns about repayment ability, given the uncertain political climate and potential hiring slowdowns.
Previously, many students relied on post-graduation employment to repay loans in dollars. As work opportunities become less certain, lenders report that "enquiries and applications for US loans have halved compared to last year", indicating a significant shift in student confidence regarding financial returns on US education.
Recent trends certainly point toward a significant transformation in global education choices for Indian students. Your study abroad decisions now face complex challenges, from visa uncertainties to currency fluctuations. The US market share dropped 13% between 2023-2024, while alternative destinations like Germany and New Zealand recorded remarkable growth rates of 68% and 354% respectively.
The financial equation has changed drastically. Your education costs now battle against rupee depreciation, which added nearly 24% to overall expenses since 2018. Meanwhile, lending institutions have responded with stricter loan approval criteria, especially for US-bound students.
Political shifts have reshaped the landscape too. Trump-era policies created additional hurdles, particularly through potential changes to the OPT program. As a result, many students like you now evaluate opportunities in countries offering more stable visa policies and affordable education options.
Above all, your study abroad journey requires careful consideration of multiple factors - from visa stability and financial requirements to post-study work opportunities. Therefore, success lies in thorough research and planning, focusing on destinations that align with both your academic goals and practical constraints.
Q1. How has the trend of Indian students studying abroad changed recently?
There's been a significant shift in study abroad preferences for Indian students. While traditional destinations like the US have seen a decline, countries like Germany, France, and New Zealand have experienced substantial growth in Indian student enrollments.
Q2. What factors are influencing Indian students' choices for study abroad destinations?
Several factors are influencing choices, including visa policies, political climate, financial considerations, and post-study work opportunities. Currency fluctuations, particularly the depreciation of the Indian rupee against the US dollar, have also played a significant role in decision-making.
Q3. How are visa policies affecting Indian students' study abroad plans?
Visa policies have become a major concern, especially for US-bound students. Stricter policies and uncertainties have led many students to reconsider their options, with some prestigious institutions even advising international students against leaving the country due to re-entry concerns.
Q4. What financial challenges are Indian students facing when planning to study abroad?
Indian students are facing increased financial pressure due to currency depreciation, which has inflated study costs. Additionally, lending institutions have tightened loan approval criteria, especially for US-bound students, making it more challenging to secure education loans.
Q5. How are universities and education consultants responding to these changes?
Universities and consultants are adapting to new student preferences by expanding hybrid programs and alternative pathways. They are also guiding students towards countries with more stable visa policies and affordable education options, helping them navigate the complex landscape of international education.