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Significant Shifts in International Education

Tess Wilkinson

Tess Wilkinson

Tess Wilkinson is Director of Education Services at Henley & Partners Education.

International education offers invaluable benefits, from broadening cultural horizons to opening pathways for global career opportunities. But the landscape is undergoing significant changes, with tightening policies limiting opportunities for students and their families. As traditional pathways face increasing restrictions, investment migration has emerged as a strategic alternative, offering wealthy investors a secure and flexible route to global education opportunities for their families.

A study by international student placement firm IDP, Emerging Futures. The Voice of the International Student, conducted in 2024 noted that in response to policy changes, a significant portion of students are reconsidering their plans to study in Australia, Canada, and the UK. The USA has picked up a notable share and took the top spot as first-choice destination, dethroning Australia and Canada, which were previously joint-1st. But with the President-elect Donald Trump due to return to office this month, things could change for international students in the USA.

The knock-on effect of Australia’s policy changes

In August 2024, the Australian government announced that subject to legislation being passed it would cap the number of new international students in the higher education and vocational education and training (VET) sectors at 270,000 for 2025. Previously no caps were in place.

Happy graduates in cap and gown hugging outdoors

Publicly funded universities will be allocated 145,000 new international student commencements, similar to 2023 levels, while private universities and non-university higher education providers will be limited to 30,000, estimated to be around 2019 levels, and VET providers will be capped at 95,000.

The intention is to ensure the sustainable growth of the sector and support universities affected by the pandemic and uneven patterns of student returns. However, the reaction of Australian higher education institutions has not been favorable — especially private universities and VET providers that recruit higher numbers of international students and are hit harder by the new caps.

Universities Australia’s chair David Lloyd highlighted that the government’s measures to regulate migration numbers should not disproportionately affect any single sector — particularly one as economically vital as education, which is Australia’s second biggest export industry.  

Recent policy changes have led to significant delays and widespread rejections of visa applications, creating a ripple effect that has seen many international students turn their attention away from Australia.

Declining demand in the UK and Canada

A similar story is developing in the UK. While the primary goal of new rules that were implemented by the Conservative administration under Rishi Sunak in 2024 was to curb the number of visas issued to dependents of international students — which has been achieved, with only 19,100 applications from dependents of students between January and October 2024, a marked 85% decrease compared to the same period in 2023 — student visa numbers have also dropped. The inability to bring family members and the added insecurity surrounding the Graduate Route, which enables  students to obtain residence rights in the UK for two years following their graduation, are leading many international students to look elsewhere.

According to Diana Beech, the chief executive of London Higher, a membership organization for universities in the UK’s capital, the decline in international visa applications, driven predominantly by restrictions on dependents and the negative rhetoric surrounding higher education from the previous government, presents a significant concern for UK universities.

The same pressures are being felt in Canada, where demand has been falling for some time, especially from India, with a shocking drop of 40% between February 2023 and January 2024. While this is partly owing to restrictive policies and significant processing delays, some experts believe that Canada’s brand position as an education destination is weakening in India.

As a result, the USA is increasing its visa handling capacity for India and taking on the majority of the interest that Australia, Canada, and the UK are missing out on due to their policies.

A gateway to opportunities

While the USA and other countries may be welcoming in the moment, the abovementioned policy changes seen in some of the top education hubs in the past 12 months indicate that students and their families can never be too sure. In December, the University of Southern California warned its 17,000 international students to return from their vacation break ahead of President-elect Donald Trump commencing his second term in case executive orders following his inauguration impact on re-entry. It always pays off to have a plan B, and investment migration programs offer pathways into countries that are prime education locations.

In America, the US EB-5 Immigrant Investor Program grants permanent resident status to qualifying investors and their children, who will therefore not be considered international students or subjected to international admissions quotas. And once their studies have been completed, the opportunities expand significantly. Consider an entrepreneurial Chinese high-net-worth investor wishing to a secure their child’s access to an Ivy League college. The four-year degree could cost USD 250,000 before housing and subsistence costs. But if they instead opt for the US EB-5 Immigrant Investor Program, in addition to benefiting from lower tuition fees, their child would graduate with a degree as well as permanent residence rights in the USA, multiplying their career and wealth creation opportunities, given that America’s median salaries are five times higher than China’s, and tech sector equity compensation potential is exponentially greater in Silicon Valley.

Gaining the right to live, work, and study in the USA via the US EB-5 Immigrant Investor Program requires a minimum investment of USD 800,000 in a new commercial enterprise and a plan to create or preserve 10 permanent full-time jobs for qualified US workers. Compared to the lifetime earning potential for the family and future generations once they have permanent residence, and, potentially, citizenship privileges that is a proportionally modest amount to invest.

The far-reaching impact of investment migration

Unlike students who attend schools or universities on student visas — often required to return to their home countries or navigate complex post-graduate work permit applications — the children of investment migration participants benefit from a more straightforward path to remaining in destination countries. This allows them to access local labor markets more easily.

In essence, investment migration has a cumulative effect that extends beyond financial advantages and access to education, encompassing broader benefits such as an enhanced quality of life. The power of education and expanded access through investment migration in creating opportunity and driving success and prosperity is clear.

Expanding horizons in Europe through residence by investment

The benefit of access acquired through investment migration is also clear in Europe, where investing in a residence program in a European Union country, which ultimately enables you to apply for citizenship, can offer a multitude of options. Portugal has become a top choice for families worldwide, from the USA to the Philippines. A family with young children could consider the Portugal Golden Residence Permit Program, where the minimum investment requirement is EUR 250,000. They can apply for Portuguese citizenship after maintaining residence for five years, after which the family can benefit from extensive opportunities. As Portuguese citizens, they will have the option to live, work, and study across the European Union. It is certainly an investment well worth making in the here and now, which in addition to residence rights in Portugal also generates multiple opportunities.

In a rapidly evolving global landscape, securing access to education and career opportunities requires forward-thinking strategies. Investment migration programs provide an invaluable avenue for families to not only enhance educational prospects but also secure a robust foundation for future generations. By choosing the right programs, investors can transform educational aspirations into lasting legacies of opportunity and success.

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Henley & Partners assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.

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