Janice Lozano
International students are a significant source of revenue for universities in many countries, including the US, Canada, the UK, and Australia. These students often pay significantly higher tuition fees than domestic students, sometimes two to four times the amount. For example, international undergraduate students at Cambridge and Oxford universities in the UK pay around $33,000-$35,000 per year, compared to $12,750 for UK/EU students. In the US, international students may also pay special fees for visa processing and English language exams. Various factors influence the determination of tuition fees for international students, including the reputation of the institution, the cost of living in the region, and the demand for higher education in that country.
| Characteristics | Values |
|---|---|
| International students pay more than domestic students | In the US, international students pay up to three times more than domestic students at public universities. At Cambridge and Oxford, international undergraduate students pay $33,000-$35,000, while domestic students pay $12,750. |
| International students pay full price for tuition | In the US, international students commonly pay full price for tuition, while domestic students often receive financial aid or pay lower in-state tuition. |
| International students subsidize domestic students' tuition | In the US, international students subsidize tuition costs for domestic students, contributing more than $9 billion annually to public universities. |
| International students pay special fees | International students may pay special fees for services and programs, such as visa processing and English language exams. |
| International students' fees may be higher due to their tax status | At Purdue University, a university official justified higher fees for international students by stating that they do not pay state or federal taxes, unlike domestic students. |
| International students may receive scholarships | The University of Ottawa offers scholarships to international students, such as the Differential Tuition Fee Exemption Scholarship and the International Doctoral Scholarship. |
| International students may face higher living costs | When studying in Canada, international students should consider the varying cost of living across provinces and territories, including housing, textbooks, and other expenses. |
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What You'll Learn
International students subsidise US students
The US is the world's top destination for higher education, with more than 1 million international students contributing over $40 billion each year. International students typically pay more than US students, with international students and out-of-state students paying one and a half to three times as much as in-state students. This is because US students often receive financial aid directly from universities or other federal programs. Additionally, in-state students and out-of-state students may pay state or federal taxes, while international students and their families do not.
International students also pay special fees for things like visa processing and English language exams. At some universities, international students pay a tuition rate that is even higher than regular out-of-state tuition. For example, at the University of Wisconsin, there is a $1,000 surcharge for international undergraduate students, bringing the total fee increase from $1,200 to $4,000. Other universities charging higher rates for international students include Ohio State, Purdue, Illinois, Michigan State, and Pennsylvania State universities.
The higher tuition fees paid by international students help US universities balance their books. In recent years, there have been cuts to state funding for education, and international students' tuition fees have helped to make up for these budget shortfalls. A percentage of the higher fees from international students may also be used to fund scholarships for US students.
While critics argue that international students take spots away from US students, university administrators have defended international students, stating that they provide much-needed tuition revenue that helps subsidize the cost of enrolling additional domestic students. This is known as cross-subsidization, where the high net tuition revenue from international students helps offset the costs of enrolling US students. Overall, international students contribute significantly to the US economy and help support the financial health of US universities.
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International students pay higher fees
In the United States, international students contribute significantly to the economy, with more than 1 million international students generating over $40 billion each year. The majority of these students pay full tuition fees, which can be two to three times higher than what domestic students pay. This is because U.S. students often receive financial aid directly from universities or federal programs, and at public universities, many benefit from lower in-state tuition. Additionally, international students may pay special fees for visa processing and English language exams.
Similarly, in the United Kingdom, international students face higher tuition fees at prestigious universities such as Cambridge and Oxford, where annual tuition for international undergraduate students in management and computer science can reach $33,000 to $35,000, compared to $12,750 for UK/EU students. This trend is also observed at King's College London, where international students pay over twice as much as domestic students for a BA in English.
Canada follows a similar pattern, with international students sometimes paying three to four times the tuition of Canadian students. For example, at the University of British Columbia, international students pursuing an undergraduate arts degree pay over $20,000, compared to around $3,800 for Canadian students.
Australia is also known for charging significantly higher fees to international students. For instance, a basic science degree at Melbourne, Sydney, or Queensland University costs about $8,500 per year for Australian students but $35,500 for international students.
The higher fees charged to international students have become a source of tension, with some viewing these students as cash cows or scroungers of national resources. However, it is important to note that international students often pay their own way, with about 60% of them self-funding their education, and over 80% relying primarily on personal or family funds or borrowed money.
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International students bring in revenue
International students bring in significant revenue for universities and colleges in several countries, including the United States, the United Kingdom, Canada, and Australia. In the US, more than 1 million international students contribute over $40 billion to the economy annually, with most of these students paying full-price tuition. This makes the US the world's top destination for higher education. International students in the US pay two to three times the amount paid by domestic students, and this revenue helps to subsidize the tuition costs of American students and keep universities running.
Public research universities in the US, in particular, have come to rely on international students to compensate for declines in state funding for education. The University of California campuses, for example, agreed with state lawmakers to cap the number of international students they enroll in exchange for more funding from the state. International students may also pay special fees, such as for visa processing and English language exams.
The higher fees charged to international students have been justified by universities in various ways. For instance, a Purdue University official stated that international students do not pay state or federal taxes, unlike domestic students. However, critics argue that international students contribute to the local economies of their host states and indirectly pay taxes. Additionally, universities argue that their reputation and the quality of the student experience justify the higher fees.
International students also bring in revenue for the UK, Canada, and Australia. At Cambridge and Oxford, international undergraduate students of management and computer science pay $33,000-$35,000 in annual tuition fees, compared to $12,750 for UK/EU students. In Canada, international students at the University of British Columbia pay over $20,000 for an undergraduate arts program, while Canadian students pay around $3,800. Similarly, in Australia, a foreign student at Melbourne, Sydney, or Queensland University pays about $35,500 for a basic science degree, compared to $8,500 for an Australian student.
Beyond tuition fees, international students also contribute to the economy through their spending on accommodations, transportation, food, consumer goods, and entertainment. They also bring academic and cultural value to campuses and local communities, providing international perspectives in classrooms and becoming part of global alumni networks.
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International students pay for recruitment
International students' higher tuition fees are often used to fund scholarships for domestic students. Universities also have to spend on recruitment roadshows abroad to attract international students. These recruitment drives are necessary as international students are increasingly becoming a crucial source of revenue for universities in the US, UK, Canada, and Australia.
US
The US is the world's top destination for higher education, with more than 1 million international students generating over $40 billion each year. International students in the US pay two to three times the tuition fees of domestic students. This is because international students do not pay state or federal taxes, unlike domestic students. However, this argument has been opposed, as international students contribute to the local economies of the state and indirectly pay taxes.
UK
The UK experienced a significant period of growth in international student numbers between 2019 and 2022, with the number of international students in UK higher education reaching an all-time high of 758,855 in the academic year 2022/23. However, the attractiveness of the UK as a study destination has since declined due to political and market factors. The previous government's measures to curb net migration, such as restrictions on dependent visas and increased visa and immigration costs, have impacted international student recruitment. The new government has tried to counter this by expressing its welcome of international students and reaffirming its commitment to the Graduate Route Visa.
Canada and Australia
Canada and Australia have also seen a rise in international student numbers, with Canada experiencing a 32% decrease in study permit applications after implementing a cap on international student numbers in 2025. International students in Canada pay three to four times the tuition fees of Canadian students. In Australia, a basic science degree at Melbourne, Sydney, or Queensland University costs about $8,500 per annum for an Australian student compared with $35,500 for a foreign student.
International student recruitment is a significant aspect of higher education institutions, as evidenced by the existence of dedicated roles and departments focused on this area. Universities invest in recruitment roadshows abroad and on-campus support services to attract and support international students. These efforts are driven by the financial contributions of international students, who often pay full tuition fees and spend money on housing, groceries, and books in the local community.
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International students pay visa fees
International students are required to pay visa fees, which can vary depending on the country and type of visa. In the United States, international students seeking to study in the country must obtain a student visa (F or M) , which involves paying the Student and Exchange Visitor Program (SEVP) fee, commonly known as the SEVIS I-901 fee. This fee is typically paid after receiving acceptance from a SEVP-approved school and before applying for the student visa at a U.S. Embassy or Consulate. The visa application process may also include additional fees, such as the visa issuance fee, which depends on the applicant's nationality.
In Australia, international students applying for the Student Visa (subclass 500) experienced an increase in visa fees from 710 to 1,600 Australian dollars in July 2024. This change reflects the country's commitment to restoring integrity in the international education sector. The Training Visa (subclass 407) is another option for international students seeking practical workplace-based training in Australia.
New Zealand offers the Fee Paying Student Visa, which allows international students to study full-time in specified programmes, including schools, tertiary education, and English language courses. The Pathway Student Visa is another option that permits studying up to three consecutive programmes under one visa, along with part-time work opportunities.
It is important to note that visa fees are separate from tuition fees and other associated costs of studying internationally. International students should carefully review the visa requirements and fee structures of their intended destination country to ensure a smooth application process.
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Frequently asked questions
International students often pay higher tuition fees because they don't qualify for federal or state financial aid that is available to domestic students. Additionally, universities may charge international students higher fees to compensate for cuts in state funding for education.
International students can pay up to three times more than domestic students at public universities in the US and Canada. For example, at Arizona State University, international undergraduates paid $28,270 in base tuition and fees for the 2016-17 academic year, compared to $10,370 for in-state undergraduates.
International student tuition fees can vary depending on the student's country of origin and their residency status. For example, at the University of Ottawa, international students who are Francophone or Francophile may be eligible for a Differential Tuition Fee Exemption Scholarship.
