30% drop in student placements amid global visa crackdown? IDP rings alarm

Business Standard

4 days ago

Student placement company IDP Education Ltd expects student placements to drop by as much as 30% this financial year, while language testing volumes are forecast to slip by up to 20%. The company said on Tuesday that it would review its costs as a result.
What's going on?
'While elections have now been held in all key destination markets, policy uncertainty and negative rhetoric continues, while economic uncertainty has increased,' said IDP.
'Governments in all key destination countries are currently seeking to temporarily reduce migration levels, and economic and geopolitical uncertainty has increased,' the statement added.
IDP said this environment is making it harder for international students in the UK, Australia, Canada and the US.
• In the UK, the Immigration Policy White Paper released on May 12, 2025, has raised concerns about further restrictions on student immigration
• In Australia and Canada, policies remain tight, with further changes expected
• In the US, the environment for international students has become more challenging, with visa rejections rising and new visa appointments paused
UK adjusts student visa policies
The UK still allows the Graduate Route, though dependants are no longer permitted on student visas. IDP reported a 9% drop in visa issuance compared to last year.
The Immigration White Paper recommends higher salary thresholds and English language requirements for skilled worker visas, as well as a 6% levy on universities for enrolling international students. It also proposes reducing the Graduate Route from 24 months to 18 months.
Australia places caps and raises fees
In Australia, proposed permanent student caps were not passed, but visa processing has slowed as institutions reach their 80% 'soft cap' limits under Ministerial Direction 111. Visa fees rose from A$710 to A$1,600 in July 2024, with further increases on the table.
The government has also limited onshore applications, meaning more students must apply offshore. Graduate visas now have an age cap of 35, down from 50.
IDP said these changes have slowed offer turnaround times and affected enrolments.
Canada cuts work permits and student caps
In Canada, the Post-Graduation Work Permit (PGWP) has been restricted since November 2024 to students in high-demand occupations. Fast-track visa schemes such as the Student Direct Stream ended late last year.
Spousal open work permits are now only available to partners of students in fields like medicine and engineering.
IDP said visa issuance has plummeted by 65% in Canada this year, with a 10% cut in study permit numbers planned for 2025.
US visa pauses and Chinese student revocations
In the US, IDP said visa rejections have jumped sharply, and new visa appointments were halted temporarily on May 27, 2025, to allow for expanded social media checks.
The US government has also revoked visas for some Chinese students linked to critical fields or with ties to the Chinese Communist Party. IDP noted a 27% drop in US visa issuance compared to the previous year.
Key figures for the year so far, according to IDP:
• Australia: visa issuance down 10%
• United Kingdom: visa issuance down 9%
• Canada: visa issuance down 65%
• United States: visa issuance down 27%
• Student placement volumes down 28-30%
• Language testing volumes down 18-20%
'Challenging immigration conditions continue to weigh on demand,' IDP said.
The bigger picture: Global education faces a crossroad
Against this backdrop, Indian students are turning to new destinations like Germany, Ireland, New Zealand and Russia.
India's education ministry data showed the number of Indian students in Germany rose 68% to 34,702 in 2024, up from 20,684 in 2022. New Zealand saw a 354% jump, from 1,605 to 7,297. Ireland saw a 49% rise, and Russia 59%.