UCL Braces for £42M Loss as UK Levy Threatens International Student Income
University College London (UCL) is bracing for significant financial losses due to the UK government's proposed levy on international student loans. The prestigious institution could face losses of up to £42 million annually, as it heavily relies on non-UK students for its income.
UCL's predicament stems from an 'extraordinary surge in demand' for places, which led to it exceeding its allocation of Confirmations of Acceptance for Studies (CAS) for international students. This surge resulted in a high number of international students, with 52% of UCL's student body coming from overseas in the 2024/5 academic year.
The proposed levy, which is set to tax income from international student loans, is expected to hit UCL hard. The institution derives a substantial 79% of its tuition fee income from non-UK students. This significant reliance on international student loans has put UCL at risk of substantial financial losses, potentially reaching £42 million per year.
UCL has taken steps to mitigate the impact of the situation. It apologised for the disruption caused and assured affected students that they can now begin their studies. The university also offered to pay £1,000 for students to use the UK Visa and Immigration's 'super priority service'. Despite these measures, hundreds of international students were contacted and told they would have to defer their studies until 2026. The proposed levy continues to pose a significant challenge for UCL and other universities heavily reliant on international student income.
