UK universities could be risking as much as £500m each year in late fee payments from international students.
Consider that number for a moment. To drive best in class income collection practices across the sector, universities need to take a step back. Different international student populations have different needs, but continuing to address each with one-off policy updates or proposals will not position UK institutions to ensure long-term student and institutional success. Geopolitical uncertainty is a certainty. The policy settings that work today may not be the ones that position universities best, the right ones to mitigate risk and address the opportunities and risks that arise in the future.
In this effort, clarity and cross-departmental collaboration are crucial. Students must understand the policies. Departments must work together to catch students when they need help and deliver the solution that is the best fit. An agile, but predictable approach, will safeguard against risk and strengthen income management.
To evolve takes a solid understanding of the state of things as they are – which was the aim of our groundbreaking research on income collection policies at UK universities. Flywire commissioned a survey of 44 institutions (27% of institutions and close to 40% of international students in the sector) to learn about the policies and strategies for income collection.
The findings can help institutions:
Key insights at a glance
Default rates on international student tuition fees
A significant proportion of institutions (28%) report default rates exceeding 10% in the 2022/23 academic year, indicating a severe issue with fee collection from international students. UK universities could be risking as much as £500m each year in late fee payments from international students.
Average deposit requirement for new international students
Deposit requirements have become a hot topic with over 50% of institutions making an adjustment to their deposit policy in the past year to mitigate financial risks. Deposits for new international students vary widely across UK universities.
Institutions approach to instalment plans
Instalment plans can provide students with flexibility and affordability. The range of instalment plan options offered to international students reflects differing risk management strategies, but also indicates this is an area where the sector has diverging views on best practice.
Change in the number of students sanctioned from 2022-2023 vs. 2023-2024
The majority of institutions (95%) impose sanctions for non-payment of fees. 43% of institutions saw the number of students sanctioned for non-payment of fees increase from academic year 22/23 to 23/24. Indicating a growing challenge in student financial management.
