International students and Hales Institute - the tip of a dangerous iceberg

The unfortunate reality is that many private operators were opened solely to target the market now being effectively shut own. There will be a ripple effect on the sector, with more private colleges likely to close in the near future.

Where does this leave the current students who have already paid for the courses and wanting an education? Where is their safety net?

International education contributed $17.2 billion to the economy in 2008-09. Instability in the sector caused by perceived racial violence and immigration policy have already caused students to leave Australia. Those who were planning to come may now decide to study in other countries.

The strong Australian dollar also means that other countries are more attractive to international students. Like all policy changes, there will be a time delay before the full effects will be felt locally.

With the likely drop in student numbers, businesses that serve a large number of international students - such as phone companies, ethnic grocery stores, some local restaurants, education and migration agents - will experience the side effect of the drop in businesses.

There is a strong connection with international education and tourism, because parents and friends of international students come for holidays and to attend their graduation at the end of their degree. If students go elsewhere to study, so will this tourism.

The major problem lies with shonky operators who do not provide quality education to those who are here, damaging students’ work prospects and Australia’s reputation as a quality education provider.

The final responsibility here lies with the government. Why did the government allow third rate private colleges to pass quality audits? How can colleges continue to provide misleading photos on their websites indicating a friendly, relaxed environment with grassy areas for work and study, when they operate in a cramped office building with small classrooms and a wafer-thin syllabus?

Shonky providers would not exist if the government didn’t issue them with a license.

It seems the government is panicking and instead of removing the providers and agents who have misled students into believing that there is a short cut to permanent residency, they punish the students instead.

If this is the path the government insists on taking, it must also provide sufficient support for affected students, including the assurance that if providers close down, legitimate student living expenses will be reimbursed.

The announcement by Education Minister Gillard that an extra $5 million will be put into the Education Services for Overseas Students Assurance Fund shows the government knows that policy change can be costly. But if international students lose confidence in Australia’s ability to run a robust system, the cost to our economy will dwarf that.