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£50M: Universities warn this is what new UK visa rules could cost them every year.

SCOTTISH UNIVERSITIES face losing £50 million a year if Westminster insists on tough new visa rules for international students, according to several influential educational bodies and senior university officials.

The warning comes six weeks before the student tier of Britain's new points-based system goes live at the end of next month. With dozens of issues unresolved, education experts fear the UK will replicate mistakes that the US made post-9/11 and create a prohibitively complicated system.

Universities are concerned that, under current proposals, student visas will last a maximum of four years, even if a student is on a five-year course such as medicine. They fear that having to apply for an extension after four years will put students off studying in the UK.

In addition, student groups warn that "a plethora of hoops" for international students to jump through, including registering at local police stations and needing security clearance from the Foreign Office to study certain subjects, will further deter overseas students.

According to the Russell Group, an association of 20 research-intensive universities, including the University of Edinburgh and the University of Glasgow, there is already strong evidence that visa and immigration issues are an area of concern for international students before they come to the UK.

This has led some to draw comparisons to what happened to US universities following the changes to visa laws after 9/11. US institutions saw a drop in international student numbers by nearly a third. It is suggested that if the same pattern occurs here, as some experts warn could happen, Scottish universities lose more than £50m in fees from the lucrative overseas market.

It is estimated that international students bring £5 billion into the UK, split evenly between fees and spending. Scottish universities, which can set their own fees for overseas students, receive £160m from international students. In a tight financial settlement from Holyrood, universities have become increasingly reliant upon recruiting abroad to supplement their income.

Higher education bodies stepped up their pressure on the UK Borders Agency (UKBA) last week. On Tuesday, Universities UK, which represents all British institutions, wrote to its members asking principals to urgently petition MPs to allow a visa to last the entire length of a student's degree. On Friday, Universities Scotland, which represents the country's 20 higher education institutions, confirmed it had written to the Scottish secretary, Jim Murphy, expressing serious concerns about the situation.

In an email to universities, Diana Warwick, chief executive of Universities UK, wrote: "This is a broader issue that affects the entire sector and our international standing."

Of prime concern was the proposal to only allow international students a maximum initial stay of four years. Students doing five-year degrees, such as medicine, dentistry, architecture, veterinary science and some pharmacy courses, would have to apply for an extension before the end of their course.

"This is bound to affect their decisions about whether to come to the UK in the first place, and in any case it is unfair that these students, who are investing considerable financial and other resources in studying in the UK, will not have any certainty that after four years of study they can continue and complete their qualification in the UK," said Warwick.

The Russell Group delivered a starker warning. Director-general Dr Wendy Piatt said unless the UKBA reconsiders the proposals "as soon as possible", there is "a serious risk that the UK will fail to attract to this country the most talented international students, resulting in real damage to this country's medical research and education, to our universities, and to the UK economy".

A Universities Scotland spokesman said: "Scotland needs its overseas students. Scaring them away with complex regulations would be madness for our economy and madness for our society. We should be welcoming these students, not making life more difficult. With America opening its doors to students again, and many other countries stepping up recruitment strategies, this is the worst possible time to tie the hands of Scottish universities recruiting overseas."

The Scottish government also joined the chorus of discontent. A spokeswoman said: "We share the concerns of our institutions about a possible reduction in the number of international students who will come here and also the additional costs the new system will entail. We want to ensure Scotland continues to attract the brightest and best overseas talent to build a wealthier and fairer nation and will continue to work closely with the Home Office and insist Scottish needs are met as the points-based system is rolled out."

According to Steven Magee, vice-principal of external relations at St Andrews University, home to the highest percentage of American students in the UK, the government is not learning from America's mistakes. He said there are parallels between "the onerous system of processing" that prevented students entering the US following 9/11 and what the UKBA is proposing.

Asked if Scottish and UK universities could lose the same amount of money as US institutions, he said: "There is a very real risk that our border agency will cause the same effect in the UK at a time of world economic shrinkage. There is a contradiction here. We are being encouraged by the government to recruit overseas students, but on the other hand they are making it very difficult."

The proposals require three things of international students: a visa letter from a UK university registered as a sponsor; proof of funds to support themselves; and a clear immigration history.

But the UK Council for International Student Affairs claims what should be a simplification of the system has been compromised by Westminster's demand for universities to obtain significantly more documentation from applicants.

"Some of these will cause massive changes to computers and IT processes," said Dominic Scott, UKCISA chief executive. "And because none of these requirements has been clear, even now, it is somewhat unrealistic for everyone to change their processes within the next six weeks."

He said other conditions on overseas students - registering with police within seven days of arrival, visiting an entry clearance post to get a biometric ID card, getting Foreign Office clearance to study certain subjects - could make the UK a less attractive place in which to study.

"Our theory is that the totality of all this, if we are not very, very careful, could be as off-putting as post-9/11 in the US. But if the final discussions are right and the right effort is put into communications, there is no reason we can't have a simplified system."

The UKBA said the system will "create a more secure immigration route", and remained firm that the maximum length of a student visa will be four years.

A spokeswoman said: "We will keep the performance of sponsoring education providers under review during the first year of operation of the new system and if it is shown to be working well, with sponsors complying with our reporting requirements, then the maximum length of leave granted to students in one go may be extended."

Source: Sunday Herald

Release date: 8 Feb 2009