Rising International Student Dropouts Spark Concern in Australia’s Education Sector

Australia is facing a sharp rise in the number of international students who leave university within the first 12 months after starting.

A new analysis using federal education data shows that:

  • The national first-year dropout (attrition) rate for international undergraduate students rose to 17.4% in 2023
  • This is a major increase from 9.7% in 2018
  • Around 14,873 international students left their university in just one year

This trend is now triggering political debate and government scrutiny.

📌 CQ University Records the Highest Dropout Rate

The most shocking figure comes from Central Queensland University (CQ University):

  • Dropout rate: 57.2%
  • Students leaving in first year: 616

That means more than half of international students who started there did not continue after the first year.

Other universities also showed high attrition:

  • Flinders University – 44.3%
  • La Trobe University – 33.5%
  • Southern Cross University – 37.6%

Meanwhile, top universities like:

  • Melbourne University – 3.6%
  • Monash University – 4.8%
  • UNSW – 4.1%

had much lower dropout rates.

This shows the issue is concentrated in certain institutions, not across all universities.

Why Are So Many Students Dropping Out?

Experts say there is no single reason, but three major factors are being discussed:

  1. 💰 Cost of Living and Housing Crisis

Many international students struggle after arriving due to:

  • High rent
  • Accommodation shortages
  • Rising living expenses
  • Need to work long hours

CQ University itself admitted retention has declined because students face:

  • Financial hardship
  • Employment pressures
  • Housing difficulties

Even genuine students may be forced to quit because studying becomes unaffordable.

  1. 🔄 “Course-Hopping” and Visa Misuse Concerns

A more controversial explanation is that some students may be using university enrolment mainly to:

  • Enter Australia on a student visa
  • Then leave the course early
  • Switch providers or move into vocational programs (VET)
  • Stay on bridging visas while working

A report suggests dropouts may indicate misuse of the visa system.

The article notes a huge increase in temporary migrants on bridging visas:

  • Mid-2025: 107,274 people
  • 2023: 13,034 people

Long visa processing times may allow people to remain in Australia and work while applications are reviewed.

  1. 🧑💼 Education Agents and Student Transfers

Another major issue is recruitment practices.

Some education agents earn commissions when students switch providers after arriving, creating incentives for:

  • Aggressive “poaching”
  • Students moving institutions quickly
  • Study becoming secondary to work or migration outcomes

To address this, Education Minister Jason Clare proposed reforms including:

  • Banning commissions paid for onshore student transfers

This rule is expected to take effect from 31 March 2026.

What CQ Universitys 57% Dropout Rate Really Means

The article also explains that dropout data does not always mean students are abandoning education completely.

Attrition means leaving that specific university. Students may:

  • Transfer to another university
  • Move into vocational education
  • Defer studies for personal reasons
  • Return home

So, the number does not prove fraud, but it highlights serious system weaknesses.

🎯 What the Australian Government Plans Next

Australia is now moving in two directions:

Stronger Integrity Controls

To prevent visa loopholes, course-hopping, and agent-driven churn:

  • Restrictions on transfers
  • Ban on commissions for onshore switching
  • More regulation of education providers

Better Student Support

To help genuine students stay enrolled:

  • Housing support
  • Financial assistance
  • Early intervention programs
  • Improved welfare services

🌍 Why This News Matters

Australia’s international education sector is one of the largest in the world and brings billions in revenue.

But rising first-year dropouts could lead to:

  • Reputational damage
  • Stricter visa rules
  • More scrutiny on universities
  • Harder conditions for genuine international students

The government now faces the challenge of tightening the system without harming legitimate students.

📞 Contact Us

For the latest international student visa updates, study abroad guidance, and trusted admission support, reach out to WAC Consultants today.

📞 DHA Phase 3 Branch: +92 310 7203666

📞 Garden Town Branch: +92 310 7205666

📞Gujrat Branch: +92 326 9616034

📩 Email: info@wacconsultants.com

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top