English universities will pay £925 a year for each international student they enrol, under UK government plans.
The levy is expected to take effect in August 2028.
The International Student Levy would affect students from countries such as Nigeria, India and China.
It is meant to fund maintenance grants for disadvantaged home students on undergraduate degrees.
According to UK Home Office statistics cited by PUNCH Online on Wednesday, the charge would apply to international students registered on eligible courses during an academic year.
The Home Office is the UK department in charge of immigration.
Universities could also pay the levy for continuing students, not only new ones.
The government first announced the levy in its 2025 Budget.
University leaders have opposed it, citing rising costs and falling overseas enrolment.
The levy would formally be paid by institutions, not students.
However, some universities could respond by reviewing tuition fees, recruitment or other spending.
Government Defends The Levy
The government restated its plans on October 19, 2026.
Education Minister Josh MacAlister told Parliament that the revenue would support England’s higher education and skills system.
He was answering a question on the policy’s economic justification.
MacAlister said the government had held consultations and published an impact assessment in 2025, with an updated analysis due soon.
He also said planned rises in domestic tuition fee caps could generate about £6 billion for providers over five years.
The levy’s projected cost to universities is under £1 billion over the same period, he said.
The government projects the levy could raise £445 million in 2028/29, £465 million in 2029/30 and £480 million in 2030/31.
However, the figures depend partly on assumptions about recruitment and enrolment.
The National Union of Students (NUS) and the Russell Group, which represents major research universities, have reportedly voiced concern about the effect on university finances and the sector.
Grants And Falling Applications
Under the plan, undergraduates from households earning up to £30,000 a year would get support throughout their studies.
The grants would be up to £1,000 a year in the first two years, then £750 a year.
Eligibility would focus on courses linked to the government’s industrial strategy, such as engineering and healthcare.
International student fees are a key income source for many UK universities, helping to fund teaching and research.
The levy comes as visa applications fall.
Reports say applications dropped by 22% over the past year and by more than 30% over three years.
Home Office statistics for the year to June 2026 reportedly showed China, India and Nigeria as the top three nationalities for sponsored study visas.
They accounted for about 54% of visas granted to main applicants.
Nigerian students could be affected if universities change fees or recruitment.
However, any pass-on of costs would depend on each institution.
Higher Funds Needed For Visas
Meanwhile, the UK has raised the living-cost funds international students must show for a study visa.
As reported by Nairametrics on Wednesday, the new rules apply from November 30, 2026.
Students in London must show £1,570 a month, up from £1,529.
For courses of nine months or longer, the maximum rises from £13,761 to £14,130, an increase of £369.
Outside London, the monthly figure rises from £1,171 to £1,203.
The nine-month maximum goes from £10,539 to £10,827, up £288.
These sums exclude tuition.
Applicants must also pay the visa fee and the Immigration Health Surcharge, which gives access to the National Health Service (NHS).
About 685,565 international students, 24% of the total, were in UK higher education in 2024/2025.
Of these, about 622,000 came from outside the European Union.
Prof. Padam Simkhada of the University of Chester said overseas students added about £41.9 billion to the UK economy in 2021/2022.
