UK universities ask for $2.5bn bailout to compensate losses

British Universities are asking the government for a bailout worth almost $2.5B. The coronavirus pandemic means that the international student market is likely to collapse in the next academic year, leaving a hole in universities finances. Without government help, some institutions could face bankruptcy.

British universities rely heavily on money from overseas - critics would say too much. International student fees make up around a third of universities total income. Most international students are from China - a new study by the British Council found that only a quarter of Chinese students say they're still going ahead with plans to study abroad next year.

Several institutions are anticipating an 80-100 percent drop in foreign student numbers next year. For some universities that translates to more than $125M (£100M) in lost income.

British universities are set to miss out on money from international students due to coronavirus. AP

The lobby group Universities UK is calling on the government for a bailout, but so far the money hasn't been forthcoming. The government is in talks with the sector to try and limit the number of students who can be admitted at the start of the academic year in September. There are worries that the more prestigious universities could poach students from the lower ranking institutions.

The Director of Universities UK International Vivienne Stern says it's not just money that's needed. "Probably some of the most useful things the government can do is on the policy level," says Stern. "Making sure that we do everything we can, for example on the international front, to make it possible for students who want to apply for visas to come and study in the UK in the autumn to get through that process quickly and seamlessly even though the normal systems aren't in place."

With global travel likely to be disrupted until coronavirus vaccine is found - the prospect of studying abroad will be unappealing for many foreign students. The loss of their fees could be a potentially fatal blow to British universities - who will have to seriously rethink their business model.

(CGTN)