Australia has surpassed 700,000 overseas students for the first time, while over 50,000 visa applications were rejected in the last three months.

Both numbers are record highs, with government data for February highlighting a surge in student visa numbers to 713,000, while visa approval rates dipped to 82.8 per cent. 

Experts caution against hasty governmental measures to curtail student numbers, fearing damage to Australia's reputation as a study destination.

The international education sector, Australia's fourth-largest export, valued at around $50 billion in 2023, now faces possible government interventions, such as higher application fees or caps on student numbers, aimed at reducing intake.

As visa applications decline, reflecting the stricter policy environment, students are reconsidering their destination countries. 

A recent survey revealed that 22 per cent of prospective international students have shifted their preferences away from traditional hubs like Canada, the UK, and Australia, towards alternatives like New Zealand, Germany, and the US. 

Factors influencing these decisions include policy changes, course costs, visa processing times, and better job opportunities elsewhere.