International students in Australia face more financial pressure as currencies weaken in parts of Asia

When Jolie Cao chose to do her undergraduate university degree in Australia, she knew it would be expensive.

So she saved up for her move to Melbourne in 2024, and now works two casual jobs while studying full-time at RMIT University.

Even though her parents in Vietnam help cover some of the costs, including paying tuition fees for her Bachelor of Design (Digital Media) degree, she has been facing growing cost-of-living pressures this year.

The weakening of the Vietnamese dong against the Australian dollar over the past five months — combined with rising inflation here — means she is looking to take on more shifts to make ends meet.

“With the currency exchange rate, it has become really hard recently,” said the 21-year-old.

“I need to work more here and balance my studies and try not to make it a stressful thing.”

The Vietnamese dong has declined 6 per cent against the Australian dollar since January, NAB’s head of FX Strategy, Ray Attrill said.

“You need 6 per cent more Vietnamese dong to buy the same amount of Australian dollars today than you did at the beginning of the year,” he said on Tuesday.

One semester’s tuition fee has increased from 404 million dong at the start of the year to 427.5 million dong.

However, the semester fee charged by RMIT has remained the same — the increase is the result of the weakening dong.

Weihong Liang, president of the International Students Representative Council of Australia (ISRC), said currency fluctuations had long impacted international students but recent movements in the exchange rate in some Asian countries had been “radical” for students and their families.

“Many international students rely on their families to earn the money in their motherland and then transfer that to Australia,” he said.

The currencies of countries including India and Nepal, which also account for large international student cohorts in Australia, have also weakened.

The Indian and Nepalese rupees are down about 12.5 per cent against the dollar compared to the beginning of the year, Mr Attrill said.

The Indonesian rupiah has declined by about 15 per cent during that same period, he said.

“[The rupiah] is one of the weakest currencies so far this year,” he said.

The Bangladeshi taka and the Philippine peso have also fallen.

Mr Attrill said a combination of factors had caused currencies to weaken over the past three to four months.

The main reason was huge increases in imported energy costs due to the Middle East war, he said.

“But then on top of that, we’ve also had the Australian dollar performing well in its own right in the last six months or so, for example it is up over 7 per cent against the US dollar in this period.”

Impact of financial stress

Akmal Ismail Zain, who is studying a Bachelor of Pharmaceutical Science at Monash University, says he is paying 1 to 2 million Indonesian rupiah ($72 to $158) more per month now compared to when he arrived in February.

“The inflation [in Australia] feels quite significant, even though it’s only been a few months,” he said.

Mr Zain’s parents in Jakarta have been paying for his living expenses and tuition fees, but he is now looking for a part-time job to “reduce their burden”.

His parents have also warned him to be careful with money.

Ly Tran, an education professor at Deakin University with expertise in international education, said financial stress can have significant consequences on international students’ academic performance, wellbeing and sense of belonging in Australia.

“When students face increased financial pressure, they may need to reduce spending on essentials, move into overcrowded or substandard accommodation or increase their paid work hours at the expense of study and social engagement.

“Over time, this can affect both their educational outcomes and their overall experience in Australia.”

Universities Australia chief executive officer Luke Sheehy acknowledged the uncertain global economy was “creating challenges for many international students” and for some students this was “compounded” by exchange rates.

“Universities are conscious of these challenges and provide a range of support services, including financial hardship assistance, wellbeing support and other practical help for students experiencing difficulty,” he said.

“Any student who is struggling should reach out to their university as early as possible to access the support available.”

Exchange rates only one factor

With no immediate end to the Middle East war in sight, experts have voiced concerns about long-term impacts on the university sector and financial pressures on international students.

If currencies continue to weaken, it could influence students’ decisions about whether Australia was an affordable study destination, Professor Tran said.

“However, exchange rates are only one factor,” she added.

“Currently, other factors are likely having a greater impact on student demand, including higher visa refusal rates, tighter migration policy and broader policy uncertainty surrounding international education.”

Chinese students remain the largest international student cohort in Australia, and they continue to provide the lion’s share of revenue for Australian universities.

The Chinese yuan also weakened 2.5 per cent against the Australian dollar since January, according to Mr Attrill.

In February, Department of Home Affairs data confirmed forecasts that Chinese student numbers to Australia have been declining.

Mr Liang, the ISRC president and an international student from China, said all international students were now looking both at the affordability of the Australian university degrees, but also the degrees’ value.

“Why [do] we pay lots of money but not really get a [good] experience here.”

He said more students were now looking to universities in Malaysia or Hong Kong for postgraduate study.

“Some people … [may decide an] undergraduate is enough.”