By Monika Kansal and Ritesh Chugh

It is generally accepted that the primary purpose of many international students choosing Australia as their study destination is the pathway to permanent residence (PR). Indeed it appears that Australia is selling permanent residence to international students, especially as more students are turning towards completing a Professional Year Program (PYP) and National Accreditation Authority for Translators and Interpreters (NAATI) test to gain five additional points towards their PR application. This article explores the estimated cost of permanent residence for international students. It also outlines the challenges that lie in their path towards permanent residence and professional careers.

International students need to secure designated minimum eligibility points for their permanent residence application. Often students fall short of the required eligibility points. One of the ways to gain additional eligibility points is to complete PYP and NAATI, which poses an extra financial burden on international students. Accreditation as a para-professional interpreter or translator (level 2) by NAATI gives an additional five points towards the application. Unfortunately, not many students see this test as an opportunity to improve their translation and interpreting ability for the future. Instead, it is perceived as a mere path to additional points. The NAATI application fee, online training and certification, and test fee total more than $1000. This does not include the private coaching for NAATI test preparation that many students undertake.

In addition, students are required to secure a job in their nominated occupation or closely related skilled occupation within two to four years of graduation to earn five points towards their PR application and to achieve the dream of working in their field. To add to these woes, the job market for international students is restricted.  Employers are not keen to offer employment due to possible conflicts with the post-study visa, inadequate communication skills, and a lack of Australian work experience.  Employers often disregard students’ home country work experience, preferring they provide local work experience.

International students pay almost three times the tuition fees than domestic students. For example, in a Bachelor of IT program, domestic students pay between $7000-$11000 per year. By contrast, international students pay between $26000-$33600, depending upon their choice of university.  Additional expenses include overseas student health cover, books, accommodation and other living costs.

Most Australian universities fail to embed formal work experience components into their degrees. Many years after graduation, international student graduates struggle to find employment in their own profession. On the other hand, domestic students become eligible for internships immediately after completing their degrees.  International students completing the same degree do not stand an equal chance. The visa requirements (permanent residency or citizenship) for Australian-based graduate programs make international students the least preferred candidates. More than triple the tuition fees and limited employment opportunities raises the argument of inequity with domestic students. Overall, the Australian government seems to be sidestepping its responsibilities in regard to providing equal employment opportunities for international students.

Internships opportunities are offered as a part of the PYP. International students have no choice but to turn to PYP to gain some local work experience (and, obviously, the additional points). International students with low bargaining power pay hefty fees, ranging from $6000-$10000 to complete the PYP.  In cases where fortunate students secure an internship through their personal networks, there is an opportunity cost in joining an unpaid internship in their relevant field while having to juggle preparation for PYP, NAATI and other requirements, such as the English language tests. This is a vicious circle! Classical chicken or egg race; students need PR or citizenship to get employment or internship opportunity in their field, and they need to show local work experience to get PR.

As well as the issues noted above, students need to appear for the International English Language Testing System (IELTS) test or Pearson Test of English (PTE) to apply for temporary or permanent residency. This has its inherent coaching and application costs. All of these factors lead to high levels of stress for international students. The high cost of living in Australia and adapting to a new culture has also been identified as causes of stress.  Students who have children with them have additional financial difficulties because of the high cost of childcare in Australia.  Research in the area indicates that these students face emotional stress, acculturation issues, lack of professional and social networks, financial burden, often leading to mental health issues.

There is mounting pressure on universities to improve student employability. Many students approach academics with a request to help with some employment or internship. Academics understand the plight of international students, though they are unable to assist with internship opportunities for every student. If the Australian education sector wishes to sustain access to these high growth international markets, it should work with local employers systematically, to create equal opportunities for international students. There is a pressing need for government agencies to address the intensifying issues of international student employability and migration, a nexus that cannot be broken. Considering the tuition fees in Australian universities, cost of living, the cost of NAATI and IELTS or PTE coaching and tests, PYP fees and the opportunity cost of an unpaid internship, the financial numbers around international student expenditure in Australia are mind-boggling.

Dr Monika Kansal is a senior lecturer in the School of Business & Law at CQUniversity. Dr Ritesh Chugh is a discipline leader in the School of Engineering and Technology at CQUniversity.