Australian police have issued a warning after a spate of ‘virtual kidnapping’ scams targeting Chinese students. 

New South Wales police urged vigilance following a rise in “suspicious” phone calls attempting to scam foreign students by telling them they have been implicated in a crime and must pay money to avoid deportation or arrest. 

Police said that targets are initially contacted via phone calls in which the perpetrators commonly speak Mandarin and pretend to be from a Chinese authority, such as an embassy, consulate or police. 

Scammers then continue communication with victims through encrypted platforms like WhatsApp and WeChat, before coercing them into transferring large sums of money into offshore bank accounts. 

Victims are also made to fake their own kidnappings, blackmailed into to taking hoax pictures to be sent to family members who are told to pay ransom money to guarantee the victims’ ‘safe release’.

In one incident, the family of a 23-year-old woman paid AUS $270,000 to a scammer before the victim was located by police in a Sydney hotel at the beginning of May. 

Similar fraud has occurred in other countries, including in Northern Ireland where two international students were scammed out of £105,000 last year by criminals posing as Chinese officials. 

“It is disgraceful there are scammers out there are preying on international students”

Australian police said they are working with universities and the Chinese embassy to warn the community about these scams. 

“The community should note that anyone calling them on their mobile and claiming to be from a Chinese authority, such as police, prosecutor, or the courts, and then demanding money be transferred is a scammer,” said robbery and serious crime squad commander, detective superintendent Joe Doueihi.

“It is disgraceful there are scammers out there are preying on international students who have come to Australia to study; most of whom are living in a new country and far away from loved ones for the first time in their lives,” he said. 

“We understand that victims of virtual kidnappings may be traumatised or embarrassed following the incident – we want them to know there is no shame in coming forward to NSW Police for assistance.”

The post Aus: ‘Kidnapping’ scam targets Chinese students appeared first on The PIE News.

A landmark report by various stakeholders in the UK has revealed that international students boosted the country’s economy by £41.9bn in the academic year 2021/22.

The benefits and costs of international higher education students to the UK economy, compiled by Universities UK International, HEPI and Kaplan International Pathways, showed that the corresponding cost of the students to taxpayers was just £4.4bn.

The figure has risen from £31.3bn in the 2018/19 academic year.

The net economic impact of each student is around £98,000, according to the report.

The document comes as more speculation mounts over possible limits on dependants being discussed by the UK government before migration figures are released in late May.

“[International students] offer both a cultural and social benefit to our country, and make a significant contribution to our economy,” said Jamie Arrowsmith, chief executive of UUKi.

“We should be proud that our universities continue to attract students from all over the world. It is vital that the UK remains an open and welcoming destination for international students, and that their contribution is recognised and valued,” he continued.

The total benefits versus costs, according to the report, imply a “benefit-to-cost” ratio of 9.4.

“International students put nearly 10 times more into the economy than they take out – boosting both local and national economic wellbeing,” noted Gavan Conlon, partner at London Economics, which conducted the research.

Examining the cost of hosting international students shows that there has been an increase of over £1bn since 2018/19.

The report says this is largely due to the need to provide public services for both students and dependants, a cost which has also increased per head due to general prices going up, and an increase in the non-EU cohorts.

While EU students are still flocking to UK shores for study, non-EU students provide the overwhelming majority of net impact on the economy – with £33.5bn being generated by non-EU students.

The report mentions Brexit’s “dramatic” impact on the sector, with EU students, who used to make up one-in-four international students in the UK, now only making up one-in-12.

Per non-EU student, the net impact shown in the report was £96,000.

According to the data, this means every 11 non-EU students generate £1m of net impact on the UK economy throughout their study period.

EU students were even higher, with the net impact of each one being around £125,000, meaning every 9 EU students generate the same £1m of net impact during their studies.

“International students put nearly 10 times more into the economy than they take out”

Crucially, the report pointed out that there was a benefit of £58m per parliamentary constituency  – amounting to roughly £560 per citizen of the UK.

Broken down by constituency, Glasgow Central’s international students provided the most net impact per resident at £292m, followed closely by London’s Holborn and St Pancras constituency at £291m.

“This important report makes clear the vital contribution international students make to Scottish society and to our economy,” said Andrea Nolan, convener of Universities Scotland’s International Committee and principal of Edinburgh Napier University.

“The striking element of the report is the findings demonstrating the benefits international students generate across the whole of Scotland,” she added.

Edinburgh East and Aberdeen North were also featured in the top ten constituencies by net impact, with students contributing £268m and £241m respectively.

Also in the top ten were Nottingham South with £271, Sheffield Central with £273m, and Newcastle Upon Tyne East with £264m.

The average net impact in London overall was £131m.

With the report highlighting the highest contribution made by international students ever to the UK economy, stakeholders were firm in their view that any changes to rules on topics like dependants and post-study work would be felt heavily.

“It is vital that [any changes] are based on evidence rather than whim, so this report is designed to strengthen the existing evidence base,” said Nick Hillman, director of HEPI.

“We hope it will be read by every candidate for every major political party in every constituency in the run up to the next election,” he urged.

Linda Cowan, managing director of Kaplan International Pathways, also warned that the success shown in the report is something stakeholders “cannot take for granted”.

“It is vital that [any changes] are based on evidence rather than whim”

She also pointed out that, in the midst of possible changes to the post-study work visa, international students know what they want and “employability skills and careers advice are at the top of their list”.

“We need better data on the employment outcomes of international students, consistent policy, a strong offer, and a unified message of welcome,” Cowan added.

Tim Bradshaw, chief executive of the Russell Group, urged the UK government to “work with the sector to ensure the UK remains an attractive destination for those studying around the world, including making sure the graduate route is internationally competitive and helping to promote it in a diverse range of markets.”

“Higher education is one of the UK’s most important and successful exports – but it is truly unique, in that alongside generating a significant economic contribution to the UK our universities have a hugely positive global impact, creating opportunity for millions of learners and helping address some of the most pressing global challenges,” Arrowsmith added.

The report was launched on May 16 at an event in London.

The post UK international student contribution soars to £42bn appeared first on The PIE News.

A landmark report by various stakeholders in the UK has revealed that international students boosted the country’s economy by £41.9bn in the academic year 2021/22.

The benefits and costs of international higher education students to the UK economy, compiled by Universities UK International, HEPI and Kaplan International Pathways, showed that the corresponding cost of the students to taxpayers was just £4.4bn.

The figure has risen from £31.3bn in the 2018/19 academic year.

The net economic impact of each student is around £98,000, according to the report.

The document comes as more speculation mounts over possible limits on dependants being discussed by the UK government before migration figures are released in late May.

“[International students] offer both a cultural and social benefit to our country, and make a significant contribution to our economy,” said Jamie Arrowsmith, chief executive of UUKi.

“We should be proud that our universities continue to attract students from all over the world. It is vital that the UK remains an open and welcoming destination for international students, and that their contribution is recognised and valued,” he continued.

The total benefits versus costs, according to the report, imply a “benefit-to-cost” ratio of 9.4.

“International students put nearly 10 times more into the economy than they take out – boosting both local and national economic wellbeing,” noted Gavan Conlon, partner at London Economics, which conducted the research.

Examining the cost of hosting international students shows that there has been an increase of over £1bn since 2018/19.

The report says this is largely due to the need to provide public services for both students and dependants, a cost which has also increased per head due to general prices going up, and an increase in the non-EU cohorts.

While EU students are still flocking to UK shores for study, non-EU students provide the overwhelming majority of net impact on the economy – with £33.5bn being generated by non-EU students.

The report mentions Brexit’s “dramatic” impact on the sector, with EU students, who used to make up one-in-four international students in the UK, now only making up one-in-12.

Per non-EU student, the net impact shown in the report was £96,000.

According to the data, this means every 11 non-EU students generate £1m of net impact on the UK economy throughout their study period.

EU students were even higher, with the net impact of each one being around £125,000, meaning every 9 EU students generate the same £1m of net impact during their studies.

“International students put nearly 10 times more into the economy than they take out”

Crucially, the report pointed out that there was a benefit of £58m per parliamentary constituency  – amounting to roughly £560 per citizen of the UK.

Broken down by constituency, Glasgow Central’s international students provided the most net impact per resident at £292m, followed closely by London’s Holborn and St Pancras constituency at £291m.

“This important report makes clear the vital contribution international students make to Scottish society and to our economy,” said Andrea Nolan, convener of Universities Scotland’s International Committee and principal of Edinburgh Napier University.

“The striking element of the report is the findings demonstrating the benefits international students generate across the whole of Scotland,” she added.

Edinburgh East and Aberdeen North were also featured in the top ten constituencies by net impact, with students contributing £268m and £241m respectively.

Also in the top ten were Nottingham South with £271, Sheffield Central with £273m, and Newcastle Upon Tyne East with £264m.

The average net impact in London overall was £131m.

With the report highlighting the highest contribution made by international students ever to the UK economy, stakeholders were firm in their view that any changes to rules on topics like dependants and post-study work would be felt heavily.

“It is vital that [any changes] are based on evidence rather than whim, so this report is designed to strengthen the existing evidence base,” said Nick Hillman, director of HEPI.

“We hope it will be read by every candidate for every major political party in every constituency in the run up to the next election,” he urged.

Linda Cowan, managing director of Kaplan International Pathways, also warned that the success shown in the report is something stakeholders “cannot take for granted”.

“It is vital that [any changes] are based on evidence rather than whim”

She also pointed out that, in the midst of possible changes to the post-study work visa, international students know what they want and “employability skills and careers advice are at the top of their list”.

“We need better data on the employment outcomes of international students, consistent policy, a strong offer, and a unified message of welcome,” Cowan added.

“Higher education is one of the UK’s most important and successful exports – but it is truly unique, in that alongside generating a significant economic contribution to the UK our universities have a hugely positive global impact, creating opportunity for millions of learners and helping address some of the most pressing global challenges,” Arrowsmith added.

The report was launched on May 16 at an event in London.

The post UK international student contribution soars to £41bn appeared first on The PIE News.

One of India’s most prestigious institutions, the Indian Institute of Technology Madras, will open a campus on the island of Zanzibar in Tanzania later this year as the country moves to embrace transnational education.

The campus will be opened in the Indian ocean island in October this year and will open with 70 students including 50 undergraduates and 20 master’s degree students.

The branch, the very first campus abroad and African campus from state owned IIT Madras, will initially offer programs in data science and artificial intelligence before adding others in the coming years, according to Tanzania media reports.

However, details of possible tuition fees for the courses have not yet been made public.

Soon after the African branch opens, it is slated to be followed by a few others in Abu Dhabi, the UAE and Kuala Lumpur in Malaysia.

“Zanzibar’s historical significance as a trade hub or its current attempt to reposition itself as an international business centre may have influenced the decision,” Tanzanian columnist and technology consultant Charles Makakala said.

“In any case, I don’t see why it wouldn’t work: Zanzibar offers both the tranquillity of a relatively small town, allowing students to maintain focus on their studies, and access to the rich Swahili culture, which would enrich their experiences.”

“I don’t see why it wouldn’t work”

Earlier on, IIT Madras director V Kamakoti had confirmed that in February, a team of five professors from the institution had visited Tanzania and held discussions with Tanzanian officials on final plans for starting the campus.

The news comes in the wake of reports that India was targeting Africa as one of the places where it planned to open branches for some of its universities in its bid for more international students.

Africa was also part of the country’s larger plans for using TNE as part of its internationalisation strategy.

It also comes hot on the heels of another Indian institution, the National Forensic Sciences University setting up India’s first ever foreign campus in Uganda last month, in response to what it said is high demand for forensic science programs from African students.

The post IIT Madras to open first campus in East Africa appeared first on The PIE News.

The latest figures from English UK show optimism for the country’s ELT sector, as MPs responded to the sector’s bid for government help to regain its premier position.

For English UK members, the year 2022 saw a doubling of student weeks and a three-fold rise in numbers, according to association’s annual Student Statistics report.

Data from the 308 centres reporting in both 2019 and 2022, compiled by BONARD, outlines that the sector has now recovered 60% of its 2019 student week volume and 51% of its student numbers.

Notably, the data shows that the recovery rate was uneven, with just 13% of providers exceeding their 2019 student weeks.

Stephen Hammond, MP for Wimbledon, called it a “worrying and disappointing” prospect that the sector’s premier position is “under threat”, and in some cases “lost”, during the 2023 English UK Members’ Conference.

Hammond said he believes some of the asks are “more achievable than others, but a number of them are achievable”.

“I hope that on a cross-party basis, I and my colleagues who are here today will work with you to achieve that,” he added.

In 2022, English UK’s 329 member centres taught 225,641 full-time English language students, for a combined total of 973,716 student weeks.

Some 93 English UK member centres taught part-time English language courses to an additional 11,913 students. 

Growth was driven mainly by the private sector, according to the report.

“These are the figures we’ve been awaiting, answering the crucial question about how the UK is recovering from the pandemic despite immigration changes making it harder for our biggest markets to travel here,” said Jodie Gray, chief executive of English UK.

“Our quarterly statistics had already told us the story is positive overall and that our members’ hard work is largely paying off.

“But there are pockets of excellent and worrying news and the loss of ID card travel means it’s hard to see when and whether our major EU markets can fully recover,” added Gray.

The absolute overall year-on-year growth in student weeks was driven mainly by the fastest growing source markets: Argentina (+1329%), Brazil (+567%), Italy (+502%) and Ukraine (+413%).

Panel discussion of our student stats – Brazilian and other Latin American students coming for shorter courses than in our competitor countries due to lack of work rights, members agree #UKELT #eukconference pic.twitter.com/Y3oOrWlgz3

— English UK (@englishuk) May 12, 2023

“Brazil played a significant part of the recovery for many of us in 2022 and we are seeing it again in 2023, as has Argentina. Both markets for us have not just exceeded 2019 but continued to exceed 2022” said Lisa James, managing director, EC Young Learners.

China and Russia, traditionally key markets for UK ELT, sent fewer student weeks (-25% and -20%, respectively). 

“Our members’ hard work is largely paying off”

However, James suggested there are signs of a later-than-expected recovery from China, noting that EC Young Learners will only receive its first summer school students from China in the summer of 2023.

“China is going to play a big part for young learner market, as are other areas in Asia as well” predicted James.

Meanwhile, for state sector members, China remained the top source market with 38% of student weeks, despite a drop of 36%. The next biggest markets were Saudi Arabia (9%), Romania (8%), Japan (5%) and Kuwait (4%).  

“The uneven recovery and market developments in China and Russia have clear implications for student recruitment strategy-building,” said Patrik Pavlacic, chief intelligence officer of BONARD.

“In this context, it is prudent for the sector to combine a focus on source markets that are experiencing a swift recovery and those which might not be rebounding as fast, but offer long-term potential for the UK ELT sector,” continued Pavlacic.

“The continued coordination of stakeholders, which include the government, and their targeted marketing efforts in prospective target markets will be crucial in the coming year, and if such coordination is achieved, we firmly believe that the ELT sector will be able to speed up its recovery,” he added.

In a statement, English UK described the sector’s overall recovery as “patchy”, noting that even in the private sector where it is concentrated, the UK lags behind key competitors.

A sixth of private providers exceeded their 2019 volumes but a third achieved under half, according to the report. State sector providers taught a third fewer student weeks than in 2021, and 22% fewer students.

For the first time since the start of the pandemic, juniors returned in volume, making up 49% of all students, compared to 9% in 2021. The comeback was particularly dramatic for the private sector, with 190 private sector centres running junior ELT programmes.

It seems lobbying efforts from English UK members are paying off as some eight MP’s attended English UK’s parliamentary reception on May 12, launching the association’s positioning paper which includes nine asks of government.

The Earl of Minto was also in attendance to show his support for the sector and said that, along with his team, he “looks forward to digesting” the recommendations made by English UK.

“We want to help you bounce back”

“We understand that the pandemic threw up huge challenges for the sector – but as ever, you responded with resourcefulness and resilience to help students keep learning,” the Earl of Minto addressed stakeholders.

“We want to help you bounce back and make sure even more of the one and a half million students that study English abroad every year do so in the UK.

“Not only do your centres help English maintain its status as the world’s leading language, they give people who go on to become influential in their own nations a lifelong affinity with ours, encouraging their return as students, tourists and entrepreneurs,” he added.

The post UK ELT recovery is optimistic but uneven, new data shows appeared first on The PIE News.

International student numbers have continued to increase in New Zealand since borders reopened in July 2022, but student visa rates are still lagging behind pre-pandemic levels. 

Visa approvals for applicants to New Zealand’s universities exceeded pre-pandemic levels at the beginning of 2023, but other sectors remain lower than in 2019, according to new data. 

The head of Education New Zealand has described the country’s recovery since borders reopened as “variable at best”.

“Even within the university sector, that on the face of it looks to have recovered better than others, the experience is mixed,” said Grant McPherson, the organisation’s CEO, in a statement. “Within the [Private Training Establishments] and English language schools we have a long way to go to reach the levels of 2019 and early 2020. 

“In such a highly competitive market, it is going to take some time to regain awareness with learners and overcome the head start other countries gained,” she added.

“We have a long way to go to reach the levels of 2019”

At the beginning of March 2023 there were nearly 34,000 international student visa holders in the country, compared to 125,000 in 2018. 

The most common student nationalities were Chinese, Indian, South Korean and Japanese. 

While Chinese students make up a greater proportion of visa approvals than they did pre-pandemic, the proportion of Indian student visa holders has decreased.

Data shared from the Study with New Zealand website suggests that interest in the country is growing as web traffic continues to increase, in part thanks to online campaigns by Education New Zealand. 

In February, the top website user nationality was Indian, followed by Vietnamese, Brazilian, Thai and Japanese. 

McPherson said that “tight” budgets would be a challenge to New Zealand’s recovery. “We need to focus our limited resources to where they have the greatest impact, and we need to be aligned as one with the sector,” he said, identifying India as a market “worthy of focus”. 

The post “Mixed” recovery for New Zealand institutions appeared first on The PIE News.

The British Council in Pakistan has temporarily closed its exam centres, asking candidates to follow social media channels for updates.

It comes after the country has seen unrest in the past week, as former prime minister Imran Khan was arrested on May 9, then subsequently released after the country’s supreme court ruled his detention was illegal.

The exams cancelled include British Council, Pearson, University of London and Cambridge International. IELTS exams were cancelled on May 10 and 11, but no specific mention of them was made by British Council as of May 12.

The British Council tweeted that due to the “ongoing situation” in Pakistan they would be cancelling “all exams”.

It is the third day in a row that the exam centres have been closed.

Due to the ongoing situation in the country, we have cancelled all Cambridge International, Pearson & University of London exams scheduled across Pakistan on Friday 12 May.

We are communicating with affected candidates via schools and with private candidates directly. pic.twitter.com/mUgpQDthxQ

— British Council Pakistan (@pkBritish) May 11, 2023

The tweet states that communication with “affected candidates” is also ongoing, but some replies to the tweet show that for some candidates this hasn’t been the case – one reply said “you could have said the same thing a few hours ago”.

A student wrote underneath the tweet, “And hence, all my hardwork [sic] went down the drain. CAIE should grant the grades of potential students after surveying their progress from colleges.”

In response to The PIE’s request for comment, Cambridge International said the “difficult decision of cancelling” exams was taken after discussions with partners and the British Council.

Khan’s arrest and the subsequent back-walking by the court has caused his supporters to flood the streets of Islamabad and other cities – some protests, according to reports, have become violent.

“We have a clear duty of care towards our students, partners and staff to prioritise their safety,” Cambridge International’s spokesperson said.

According to Aljazeera, nearly a dozen people have been killed.

Despite the order for his arrest on May 9 and subsequent release just two days later, Khan was ordered to stay at the police building overnight “for his own safety”, but was allowed to bring 10 people to stay with him in the facilities.

Despite the ruling that his arrest was illegal, the protests are ongoing. He was originally arrested while appearing in front of the country’s high court on corruption charges.

Earlier in the week, British Council Pakistan had to dispel confusion among candidates after local channels reported that the exams originally scheduled for May 10 would be rescheduled on May 11 and 12.

Attention Candidates!

Some headlines on local news channels have reported that exams scheduled for 10 May have been rescheduled to 11 and 12 May. This news is incorrect. pic.twitter.com/Szp2n0r6Mt

— British Council Pakistan (@pkBritish) May 10, 2023

“Although the exams scheduled on 10,11 and 12 May were cancelled, Cambridge has a well-established ‘special consideration’ process to issue results when some exams are cancelled. We are working to agree the next steps and will communicate detailed information to our schools as soon as possible.

“We are actively monitoring the situation with our partners and are sharing information with schools as quickly as we can,” a spokesperson told The PIE News.

The PIE has also contacted British Council Pakistan and Pearson for comment.

The post BC Pakistan cancels exams amid unrest appeared first on The PIE News.

A tutoring sub-brand that originally operated exclusively under Edukasyon.ph in the Philippines has announced it will be separated from the agency amid its international expansion.

Edge Tutor International, which has grown into 20 countries across the Americas, Europe and other parts of Asia, will run under its own name as a separate entity to its former parent company.

The tutoring company has reported a 50% quarter-on-quarter growth, leading to the decision to break away from Edukasyon.ph – and former CEO of the parent company, Henry Motte-Muñoz, will take the title at Edge Tutor.

“The whole business is built around Filipino teachers – the ones that we select are highly skilled, and speak English with neutral accents. We see them as our strength,” Motte-Muñoz told The PIE News.

He explained that while they are separating from Edukasyon.ph as an entity, the agency’s ecosystem will still be accessible to them due to the company still being a part-shareholder.

“We can then build our own ecosystem – not just the eight million students a year, but dozens of university partners and corporations – and we also work with all the government bodies in the Philippines,” he noted.

Edge Tutor began as an English and Maths tutorial service for K-12 learners in the Philippines, but “growing international demand” called for its provisions to expand to clients worldwide.

It also now will provide teacher support to other tutoring businesses across the globe as part of its new system.

The company provides both a stringent interview process and training upon joining, Motte-Muñoz said.

“It’s very easy to recruit teachers. There’s a million licensed teachers; so finding teachers – and good teachers – is very hard, so we only accept 3% of teacher applicants,” he explained.

Once they are in, however, he said everyone’s job is to “retain the teachers”.

“We think of it as a teacher community – we do offline events for socialising, as one example.

“The whole business is built around Filipino teachers”

“We’re also the only private education company in the country that offers private health care. If you’re in the Philippines, you don’t usually get private health care,” he claimed.

The spin-off of Edge Tutor International was lauded by Edukasyon.ph’s current CEO, Grace David, who noted she is “confident” that it will “continue to grow and provide high-quality tutoring services to learners around the world”.

The system has been in a beta-stage for six months and has already trained a thousand teachers, according to Muñoz – these include both full and part-time teachers.

While the services are already offered in various continents, the organisation said more plans to expand will be announced in the coming months.

The post Edukasyon.ph tutoring brand goes independent appeared first on The PIE News.

The World Council on Intercultural and Global Competence held its semi-annual meetup online on May 9 to discuss how societies can come together to embrace a shared humanity.

In her welcome address, founding president, Darla Deardorff posed several questions to attendees around this theme.

“In this post-pandemic time, when societies have become even more polarised, as we’re seeing all around the world, the burning question for me is, ‘What is necessary for us to all get along together?’” she said.

“Given all that faces us,” she said, “the human connection is so important in today’s world, particularly with the divisiveness we are confronting.”

Deardorff said she is increasingly focused on research on cultural intelligence through a lens of social emotional learning, empathy and compassion.

“What if we meet ourselves through the lens of ‘we’ instead of ‘us versus them’? What if we viewed ourselves through the lens of neighbour, both local and global? And what does it really take to get along together as neighbours to each other?”

She suggested that these lenses may help shift the thinking about global and intercultural competence from abstract to concrete. 

Veronica Boix-Mansilla, senior principal investigator at Project Zero at the Harvard Graduate School of Education, shared a personal story about growing up in Brazil and the “transformational experience” of teaching English to children.

“What if we meet ourselves through the lens of ‘we’ instead of ‘us versus them’?”

“Children were encouraged to learn English so they could tell the story of Brazil, of the culture, of the Amazon and of the contribution it could make to the world,” she said.

“It also positioned the children as the people having a seat at the table in the global conversation. And for me this flips the conversation about global competence in a very important way.”

Boix-Mansilla proffered one needs to have both a cognitive and an emotional understanding of the world to “not only know something about the world, but to be standing in the world in a new and different way”.

The next gatherings of the World Council will be in-person at NAFSA in Washington DC and online at the Global Forum on May 24-25, which will feature an opening keynote from Gert Jan Hofstede, plenary panels, a research forum, an interactive workshop on global inclusion, a special presentation from UNESCO, and networking opportunities.

Reflecting on the latest event with The PIE, Deardorff circled back to the central theme of the conversation about connections.

“The incredible interest and participation from colleagues from all around the world demonstrated not only the enduring interest in and critical need for intercultural and global competence, but also demonstrated the desire for meaningful human connection, which is more important now than ever.”

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This week investment bank Goldman Sachs announced a partnership with US-based fintech provider MPOWER Financing to open up a new US$150 million financing facility for educational loans.

The partnership is part of a growing investment portfolio from Goldman Sachs in education products, which already includes Prodigy Finance, which raised over US$2.1 billion in seven rounds of investment from funds like the Canada Pension Plan.

Growing venture capital investment in fintech and lending in the education sector is attracting a wide range of new and existing players into the market, looking to diversify their income streams.

Martin Baseri, one of the founding partners of ApplyBoard, recently attended the ASU-GSV conference promoting the imminent launch of a new loan-comparison platform called Passage, expected to come online later this year and attract investors.

“Four in five students [in India] actually ask for extra funds”

Increased outbound student mobility, especially from India to the major anglophone destinations has been fuelled by improved access to loans to pay for tuition fees and expenses.

The provision of globally secure student loans is being seen as the way to open up the potential from markets linked to rapid population and socio-economic growth in the next 25 years, including Indonesia and Nigeria.

Sasidhar Sista, co-founder of GradRight, which is part of the growing breed of ed-financing companies in India that combine application counselling with financial products, spoke to The PIE about the growing demand.

“Four in five students [in India] actually ask for extra funds,” Sista explained.

“There’s a huge pressure on scholarships and loans and [in the meantime] the tuition fees are increasing. There is an immense pressure on finding loans for bright students.”

GradRight has witnessed ‘significant growth’ across the student finance sector even as new players ‘jump in’, speculating a 35% compound annual growth rate of disbursements of funds for student loans, to the tune of $1 billion.

Financial loans offered by GradRight are backed by financial institutions such as Yes Bank, IDFC First Bank and ICICI Bank in India and are open to eligible applicants seeking to study abroad.

In the first quarter of 2022 the number of Indian students applying for education loans through Prodigy Finance grew by 98%, the company said last year.

Loans can take up to 30 days to be approved and require the involvement of family and often collateral.

Despite the proliferation of loan products and growing choice for students from India, Sista was quick to point out the narrow terms of financial products for students relating to their graduate earnings.

“There is literally a lack of innovation in financial products for students and different programs have different kinds of outcomes in their careers,” he said.

“There is literally a lack of innovation in financial products for student”

“We are still working within the loan segment but I think there is an ample opportunity to bring in income sharing agreements and a lot of different formats of funding schemes.”

Just this week, US president Joe Biden, extended measures to erase $42bn in student debt for people who had completed 10 years career service in the public sector, in recognition that student loan systems require flexibility on repayments relating to graduate career outcomes and earnings.

Leap Finance, which had generated $150m in funding from venture capital funds such as Owl Ventures by 2022, classifies itself as a neo-bank, an online-only provider of student loans that allows them to reflect favourable interest rates seen in other parts of the world, for Indian students.

Other competitors in the Indian market include Leverage which also works with institutions such as State Bank of India, Canara Bank, Syndicate Bank, InCred and Allahabad to provide loans. KC Overseas has invested in a fintech division called ÉLAN Loans, while UniAcco tied up with the largest institutional lender in India for student loans in 2020.

In Africa, 8B Education Investments recently announced plans to provide up to $30m in loans to help African students access higher education abroad.

The partnership between MPOWER Financing and Goldman Sachs is part of a wide portfolio of investors in the company totalling $500m, that also includes ETS Strategic Capital, the investment division of the leading educational research, assessment and learning company.

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