Australia's students cut meals and drop out as cost-of-living crisis deepens
Students in Australia are facing severe financial strain, with many struggling to afford basic needs. A new survey reveals that rising living costs have forced drastic changes in spending, diet, and even education plans. The situation has worsened since last year's visa fee hike, pushing more international students to abandon their studies. Accommodation remains the biggest financial shock, with 77% of students reporting higher-than-expected housing costs. Many are cutting back on essentials, with 70% reducing everyday spending and 81% avoiding fruit and vegetables to save money. As a result, 62% admit they no longer maintain a balanced diet, while 75% rely on cheaper takeaway meals.
The financial pressure is taking a toll on mental and physical health. Living costs are now the top stressor for 61% of students, and 12% are managing chronic medical conditions. Worryingly, 27% have considered leaving their courses entirely due to the financial burden.
International students face even greater challenges. Since the AUD 2,000 visa fee increase in July 2023, dropout rates have climbed by 15-20% compared to 2021-2022. Official figures show 28,000 international students withdrew in 2024, up from 22,000 in 2022. Visa restrictions and financial hardship are cited as the main reasons.
Despite the struggles, a small group is managing better. Data shows that 49% of students with high wellbeing still maintain a balanced diet, highlighting the link between financial stability and health. The cost-of-living crisis is reshaping student life in Australia, forcing many to compromise on food, housing, and education. With dropout rates rising and health concerns growing, the long-term impact on students—both local and international—remains uncertain. Global factors, like the Middle East conflict, could further strain food prices and deepen the financial squeeze.
