The Academy of Interactive Entertainment has raised alarms over significant financial losses and operational damages, noting that only 2 out of a potential 248 international students were allowed to enroll.

Federal Education Minister Jason Clare highlighted that the rapid increase in international students has led to a rise in unscrupulous education providers looking to exploit the system.

Australia's international education sector, valued at $48 billion, plays a crucial role in the economy, supporting approximately 250,000 jobs and generating significant revenue through international student fees, which are three times higher than those for domestic students.

Colleges, particularly in the aviation and interactive entertainment sectors, are voicing strong opposition to these caps, arguing that they will severely impact their financial viability and operational capabilities.

David Newton, CEO of Basair Aviation College, described the situation as catastrophic, predicting a dramatic drop in international student enrollment from 224 to just 2.

In response to concerns about the quality of education and the influx of untrustworthy providers, new laws will be implemented in 2025, capping the number of overseas students at 270,000.