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The landscape of higher education has undergone profound shifts over the past five years. The characteristics, expectations, and financial realities of students in 2018 differ significantly from those of today’s university cohort. Societal, economic, and technological transformations have reshaped Generation Z’s approach to education, employment, and financial decision-making. Notably, 61% of Australian universities report that their Learning Abroad staff have held their roles for over a decade, prompting an important question: How well do we understand today’s students, and have long-held assumptions become outdated? One key insight challenging traditional perspectives is that on average only 17% of students in most universities are from a low socioeconomic background (Innovative Research Universities 2023), a considerable portion of students belonging to middle-to-higher socioeconomic brackets (83%), suggesting that financial constraints may not be the primary barrier to participation in Learning Abroad programs.

Rethinking Financial Barriers in Learning Abroad

The stereotype of students struggling to afford basic necessities is not as universally applicable as it once was. While the rising cost of living remains a challenge for some, data indicates that many students have access to greater financial resources than commonly assumed. However, universities continue to report a decline in participation in traditional semester exchange programs. The most frequently cited barriers are the increasing cost of living and the growing demands on students’ time (2024 Learning Abroad Survey, Q8 and Q33). If financial support is available, why aren’t students engaging in Learning Abroad programs at higher rates? The answer lies in shifting financial priorities, spending behaviours, and how students perceive the value of these experiences.

Generation Z: A Workforce-Integrated Student Cohort

Insights from McCrindle Research indicate that Generation Z now comprises 27% of the Australian workforce. Furthermore, government data reveals that 80% of students work while studying, with many balancing part-time or full-time employment. Given this, the more pressing question is not whether students can afford Learning Abroad programs but whether they have the time to participate. Findings from the 2024 Learning Abroad Survey (Q8) reinforce this perspective, with universities reporting that short-term programs and study tours are increasingly favoured over semester exchanges and internships due to their lower time commitment.

Financial Priorities and Spending Behaviours

A 2021 study by leading Gen Z marketing agency Pion! found that 48% of Australian students earn income through employment, while 23% receive financial support from family. With multiple income streams, students often possess discretionary spending power. However, their financial priorities reveal a strong preference for non-essential expenditures—53% of student spending falls into this category (Pion!). This suggests that while many students have the means to engage in Learning Abroad programs, they may not prioritise these experiences within their budget. Additionally, McCrindle Research highlights that Gen Z is more likely than previous generations to invest in ethically aligned products and experiences. Given that travel ranks as Gen Z’s third highest aspiration, there is strong potential to position Learning Abroad programs as a value-driven investment aligned with students’ personal and ethical values.

The Role of Financial Support in Learning Abroad Participation

The perception that students lack the financial means to participate in Learning Abroad programs is further challenged by the availability of funding. In 2024, Australian universities estimated that 51-70% of students who travelled overseas accessed OS-HELP to finance their experience (2024 Learning Abroad Survey, Q22). The eligibility criteria for OS-HELP are relatively broad: students must be enrolled in a Commonwealth Supported Place (CSP), studying full-time overseas for academic credit, and have sufficient remaining study load upon their return. Given these criteria, OS-HELP remains an accessible option for many students who plan their studies accordingly. Furthermore, 72% of universities confirmed offering internal institutional funding for students undertaking international programs (2024 Learning Abroad Survey, Q37).

Shifting the Narrative: Enhancing Financial Literacy and Awareness

Given the availability of financial aid and the discretionary income many students possess, the key issue may not be affordability but rather awareness. Should universities and Learning Abroad professionals place greater emphasis on educating students about funding opportunities and encouraging them to allocate their discretionary income toward international study experiences? As the saying goes, “the devil is in the details.”

Actionable Insights: A Reference for Universities

For educators and administrators seeking to better understand student financial behaviours and Learning Abroad participation, McCrindle Research provides valuable data-driven consumer insights. Leveraging this research can help bridge the gap between student spending habits and international study engagement, ensuring Learning Abroad programs remain accessible and relevant to today’s university cohort.

Infographic credit: McCrindle Research