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The decline in commencing domestic undergraduate students in 2023 is likely reflective of increasing cost of living pressures and a strong labour market attracting potential students, particularly mature aged students. A record low of just 62 per cent of domestic students had completed their degree. As shown in figure 1, the total number of commencing undergraduate students in 2023 has dropped even further compared to a decade ago, and this decline is expected to continue.
Each of these factors is now presented with updated citations and specific data, which enhances understanding of how each contributes to university dropout. A quarter of all domestic students who commenced a bachelor’s degree in 2017 had dropped out by 2022 Domestic dropout rates at australian universities have reached record highs as tertiary institutions cause standards to decline by prioritising the lucrative international student market, according to a new report.
Financial distress is another reason, with 8% of students dropping out of university selecting this as their main reason in 2023, an increase from 3.5% in 2022
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