Learning from Crisis: How International Examples Can Guide US Higher Education's Future
Written by Charles Cormack, Chairman of Cormack Consultancy Group
As someone who has spent over 25 years working with universities across the globe, I've witnessed how higher education institutions respond to existential challenges. The current pressures facing American universities—visa restrictions, funding cuts, and policy upheaval—are undeniably significant. But they're not unprecedented. What's remarkable is how similar crises in Australia and the UK have actually strengthened those sectors, providing valuable lessons for American institutions willing to learn.
The narrative surrounding US higher education in 2025 has been overwhelmingly pessimistic. While acknowledging the real challenges posed by enhanced visa screening, proposed federal funding cuts, and policy uncertainty, I believe this focus on crisis misses a crucial opportunity. The disruption currently affecting American universities is forcing exactly the kind of strategic rethinking that has enabled other world-class higher education systems to emerge stronger from their own periods of upheaval.
Through my work with Cormack Consultancy Group, I've had the privilege of supporting universities through transformative partnerships during some of their most challenging periods. Time and again, I've observed that institutions which embrace change and innovation during difficult times don't just survive—they establish competitive advantages that serve them for decades.
Australia's transformation: From crisis to record performance
The Australian experience provides perhaps the most compelling example of how severe disruption can catalyse positive transformation. When COVID-19 struck in 2020, Australian universities faced what many considered an existential threat. International borders closed completely for nearly two years. The sector lost approximately A$1.8 billion in revenue. Over 40,000 jobs were eliminated. International student revenue, which had become crucial to university finances, disappeared virtually overnight.
The parallels to current US challenges are striking. Just as American universities now face visa processing delays and enhanced screening procedures, Australian institutions confronted complete border closures with no timeline for reopening. Like US universities grappling with federal funding uncertainty, Australian institutions had to rapidly diversify revenue streams and operational models.
What happened next defied predictions. Rather than retreating into defensive postures, leading Australian universities accelerated their international engagement through innovative delivery models. By 2024, the University of Melbourne achieved record revenue of A$3.7 billion, while Monash University reached A$3.8 billion—both significantly exceeding pre-pandemic levels.
Monash University's strategy exemplifies transformational thinking. Instead of viewing international expansion as risky during uncertain times, Monash leveraged its existing global footprint spanning Malaysia, Indonesia, Italy, India, and China. The Malaysia campus, established in 1998 as the first foreign university in Malaysia, became a crucial revenue generator hosting over 8,000 students from 75+ countries while maintaining exceptional quality standards with a 6-star SETARA rating.
The genius of Monash's approach lies in its 2+2 model, which allows students to complete initial studies at offshore campuses before transferring to Australia. This structure provides multiple benefits: students gain access to Australian qualifications without immediate visa requirements, the university generates revenue from diverse geographical sources, and the institution maintains flexibility to adapt to changing policy environments.
Revenue diversification proved equally crucial. The University of Melbourne generated A$974 million in investment returns from 2021-2024 while launching a A$1 billion philanthropic campaign. These weren't desperate measures—they were strategic investments that recognized the importance of reducing dependence on any single revenue source.
Perhaps most significantly, Australian universities pioneered hybrid delivery models that maintained international engagement despite travel restrictions. By 2024, international enrollment had increased 13% compared to 2019 levels, with international student fees rising 19% sector-wide. This wasn't simply recovery—it was growth built on more resilient foundations.
The UK's transnational education mastery
British higher education offers equally instructive lessons, particularly in the development of transnational education (TNE) as a strategic priority rather than an opportunistic add-on. UK transnational education reached 558,215 students across 230 countries in 2021-22, generating £2.3 billion in income—a remarkable 112.9% increase since 2010.
This growth occurred during overlapping crises that mirror current US challenges: Brexit created policy uncertainty and disrupted established relationships, COVID-19 imposed travel restrictions, and domestic funding pressures required new revenue sources. Yet UK universities not only maintained their international engagement but dramatically expanded it.
The University of Nottingham's multi-campus strategy demonstrates how prestigious institutions can scale globally while maintaining quality. The Malaysia campus hosts over 5,500 students from 75+ countries on a purpose-built 100-acre campus, while the China campus in Ningbo produces 1,500 graduates annually with an impressive 98% employment or further study rate within six months.
What makes this model particularly relevant for US universities is its emphasis on partnership-based expansion rather than unilateral campus development. The integrated programme structure creates flexible pathways while generating revenue from multiple sources and reducing dependence on any single market or policy environment.
King's College London exemplifies how even the most prestigious institutions can expand access through innovation. The SUSTech-King's Joint School of Medicine in Shenzhen represents the first Sino-British medical school, while regional hubs span Indonesia, Egypt, and Singapore. These partnerships demonstrate how elite institutions can maintain academic standards while dramatically expanding global reach.
Digital delivery innovations have created permanent competitive advantages. Distance and flexible learning now account for 27.5% of all UK transnational education provision, with universities maintaining rigorous academic standards through sophisticated online platforms. The COVID-19 experience validated that thousands of international students could effectively study "transnationally" from home countries, proving the viability of hybrid models that continue driving growth.
Currently facing their own funding challenges, UK universities are responding by moving more aggressively into transnational education as a strategic response to over-reliance on inbound international students. This strategic shift is generating additional revenue while reducing vulnerability to policy changes affecting student mobility.
Research collaboration: Thriving despite political uncertainty
Both Australian and UK universities have demonstrated that research excellence and international collaboration can flourish even during periods of political disruption. Despite Brexit uncertainties, UK universities maintained 60.4% of research output with international co-authors, successfully negotiated Horizon Europe association worth €95.5 billion through 2027, and preserved over 1,400 European Research Council grants worth €1.8 billion.
This success reflects strategic institutional management and the development of bilateral partnerships that can overcome political obstacles while strengthening international engagement. Rather than retreating from international collaboration, these universities doubled down on building resilient networks that transcend temporary policy disruptions.
Australian universities similarly developed alternative funding sources and research partnerships that reduced dependence on traditional government funding while maintaining research excellence. The Australia-Germany Joint Research Co-operation Scheme and similar initiatives created international networks that provided alternative funding sources, collaboration opportunities, and student mobility pathways that proved more flexible than traditional exchange programs.
Lessons for American universities
The experiences of Australian and UK universities offer several crucial insights for American institutions navigating current challenges:
Embrace international expansion as opportunity, not risk. Both Australian and UK universities accelerated rather than reduced their international engagement during crisis periods. This counter-intuitive approach created competitive advantages and revenue diversification that strengthened their market positions.
Develop partnership-based delivery models. The most successful international expansion strategies focus on bringing education to students rather than requiring student mobility. Franchise agreements, validation partnerships, joint degrees, and offshore delivery create revenue opportunities that bypass visa restrictions while expanding institutional reach.
Invest in hybrid delivery capabilities. Digital innovation shouldn't be viewed as inferior to traditional campus-based education. Sophisticated hybrid models can maintain rigorous academic standards while offering unprecedented flexibility and expanding global access.
Diversify revenue streams strategically. Both sectors demonstrate the importance of reducing dependence on any single revenue source. Industry partnerships, executive education, international programme delivery, and enhanced alumni engagement create resilient financial foundations.
Maintain long-term perspective during short-term disruption. The most successful responses position institutions for sustained growth rather than simply surviving immediate difficulties. This perspective reveals opportunities that crisis-focused thinking often misses.
The innovation imperative
What strikes me most about the Australian and UK experiences is how crisis catalysed innovation that these institutions might not have pursued under normal circumstances. The forced experimentation led to discoveries about more effective delivery models, stronger partnership structures, and more sustainable revenue generation.
American universities possess extraordinary strengths that position them well for similar transformation: entrepreneurial culture, research excellence, global brand recognition, and established international networks. The current challenging environment creates unprecedented opportunities for institutions willing to embrace innovation and reimagine traditional models.
The choice facing American higher education is simple. Universities can embrace transformation to build stronger, more resilient institutions, or maintain traditional approaches that may limit future growth. The examples from Australia and the UK demonstrate that higher education institutions can not only survive severe disruption but achieve record performance through strategic innovation and international engagement.
Building tomorrow's universities today
The window for strategic transformation remains wide open, and institutions that act now will establish market leadership in the evolving global higher education landscape. American universities have always excelled when responding to challenges with innovation, creativity, and bold thinking. The current environment demands exactly these strengths.
Rather than viewing current policy restrictions and funding pressures as threats to be endured, forward-thinking universities can use this moment to build more globally connected, financially resilient, and strategically positioned institutions. The Australian and UK examples provide proven blueprints for universities ready to transform challenges into competitive advantages.
The question isn't whether American higher education will survive current disruption—it's whether individual institutions will seize this opportunity to build something stronger and more sustainable for the future. Those that do will shape the next chapter of global higher education leadership.
Charles Cormack is Chairman of Cormack Consultancy Group, a specialist transnational education consultancy established in 1999. CCG works with universities across the UK, Ireland, Europe and the USA, supporting them in the development of international partnerships, and is now the leading consultancy in the UK, working with around ¼ of all UK universities.
References
[1] Times Higher Education. (2025). Melbourne and Monash universities post record earnings. [2] Universities UK International. (2023). The scale of UK HE TNE 2021-22. [3] University of Nottingham. China & Malaysia Campuses. [4] University of Melbourne. (2024). Annual Financial Report. [5] The Conversation. (2022). After 2 years of COVID, how bad has it really been for university finances and staff? [6] King's College London. International education partnerships. [7] UKRI. Horizon Europe: help for UK applicants. [8] State Department. (2025). Enhanced Social Media Vetting Procedures for Student Visas. [9] Congressional Budget Office. (2025). Higher Education Provisions in Budget Reconciliation Bill. [10] The PIE News. (2025). How Trump is Reshaping Global Student Mobility.