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This could be an existential issue for some big name UK universities, some of which are reliant on international fees from EU students. inews.co.uk/news/politic...

If fees for EU student suddenly plunge to home student levels, then those unis lose a big slice of their income – certainly enough to mean yet more job losses and course closures, but possibly enough to just make the whole operation non-viable.

The option being touted instead is to peg EU student fees lower than international fees, so unis don't make a surplus on them, but higher than home students, so they don't make a loss.

That's still a huge loss relative to their current position, unless the demand from EU students rises sufficiently to cancel out the loss.

However, if EU fees genuinely are set at *marginal* cost, then demand can't cancel out the loss: however many EU students you have, the critical loss stays the same; it's just made across a greater number of students.

From a purely financial perspective, the outcome that UK unis need to see is: 1) EU fees set at a rate that's high enough to deliver a modest marginal return, but low enough to attract to a lot more EU students And...

2) Reciprocal EU mobility such that home students can study outside the UK and will choose to do so in sufficient numbers to mean that there is space at UK unis for more EU students to come in, but not in such great numbers that outflows aren't greatly outweighed by inflows.

That's a knife-edge calculation and we don't have enough data or understanding to predict the elasticity of different price points.