From 1 April 2012 the Tier 1 Post Study Work (PSW) Visa will cease to exist. This forms part of a wider policy to restrict the numbers of migrants coming to the UK. The Tier 1 PSW visa has been a key factor in attracting international students to the UK as it allows successful degree-level graduates to remain in the UK with the right to work for up to 2 years. This visa did not count towards Indefinite Leave to Remain (ILR).
Many other countries offer similar incentives to attract international students as the high fees paid by them helps to keep the cost of education lower for the citizens of such countries.
A few years ago Australia made a similar move to the one the the UK Government are about to make in an effort to appease those against migration. This proved to be a disaster as the educational establishments struggled financially due to the resulting loss of income. The Australian Government had to quickly reverse their decision. It is feared that the UK Government have learned nothing from this and are about to put yet further financial strain on an educational system that is already struggling in the current climate.