Other countries are trying harder these days to grab a slice of the lucrative foreign market. American institutions are recruiting more foreign students, and an increasing number of universities around the world-in Germany, Japan and China, for example-are offering courses taught in English. Yet another threat comes from Britain's stalling economy. Aware that overseas students are lured by the prospect of staying and working for a while after they graduate, universities recently persuaded the government to loosen constraints on their doing so. Now, however, jobs are scarce, which may make some parents think twice about investing a medium-sized fortune in a child's British future.

Universities are turning increasingly to private partners to help them solve these twin problems: the increasing recruitment of foreign students by other countries, and the need to offer suitable tuition for non-standard foreign learners while keeping home students happy. Since signing up UEA in 2006, INTO has made deals with four other British universities (and Oregon State University, its first partner outside Britain) and is in discussions with several more. Its founder, Andrew Colin, reckons nearly 30 other institutions have agreements with one of his four competitors.

It is striking that internationally mobile students do not choose the cheapest options: the top three destinations-Australia, Britain and America-are among the priciest. But it would be a mistake for universities to think cost didn't matter, says Robin Bew of the Economist Intelligence Unit, a sister company of The Economist. Although students are suspicious of the quality of free, or very cheap, higher education, big shifts in exchange rates are important when they make their final decisions about where to study. “The upturn in student recruitment to American universities in 2007 was, in our opinion, largely attributable to the falling dollar,” says Mr Bew.

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