I remember watching that TV program Border Force (something along the lines). I was amazed to see such operations fronting as universities and colleges in UK, encouraging illegal immigration. I admit I've only seen the program a few times, but in some ways it was an eye-opener for me.
I think with regards to students .... if it's a financial issue that is leading to UK students losing out to international students for seats on courses, then perhaps the government needs to address that issue with Universities, whilst not allowing education standards to dop. If the international students have better education records than the UK students (prior to University), then the government needs to improve education standards. Lets not forget that UK students can choose to study abroad themselves, as is done by students in many countries.