How foreign students with lower grades jump the university queue

The only sure fire way to stabilize our universities is to charge students more for attending them, even though UK and EU students now pay 9k a year that is still only around 60-65% of what it actually costs to educate them, how much public funding they get really depends on the university but even for top universities like Oxford the amount is not enough to cover the total costs leaving between 1-4k for the university to find themselves.

Compare that to a university like Stanford in the US, they charge around 26k a year and as you can imagine make a tidy profit because of it, that profit not only helps them to maintain their standards of education but also helps them to improve departments and secure research projects that usually result in even more profit.

So your idea is "well we are already in debt, why not double down and borrow more for the universities?" This kind of thinking has contributed to the current sorry economic state of the country's economy and the global economy as a whole. If the country keeps spending it will drive it only further down into recession and perhaps even a downgraded credit rating.

I blame the Tories.

You do realize that this has been going on for a very long time? In fact it has been the case ever since Margaret Thatcher introduced fees for international students. If it was indeed such a bad policy why then did Labour in 13 years not do anything about it?

Anyway it is hardly surprising at all that this is going on now, most universities even Russell Group ones are essentially struggling with their finance and having to deal with massive funding gaps, end of the day money may get you a place at the university but only good brains will get you out with a degree.

I won't be surprised if in future the cap on home/EU students would almost 100% be dependent upon how many overseas students the uni is able to admit first.

Have I stated that? No I made a reasonable suggestion, that the government is borrowing regardless, but there are major holes in the budgets of higher education, I suggested that they should try to help stabilise it, that doesn't mean borrowing a large amount. But enough to help universities through such a dramatic change in their budgets. I'm also thinking in long term as well, supporting infrastructure and things like education do certainly help the economy, these areas are vital to keep attracting foreign firms.

Again you miss the point, borrowing needs to be slowed FULL STOP. You seem not to grasp how dire the economic situation is, or basic economics at all for that matter.