A survey commissioned by IDP Education and provided to Guardian Australia found 62.5% of prospective students would be put off from studying in Australia if there was a significant increase to visa fees.

The survey, which received more than 1,400 responses last month, found 22% would choose another study destination if Australia’s visa became the most expensive in the world, while 40.6% would reconsider their options.

Director of partnerships and stakeholder engagement at IDP Connect, Joanna Storti, said there was “no question” there will be a decline in students applying to study in Australia.

“Quality students can also be very price conscious students, and a 125% increase overnight is a big leap of faith for visa applicants when grant rates are unpredictable right now,” she said.

“Markets are becoming increasingly price sensitive and Australia is now the most expensive by far. This will potentially provide pause.”

Storti noted the change comes amid a decline in Australia’s global rankings, dropping from equal first preferred study destination with Canada in IDP’s research last October to second place this year.

“International students are very tuned in to political debate and are attracted to destinations they feel welcome and valued,” she says.

“We’re quite concerned this visa increase sends a negative message about Australia, and students vote with their feet.”

Recent masters graduate, Julia Khadka, who comes from Nepal, said the previous fee of $710 was already a “significant financial burden” on Nepalese students.

“Australia, once a favoured destination, might now be out of reach for many, prompting them to seek more affordable alternatives,” she said.

Khadka says the news has been “particularly discouraging” as it comes during a high visa rejection rate.

The number of student visas granted to Nepalese applicants more than halved in the year to the end of May compared with the same period in the previous year, from 32,758 to just 12,962.

“I feel deeply for those aspiring to study abroad,” Khadka said. “Everything is getting more expensive, and this added financial burden makes it even harder for students to achieve their dreams.”

Jaspreet Gill, a UTS student from Ludhiana, India, recently completed a bachelors degree in biotechnology in Australia and is now pursuing a masters in teaching.

He said he felt grateful to be financially supported by his parents, who take care of his expenses, but was worried for his family and friends who don’t have a similar backing.

“Not every student has my support,” he said. “Some of my friends have taken education loans, I’ve spoken with them and they say it’s an extra financial pressure now to consider Australia.

“It’s going to deter some students. It’s just so high now.”

Devis, a masters student from Nepal who asked not to use his last name, said the visa increase will have a “profound impact” on the financial stability of students applying to study in Australia for the first time or looking to extend.

“This change suggests that the Australian government views international students as cash cows,” he said.

“International students face significant discrimination compared to other visa holders.”