Monash University academics Dr Bob Birrell and Bronwen Perry's research into immigration policy and the international student industry revealed students enrolling in hairdressing, cooking and hospitality rose by 800per cent in four years.

The figures show 40,525 students - 18,269 of them Indian - enrolled in those VET courses in 2008 compared with 2483 students, 217 of them Indian, in 2002.

Experts believe recent changes to Australia's skilled migration program, which will abolish the Migration Occupations in Demand List, will have a major impact on the VET sector.

Jobs such as hairdressing and cooking do not appear on the new Skilled Occupations List (SOL), a move the Government said would "limit eligibility for independent skilled migration to a more targeted set of occupations, to meet future skill needs".

But people in the education sector fear that many overseas students will be left in limbo.

Dr Birrell, from Monash University's Centre for Population and Urban Research, said the figures should have caught the attention of immigration department officials before now.

"These students have invested a lot of money but changes to the skilled occupations list will affect their arrangements."

Dr Birrell said for Australia's international student industry to remain sustainable it must focus on providing qualifications that overseas students could take back to their country of origin with profit.

The Minister for Immigration and Citizenship, Senator Chris Evans last week said changes to the immigration policy would in no way affect international students coming to Australia to gain a legitimate qualification with the intention of returning home.

He said although the Government recognised the changes would affect some overseas students already in Australia and intending to apply for permanent residency, student visas to Australia were for study, not to stay permanently.

He said international students would still be able to apply for permanent visas if their occupation was on the new SOL.

If not on the new SOL, they have until December 31, 2012, to apply for a temporary skilled graduate visa when they complete their studies.