We don't "need" these foreign students however if we drastically reduced the numbers of foreign students the economy would take a decent hit.. It's a huge business that brings in bucket loads of cash..
@tasboy I don't think it's even remotely hard for Aussie kids to go to uni.. Sure the HECS/HELP debt will take a long time to pay off and be a burden on their future with all the interest unless they get straight into a very high paying job.