Hipkins said the criteria for international student visas has been adjusted. This included that students in non-degree level courses would not get post-study work rights except where they are studying and then working in specified shortage and skilled occupations.
"The changes the Government announced yesterday will help ensure these students are getting value for their money and that those who stay on are helping fill skills gaps and contributing to the economy."
But Immagine immigration adviser Iain MacLeod said that was already the situation.
"The National government wanted this industry, and enticed people by dangling this pathway to residency.
"Nobody exploited it, there was no loophole. It was a government policy designed to attract students. National then quietly raised the bar, and then this government did it again to where we are now.
"Reading the new policy, they have changed basically nothing."
The Government confirmed today international fee-paying students under Year 9 will be able to continue to enrol at New Zealand schools, following consultation with the sector.
Remuera Intermediate principal Kyle Brewerton was "super happy" this morning to hear schools could continue to enrol international fee-paying students under Year 9.
The Ministry of Education has been consulting on whether to ban schools from enrolling those students.
Brewerton canvassed principals on the issue in his position as vice-president of the Auckland Primary Principals' Association, and found the vast majority were opposed to the changes.
Many schools feared they would lose a key source of funding as well as an important aspect of school life.
"The messages that came from the sector were pretty loud and clear," he said.
It appeared the Government had been looking for levers they could pull around the immigration rest, and had thought cutting the number of young students would provide some relief.
"But I think they underestimated hugely the impact on individual schools. It's not a huge amount of money but for individual schools there would be huge ramifications."
He was pleased the Government had listened to feedback. "That's the positive thing we've experienced with this Government - while there might be the odd curly, generally speaking they will engage and take on board what we're sharing. That collaboration is really appreciated."
Universities New Zealand – Te Pōkai Tara chief executive Chris Whelan said the country's eight universities were welcoming the announcement, which would see students arrive at their chosen university in time for the start of the 2023 academic year and in some cases to study later in 2022.
They also supported the simultaneous immigration rebalance announcement including the continuation of three-year post-study work rights for degree-qualified international graduates.
He said it was clear the Government had listened to the sector in setting the updated cost-of-living funds required by international students at $20,000 a year - up from $15,000 - rather than any higher, which would have been difficult for students.
Pre-Covid, universities and the other international education sub-sectors were New Zealand's fourth-largest export market, contributing around $5.1 billion in economic activity.
Although international university student enrolments were at a better-than-expected 72 per cent of pre-Covid levels in 2021, they are this year at around 30 per cent.
Consultation is also being launched tomorrow on the refresh of the New Zealand International Education Strategy 2022-2030, with a draft plan to be released also.
Hipkins said it reflected the "different world" post-Covid, and focus on "high-value and innovative international education offerings".
"It also looks at how the benefits that international students bring could be shared more regionally throughout Aotearoa.
"This would allow more New Zealanders to benefit from the presence of these students than in the past."
Hipkins also said he would travel to the USA and South America from late May to early June to promote international education.
