AS far as immigration mandarins are concerned, Jinal Patel is meeting a critical skills shortage in hairdressing. But it may not be that cut and dried.

Migration experts have branded as a loophole a scheme that gives preference to onshore students who study trades such as hairdressing and cookery.

Ms Patel paid $16,500 to a migration agent in her home town of Gandhinagar, in India's west, for the ironclad promise of permanent residency in Australia. She arrived on a student visa in July.

In the process, the 23-year-old became part of the largest and fastest-growing sector of our immigration program: young people who arrive on student visas and change their status, usually by completing a trade certificate in hospitality.

There are about 20,000 of these students who achieve permanent residence each year. Most have university degrees, particularly in accounting. But there has been a surge in the number of trade-qualified cooks and hairdressers -- and their numbers are likely to escalate in the near future.

These students make up about half of the skilled migrants selected under Australia's points-tested skilled migration program.

Sydney-based Ms Patel, whose husband is here on a dependent spouse visa and doesn't work, said Australian immigration authorities did not deem her bachelor of commerce degree sufficient to give her permanent residency.

Once Ms Patel, who also doesn't work and is being supported by her family back home, and fellow student Eileen Li, from Fouzhou in southern China, complete their two-year hairdressing certificates, their papers will be stamped by Trades Recognition Australia.

They will then submit their applications for permanent residency to the Department of Immigration and Citizenship and will be given permanent residency.

Immigration expert Bob Birrell said that, in 2005, there were 10,782 overseas students starting courses in the service, hospitality, and transport areas.

"In 2006 there were 18,524 and in 2007 there were 30,492," Professor Birrell said. "Of these, in 2005 some 1800 were from India, rising to 4661 in 2006 and 11,866 in 2007. They will be seeking permanent residency at the end of 2008 and in 2009."

Sydney-based migration agent Mark Webster said the fast track for trade certificates in hairdressing and cooking was "a loophole" and called for the Government to re-examine its migration program.

"The system doesn't really pick people the economy needs," Mr Webster said.

"I don't think anybody has asked themselves if that's the best way for the immigration program to be run."

The students are flooding into private colleges set up under competition reforms introduced by the Howard government as an alternative to TAFE.

An industry insider at one private hairdressing school said that in a class of 26, maybe six actually wanted to be hairdressers.

"They are just doing it to get permanent residency," the source said. "But once they have paid their $15,000 a year, the bosses are not going to fail them, are they?"

The occupations of cook and hairdresser have been on the preferred list for immigration for four and nine years respectively but Professor Birrell said the large numbers of migrants coming here supposedly to fill the gaps "are not solving Australia's skill shortage problem".

"However, by leaving hospitality jobs on the eligible occupation list they are acting as a beacon of opportunity for migrants to come here," he said.

Professional Hairdressers Association chief executive Gregory Christo said the private colleges were "bastardising the industry".

"This is a huge problem," Mr Christo said. "The vast majority (of migrant students) are using hairdressing to get residency with no intention of staying in the industry."