OVERSEAS students at the University of Newcastle now make up almost a quarter of its enrolments and contribute an estimated $100 million to the region's economy.

An investigation by The Herald has found international student enrolments at the institution have increased five-fold over the past decade and now top 6500 across its Australian and Singapore campuses.

Foreign students paid $44.4 million in university fees in 2008, which was just under 10 per cent of the university's income.

It comes as the Federal Government reacts to problems in the international student market including visa and work trial scams as well as violence towards students.

The Office of Fair Work announced last week a crackdown in the Hunter on dodgy employers.

An Access Economics report released in April estimated that on top of fees each foreign student contributes $28,921 to the Australian economy in housing, food, tourism and visitors.

If only half was spent in the Hunter, the 4000 on-shore international students at the University of Newcastle would have contributed $58.1 million to the region's economy and created 1000 jobs in 2008.

The education sector has risen to become Australia's third largest export behind coal and iron ore, and nationwide in 2008 international student numbers were up 17.6 per cent on 2007.

The University of Newcastle is popular among students from Asia, especially China, but also has large numbers of students from Saudi Arabia and the United States who study a mix of post graduate, English language and undergraduate degrees.

Deputy Vice-Chancellor (global) Professor Kevin McConkey said international students provided more than just fees to the university and did not take Australian student places.

He said they contributed to research, cultural diversity and their links with Newcastle was an investment in the region's future.

He said they were also trying to help foreign students avoid problems students faced in Sydney and Melbourne.

"Information is what protects people from the scams," he said.