A DELAY in the release of a crucial list of occupations that have priority for permanent residency visas risks further damaging Australia's $18 billion foreign education market.

The delay threatens the loss of thousands of overseas students, who rely on the list to choose their courses.

The unexplained delay by the federal government comes amid fears in the sector that rapid policy changes are harming it at a particularly delicate time, with the latest monthly data showing growth in overseas student enrolments continuing to slow.

Enrolments increased by only 5.9 per cent in March this year, compared with growth of 20.9 per cent in March last year, dragged down by falling enrolments in English language courses that are seen as a precursor to lucrative multi-year tertiary study.

Immigration agent Karl Konrad said the delay to the promised list "would be a huge blow to students".

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"There will be no trust from the students; they'll fear immigration may change the rules and there may not be (residency) visas left when they apply" over the medium term, Mr Konrad said.

The skilled occupation list -- upon which tens of thousands of existing and prospective students are sweating -- was supposed to be released yesterday. It will now be released later this month.

"Any further delays will have a significant impact on commencements and on TAFE institute business operations in the second half of this year," said TAFE Directors Australia acting director Pam Caven.

Uncertainty over the list is a key element in a sharp decline in forward enrolments from Australia's biggest offshore student market, China, which accounts for 27 per cent of enrolments and an even larger slice of revenue.

The delay comes at the start of the most crucial recruiting period for Australian universities and colleges, which runs from now until July.

Among overseas students anxiously waiting for the list yesterday was 21-year-old Singaporean and Macquarie University business graduate, Lynn Krishnan.

Ms Krishnan said she chose Australia to study in because "it was the closest Western country to Singapore", although promises of residency from her education agent were also a factor.

She said she loved Australia's "openness and friendliness", but was now on a bridging visa and worried she might not get a permanent visa.

"A lot of companies won't look at you," she said.

"They see you don't have a permanent visa, so you don't have a commitment to a company or the country.

"I am working as a waitress."