ALL 39 universities have finally opted into the government's streamlined student visa processing system amid warnings of the serious risks they face if any eventually fall short of Immigration Department standards.

Although most universities are believed to have been rated by the department at the low-risk level 2, it is understood a few have been rated at the higher risk levels 3 and 4, meaning they will have to raise their performance to avoid dropping out of the system.

But they will have time to improve and will not be held accountable until a review in March next year, when those still rated at level 3 will have a further six months to improve.

According to industry rumours, only two universities were rated initially at the lowest risk level 1, but both these were thought to have relatively small international student numbers.

The university of Notre Dame is rumoured to be one of these.

The Immigration Department has agreed to keep risk assessment levels confidential to avoid them becoming a proxy for quality.

Flinders University deputy vice-chancellor (international) Dean Forbes said the new system was innovative and would give Australian universities an edge, but he warned that a university would take a serious financial hit if the department stripped it of its eligibility status.

"For many Australian universities, the inevitable consequence of losing access to the streamline program will be a significant reduction in international students and a precipitous decline in revenue," Professor Forbes said at a conference in Melbourne last week.

"In a worst-case scenario, such as where this exacerbates reduced revenue due to the demand-based funding model, one or two might be pushed close to insolvency."

The University of Adelaide's pro-vice-chancellor (international), Kent Anderson, said although streamlined processing was positive, the government was effectively shifting responsibilities and costs on to universities.

Meanwhile, the International Education Association of Australia has reacted cautiously.

"We'll have to wait and see whether the additional obligations pay back the anticipated benefits," IEAA director Phil Honeywood said.

The Immigration Department's risk assessment levels use data on the performance of students against their visa conditions.