Japan’s international student population reached a record 336,708, according to JASSO. About 53% stay to work in Japan, and 82% of those hold the visa route for Technical/Humanities/International Services that can lead to permanent residency, though it is often used as a shortcut to staying. Universities have two main motives for recruiting more foreign students: top-tier universities seek larger international cohorts to boost world rankings, while many lower-tier private universities rely on foreign students to fill quotas and secure subsidies. If enrollment falls, subsidies shrink, and after three consecutive years below 80% subsidies can be cut in half, hurting investments in facilities, hiring, and new programs. Local governments and universities collaborate to justify public spending. This is Part 2 of a two‑part series examining immigration policy and the real motives behind the study-to-work path.