The UK government confirmed a deal to rejoin the EU’s Erasmus+ student-exchange programme for the 2027–28 academic year and committed funding to participate, a move universities say could help rebuild EU student flows lost after Brexit. Analysis shows EU enrolments in UK institutions have roughly halved since 2020–21, hitting mid-tier, teaching-focused campuses hardest. Officials negotiated a contribution for the initial participation year and expect thousands of student exchanges, apprenticeships and staff placements. Experts tell Times Higher Education the return may restore campus diversity and provide on‑year-abroad guarantees for modern language programs, but the long-term financial effects are uncertain: certain EU students may use Erasmus placements as a substitute for UK study rather than a pipeline to postgraduate enrolment. For academic leaders, the announcement requires operational planning for mobility offices, tuition and fee policies for incoming EU students, and targeted recruitment to ensure the programme restores rather than displaces revenue. Departments vulnerable to enrollment declines should model scenarios for undergraduate and postgraduate flows post‑Erasmus reentry.