International student enrollment decline could cost $1 billion: Reports
Following the fight over immigration policies and international student visas, fewer new international students chose to study on U.S. college campuses this fall, at a significant economic cost.
According to one study, there was a 17% decrease in the number of new international students studying in the United States in the fall 2025 semester. autumn snapshot A report from the U.S. Department of State and the Institute of International Education released earlier this month.
International students at U.S. colleges and universities contributed nearly $55 billion to the U.S. economy during the 2024-25 academic year, including student expenses as well as tuition revenue, according to the report. IIE’s Open Doors report.
This year’s sharp enrollment decline, largely due to changes made by the Trump administration to student visa policy, is expected to cost the economy $1.1 billion, according to a separate report. analysis From NAFSA: International Association of Educators.
A separate analysis by implantan economic software and analysis company, found that when the direct loss in student spending is factored in as well as ripple effects across the economy, the decline in enrollment translates into a loss of nearly $1 billion in gross domestic product.
“International students do much more than attend classes; they keep local economies afloat,” said Bjorn Markeson, an economist at Implan. “Their spending supports thousands of jobs, stimulates local businesses and generates tax revenue that supports community services.”
Before the Trump administration imposed a temporary pause on new visa applications in the spring, there were approximately 1.2 million international undergraduate and graduate students in the United States, mostly from India and China, accounting for about 6% of the total U.S. higher education population, according to the Open Doors report.
A diminishing pipeline
The US was the top host country for international students, but the enrollment pipeline was already under pressure. Fewer new students from abroad enrolled for the autumn 2024 semester, marking the first decline since 2020-2021 during the Covid pandemic, according to Open Doors data.
Other research shows that more restrictive student visa policies in the United States and changing attitudes about studying abroad here are contributing factors to this decline.
“A close reading of enrollment figures from last year and this fall shows that the global talent pipeline in the United States is in a precarious position,” Fanta Aw, NAFSA’s executive director and CEO, said in a statement. he said.
“The ripple effects of these policy changes are being felt on campuses and communities around the world,” Aw said.
Impact on US colleges
While the decline in international enrollment has broader economic impacts, colleges, universities, and the students they serve the hardest hit.
In addition to the value of international student perspectives, foreign students often pay full tuition, according to Open Doors’ survey of more than 825 institutions; This makes international enrollment a major source of revenue for colleges and universities.
With fewer new students and tuition fees coming in, there are fewer resources available for faculty, programs, and financial aid for U.S. students.
These funds support universities’ ability to provide financial aid, Ted Mitchell, president of the American Council on Education, previously told CNBC.
“International students paying full fee pay scholarships to domestic students; it’s a 1-to-1 relationship,” Mitchell said.
