As a result of battles over immigration policy and international student visas, fewer new students are choosing to study on U.S. college campuses this fall, and this comes at significant economic cost.
The number of new international students studying in the United States for the fall 2025 semester fell by 17%, according to fall statistics released earlier this month by the U.S. Department of State and the Institute of International Education.
International students at U.S. colleges and universities collectively contributed nearly $55 billion to the U.S. economy in 2024-25, including student spending as well as tuition revenue, according to IIE’s Open Door Report.
A separate analysis by NAFSA (International Association of Educators) found that this year’s sharp decline in enrollment, due in large part to changes in student visa policy by the Trump administration, is projected to cost the economy $1.1 billion.
A separate analysis by Inplan, an economic software and analytics company, found that the drop in enrollment would result in a loss of nearly $1 billion to gross domestic product, considering the direct loss in student spending and the ripple effects throughout the economy.
“International students don’t just attend classes; they support the local economy,” said Inplan economist Björn Markesson. “Their spending supports thousands of jobs, stimulates local businesses, and generates tax revenue that supports local services.”
Before the Trump administration suspended new visa applications in the spring, the U.S. had nearly 1.2 million foreign college and graduate students, most of them from India and China, making up about 6% of the total U.S. higher education population, according to the Open Doors report.
declining pipeline
Although the United States is the largest recipient of international students, its admissions pipeline was already under pressure. According to Open Doors data, the number of new students from overseas enrolling for the fall 2024 semester also decreased, marking the first decline since 2020-2021 during the coronavirus pandemic.
Other studies have shown that more restrictive student visa policies in the United States and changing attitudes abroad toward studying here are contributing to that decline.
“A close reading of last year’s and this fall’s enrollment numbers shows that the U.S. pipeline of global talent is in a precarious position,” NAFSA Executive Director and CEO Fanta Au said in a statement.
“The ripple effects of these policy changes are being felt across campuses and communities around the world,” Oh said.
Impact on US universities
The decline in international students has far-reaching economic implications, but universities and their students are hit hardest.
In addition to the value of international students’ perspectives, international admissions are an important source of income for universities because international students typically pay full tuition, according to an Open Doors survey of more than 825 institutions.
With fewer new students and fewer enrolled tuition fees, there are fewer resources for faculty, programs, and financial aid for U.S. students.
Ted Mitchell, president of the American Council on Education, previously told CNBC that these funds support universities’ financial aid capabilities.
“Full-paying international students pay scholarships to domestic students. It’s a one-to-one relationship,” Mitchell said.
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