US Universities Face Declining International Enrollments, Economic Impact

US universities are facing significant financial challenges as international student enrollments decline due to stricter visa policies, geopolitical tensions, and reduced interest in studying in the US. Institutions like DePaul University have seen steep drops, prompting budget cuts. Asia, the largest source of international students, reported sharp declines, with arrivals from India down 45%. The downturn risks billions in economic losses, job cuts, and diminished US global competitiveness in research and STEM fields.

US universities are grappling with the fallout from tightened immigration and education policies, as international student enrollments decline, leading to financial challenges and institutional cutbacks. The downturn, which has been exacerbated by policy shifts from the Trump administration, visa hurdles, and geopolitical tensions, is leaving universities across the country in a precarious position.

DePaul University and Nationwide Challenges

DePaul University in Chicago has been hit particularly hard, seeing a 30% decline in international enrollment this autumn. The university’s total international enrollment fell by 755 students compared to last year, with first-year international graduate student numbers plunging nearly 62%. This has prompted immediate budget cuts, including potential hiring freezes, executive pay reductions, and limits on discretionary spending.

Robert Manuel, DePaul’s president, noted the severity of the situation in a memo to staff, saying, “We are all worried about the safety of our community members, the safeguarding of academic freedom, and the new financial challenges driven by changes in federal funding and visa processing. These concerns are so severe and debilitating that it’s getting hard to recognize higher education anymore.”

The decline at DePaul reflects a nationwide trend. According to the US Department of Homeland Security’s Student and Exchange Visitor Program, international student numbers in September fell 2.4% year-on-year, from 965,437 to 942,131. Early projections suggest this decline could accelerate, with NAFSA: Association of International Educators estimating a potential 15% drop in 2025 that could cost the US economy nearly $7 billion.

Impact of Visa Policies and Federal Stance

The Trump administration introduced stricter visa vetting procedures, including requiring students to make their social media accounts public during the application process. Visa delays, revocations, and heightened scrutiny have discouraged many students from pursuing education in the US. For instance, in May, the government temporarily blocked Harvard University from enrolling international students, citing issues related to antisemitism and harassment. Although this action was paused by a district court, the government has since appealed.

Tricia McLaughlin, assistant secretary at the Department of Homeland Security, emphasized that international students must remember they are “guests” in the country. She stated, “If you are living and studying in the United States on a visa, you are a guest in this country. Act like it. If you are a foreign student pushing Hamas propaganda, glorifying terrorists, harassing Jews, taking over buildings, or other anti-American actions, you can book yourself a ticket home.”

The resulting uncertainty has left many students and their families hesitant to choose the US as a study destination. Some students have chosen to remain in the US during breaks, fearing re-entry challenges, further reducing the number of new arrivals.

Asia’s Declining Contributions

Asia, which accounts for over 60% of international student arrivals, has seen significant declines. India, now the top sender of international students to the US with over 331,000 students in 2024, saw arrivals drop 45% in August 2025 compared to the previous year. Arrivals from China fell 12%, and overall student arrivals from Asia were down 24%.

Data from the International Trade Administration further revealed that total international student arrivals in August 2025 fell by 19% year-on-year, from approximately 387,000 to 313,000. This marks the lowest August intake since the COVID-19 disruption of 2021.

Economic and Academic Consequences

International students contributed nearly $44 billion to the US economy in the 2023–24 academic year, supporting almost 400,000 jobs. Universities, which rely heavily on the revenue from international students—who often pay full tuition and are not eligible for financial aid—are facing mounting financial strain. NAFSA notes that every three international students create one US job, making these declines particularly damaging.

Graduate students are a critical revenue source, often paying higher tuition fees, especially for STEM programs. Moody’s credit ratings agency warned that schools heavily reliant on international graduate students are the most vulnerable, as the loss of these students could have severe revenue impacts.

Beyond immediate financial losses, experts highlight the long-term effects on research, innovation, and the US’s global competitiveness in academic and STEM fields. Fanta Aw, executive director of NAFSA, stated, “International students drive innovation, advance America’s global competitiveness, and create research and academic opportunities in our local colleges that will benefit our country for generations.”

Moving Forward

The steep decline in international student enrollment underscores the need for a more consistent and welcoming approach to foreign students. Advocates and policymakers are calling for streamlined visa processes, clearer policies, and a commitment to fostering an inclusive environment. As the US strives to maintain its position as a global leader in education, addressing these barriers is critical for the nation’s economic health and academic future.

With billions of dollars and tens of thousands of jobs at stake, universities and government officials must take urgent steps to restore the US’s standing as a top destination for international students.