The U.S. Sees A Great Decline in International Students and Billions in Economic Losses

New international student enrollment at U.S. colleges dropped by 17% in the fall of 2025, according to a report from the U.S. Department of State and the Institute of International Education. This drop is largely due to stricter visa restrictions and other policy changes under the Trump administration. 

Over the 2024-2025 academic year, international students at U.S. colleges and universities contributed nearly $55 billion to the U.S. economy including tuition revenue as well as student spending. The drop in enrollment this year is projected to cost the economy about $1.1 billion, according to NAFSA. A separate analysis by Implan found that the drop in enrollment amounts to a nearly $1 billion loss to GDP.

Economists note that international students support local businesses, create jobs, and generate tax revenue, and that before the visa restrictions nearly 1.2 million international students studied in the U.S. However, international student enrollment has been declining for two years now beginning in 2024. Changing attitudes abroad about studying in the U.S. and the more restrictive visa policies have accelerated the decline.

The article notes that while international student enrollment has broader economic effects, colleges and universities and the students they serve are the hardest hit. Because many international students pay full tuition, their enrollment helps fund academic programs, faculty positions, and financial aid for U.S. students. Ted Mitchell, president of the American Council on Education notes that full-paying international students often enable scholarships for domestic students, meaning the decline strains student support and institutional budgets.

I think besides the economic consequences, there's a significant soft power cost because U.S. universities have been one of the nation's strongest tools of global influence. With the decline in international students, other countries like Canada and Australia can gain ground in attracting global talent, and that could shift diplomatic and cultural influence in the future away from the U.S.

https://www.cnbc.com/2025/11/30/international-student-enrollment-decline.html