Fewer international students enrolled at U.S. colleges this fall, a trend experts warn could cost the economy more than $1 billion. The fall 2025 semester saw new international student enrollment drop 17%, according to data from the U.S. Department of State and the Institute of International Education (IIE).
International students contributed nearly $55 billion to the U.S. economy during the 2024-25 academic year through tuition and personal spending, but the sharp decline in new arrivals—largely linked to stricter student visa policies introduced under the Trump administration—is projected to cost roughly $1.1 billion, according to analysis from NAFSA: Association of International Educators. Additional economic modeling by Implan estimates the overall impact, including ripple effects, at close to $1 billion in lost GDP. “International students do far more than attend classes — they sustain local economies,” said economist Bjorn Markeson. “Their spending supports thousands of jobs, stimulates local businesses, and generates tax revenue that underpins community services.”
Before the visa policy changes, nearly 1.2 million international students—mostly from India and China—were enrolled in U.S. colleges, representing about 6% of the total higher education population. Even prior to the current decline, international enrollment was under pressure, with the first drop in new students observed in fall 2024 since the Covid-19 pandemic. More restrictive visa policies and shifting global attitudes about studying in the U.S. have exacerbated the situation.
Colleges and universities face immediate impacts beyond economics. International students typically pay full tuition, which funds scholarships and resources for domestic students. “Full-paying international students pay scholarships for domestic students — it’s a 1-to-1 relationship,” said Ted Mitchell, president of the American Council on Education. With fewer students enrolling, institutions have less funding for faculty, programs, and financial aid, affecting both campus operations and the student experience.
NAFSA executive director Fanta Aw emphasized the broader implications, noting, “The ripple effects of these policy changes are being felt across campuses and communities around the world,” highlighting the precarious state of the U.S. pipeline for global talent.