New International Student Enrolments in US Colleges Drop 17% Amid Immigration Policies, Costing the Economy Over $1B

International student enrolment at US colleges dropped 17% in the fall 2025 semester, according to the Institute of International Education (IIE) and partner associations. The decline is linked to visa restrictions and stricter government policies introduced over recent years.

International students made up about 6% of the US higher education population and contributed nearly $55 billion (£41.5 billion) last year. They supported over 355,000 jobs across the country, highlighting their importance to the economy.

Economic impact of the decline

Analysis of IIE data by NAFSA revealed that the decline in enrolments this year will cost the US economy $1.1 billion (£831.7 million) in lost revenue and approximately 23,000 jobs. California is expected to lose around $161.9 million (£122.4 million), followed by New York at $152.5 million (£115.3 million), Massachusetts at $92.1 million (£69.6 million), and Texas at $64.6 million (£41.2 million).

Trump's Student Visa Policy Changes

According to NAFSA, the enrolment decline is due to the Trump Administration's changes in student visa policy.

The administration implemented multiple changes to international student visas. These include rescinding thousands of existing visas, increasing vetting and restrictions, and proposing new regulations to limit the duration of some visas to a fixed period.

For instance, a proposed regulation would limit F visas for international students to four years, requiring extensions afterward. The administration stated that these steps were intended to 'monitor' and curb visa abuse. However, the rules have caused chaos across US colleges and institutions.

'For too long, past Administrations have allowed foreign students and other visa holders to remain in the US virtually indefinitely, posing safety risks, costing taxpayers untold amounts, and disadvantaging US citizens,' the US Department of Homeland Security stated in August.

NAFSA Proposes Policy Solutions

NAFSA recommended several steps the Trump Administration could take to address the enrolment decline. It urged the government to improve visa availability and processing for all F and M students and J exchange visitors, exempt them from travel bans, safeguard F-1 student access to Optional Practical Training (OPT), and preserve the duration of status policy.

NAFSA also called on Congress to pass the Keep STEM Talent Act and provisions that create a pathway to a green card for F-1 students.

'A close read of enrollment figures from last year and this fall shows that the pipeline of global talent in the United States is in a precarious position,' said Fanta Aw, NAFSA's CEO.

According to an analysis by economic software company Implan, international students are vital to the economic health of US communities. Data on new students' spending shows they support $12.6 billion (£9.5 billion) in US GDP, over $6.6 billion (£4.9 billion) in labor income, and more than 93,000 jobs nationwide.

'International students do far more than attend classes — they sustain local economies,' said Bjorn Markeson, an economist at Implan. 'Their spending supports thousands of jobs, stimulates local businesses, and generates tax revenue that underpins community services.'

The decline poses a challenge for US higher education and the economy. Stakeholders emphasise the need for policies that attract and retain international students, vital for future growth and community prosperity.

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