$7 bn loss and 60,000 layoffs – global student snub to hit US economy hard
The US authorities have done their part in setting red flags in the path of the international student community. Foreign nationals have now done their bit in pulling away from US colleges – what was once deemed a landmark in higher education.
On the basis of recent data from the US Student and Exchanger Visitor Information System (SEVIS) and the Department of State, NAFSA: Association of International Educators and JB International’s estimates show that the country could witness a loss of student enrollment as a high as 150,000 this fall.
Massive layoffs spurred by significant drop in intertnational student enrollment
Late August-early September marks the new academic semester, and the estimated forthcoming loss of international students in US colleges could end up costing the higher education sector nearly $7 billion. In addition to the projected economic slump, over 60,000 jobs across US cities are also expected to be impacted in what NAFSA CEO Fanta Aw is calling “one of the most significant drops in international enrollment in recent times.”
The NAFSCA CEO further noted that quantity isn’t the only thing that is going to take a hit. Quality will also be subsequently affected as “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.”
US lawmakers also backing international students, esp. Indians’ visa cases
Aw is not the only one to have sounded the alarm on the palpable aftermath of the US losing out on international student enrollment, which largely consists of Indian and Chinese nationals. In late July, several US lawmakers – a group of 14 Democrats and 1 Republican – represented research universities by sending out a letter to State Secretary Marco Rubio about the surging potential visa delays for Indian students.
Speaking out about reports on Indian students’ inability to obtain visas for education in the US, they highlighted that this particular group of international students alone contributed $9 billion annually to the US economy through university fees. Akin to Fanta Aw’s concerns, the US Congress members laid emphasis on how these “bright young individuals” kept the country “competitive” by contributing to science and research.
Last month, local news outlet The News&Observer also singled out North Carolina universities. The reported noted that a 2024 collection of data based on State Department and the Institute of International Education’s number showed how Indians had actually surpassed Chinese students in the total foreign student enrollment.
With the student-count going past 7,000, the Indian tally made for 29% of the American state’s overall foreign student enrollment. On top of that, more than 331,000 students with Indian roots were found to be studying in the US last year, again making it the highest number of international students from a particular country.
The numbers have been undeniably affected by a severe wave of setbacks. First came the visa interview suspension in late May, then enhanced social media vetting checks. Together, they contributed to a significantly low visa issuance rate.
Official numbers from the State Department’s side showed that F-1 (student visa) issuance rate slumped by 12% from January to April 2025 as opposed to where they stood the previous year during the same period. JB International CEO Jason Baumgartner is anticipating an even deeper dip for June, “as much as an 80-90% decline.”