International Students Contributed Record-Breaking $44 Billion To U.S. Economy During Past Academic Year: Report

The State Department announced this week it would temporarily halt interviews abroad with foreign citizens applying for student and exchange visas, while also moving to revoke the visas for some Chinese students. Experts warn the move could severely damage the U.S. economy due to the money these students contribute to the country.

During the 2023-2024 school year, the more than 1.1 million international students who studied in the U.S. contributed nearly $44 billion to the U.S. economy, according to the nonpartisan nonprofit NAFSA, the Association of International Educators. From $10 million contributed to Alaska, to more than $6 billion in California, international students also supported more than 378,000 jobs.

The number of international students has increased over the years. Last year’s number of students in the U.S. represented a 7% increase from the previous academic year, according to Open Doors’ 2024 Report on International Educational Exchange.

“The experience of studying in the United States not only shapes the lives of individuals, but the future of our interconnected world,” said Scott Weinhold, with the Department of State Bureau of Educational and Cultural Affairs in a statement announcing the Open Door findings. “The ties formed between U.S. and international students today are the basis of relationships for future business and trade, science and innovation, and government relations.”

States with a higher concentration of international students see the highest economic benefits. For instance, the nearly 90,000 international students studying at the more than 250 colleges and universities in Texas during the last academic year contributed $2.5 billion to the local economy, The Washington Post reports. Similarly, the 82,000 international students in Massachusetts contributed an estimated $3.9 billion.

The loss of international students could have ripple effects in the job market, experts warn. In fact, the administration’s controversial decision could have a serious impact on “everything from real estate to restaurants to pretty much any business you can imagine that gears toward consumers,” said Constantine Yannelis, an economics professor at the University of Cambridge in Britain.

“Local real estate is relying on renting to students. If there is a significant drop in the number of students, it will have a huge effect on the real estate market,” Yannelis said. “Many local businesses, movie theaters, bars— there will be a drop in demand.”

The loss of these contributions is not something that universities can easily make up by accepting more domestic students, Yannelis said, because international students tend to pay more than their American classmates, who can benefit from in-state tuition and a wider range of financial aid, The Post reports. He predicted universities might have to cut back on course offerings or financial aid.

For now, a federal judge temporarily blocked the administration’s efforts to revoke Harvard University’s ability to enroll international students, just a day after the Department of Homeland Security said it would terminate the school’s certification that authorizes it to enroll international students and scholars.

However, as the administration seeks to revoke Chinese students’ visas and halt the interview processes, the attacks on higher education are far from over.