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Trump's attack on Harvard's foreign students targets key revenue for US universities

Trump's attack on Harvard's foreign students targets key revenue for US universities

Economic Times23-05-2025
Synopsis The Trump administration restricted Harvard University from enrolling foreign students. This action impacts university revenue across the US. International students often pay full tuition, subsidizing others. Other universities like Columbia University may face similar actions. Harvard already faces federal funding cuts. The administration accuses universities of failing to address antisemitism. Universities are facing financial challenges. The Trump administration's latest blow against Harvard University - cutting off its ability to enroll foreign students - rippled throughout higher education Thursday, because it aims at a major source of revenue for hundreds of schools across the United States.
ADVERTISEMENT Because international students are more likely to pay full tuition, they essentially subsidize other students who receive aid, said educational consultant Chuck Ambrose, former president of the University of Central Missouri.
The administration's move to stop foreign enrollment is a huge blow to Harvard and sends a message to other universities: "You could be next," said Robert Kelchen, a professor at the University of Tennessee who researches university finances.
Also Read: Harvard's ability to enrol international students halted by Trump administration
(Join our ETNRI WhatsApp channel for all the latest updates) Kristi Noem, Trump's homeland security adviser, said as much Thursday during an appearance on "The Story with Martha MacCallum" on Fox News. Noem was asked if the administration was considering similar moves at other universities, including Columbia University in New York. "Absolutely, we are," she responded. "This should be a warning to every other university to get your act together." Harvard's 6,800 international students make up 27% of its total enrollment. In 2023, foreign students made up an even higher share at 43 other schools with at least 1,000 students, according to data from the National Center for Education Statistics.
ADVERTISEMENT At Columbia University, which the Trump administration accuses of antisemitic policies, foreign students made up 39% of total enrollment in 2023, the NCES data shows. At 246 other schools with an enrollment of at least 1,000, at least 10% of students were from outside the U.S.
Also Read: US bans Harvard from admitting foreign students: What it means for nearly the 7,000 already on campus
ADVERTISEMENT Thursday's announcement comes as universities are already scrambling to make up for huge federal cuts in research funding. Harvard, which t Trump administration says has failed to address antisemitism and ethnic harassment on campus, has seen nearly $3 billion in federal contracts and research grants frozen or ended in recent weeks. Neither Harvard nor Columbia had comment on the financial impact of Thursday's move. "It's just another financial hit on top of several hits that have already come for big research universities," Kelchen said. "At this point the only thing that hasn't been touched is student financial aid."
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Also Read: Trump's Harvard visa threat could wipe out several of the school's sports teams
(Catch all the Business News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)
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