How international students help sustain the budgets of these US colleges

Business Standard

24-05-2025

A federal judge on Friday temporarily halted a move by the Trump administration that threatened to prevent Harvard University from enrolling international students. Had the order taken effect, it would have impacted more than a quarter of Harvard's student population — a shift significant enough to upend its campus life and put considerable strain on tuition revenue.
The attempted restriction underscores the broader vulnerability of American universities under an administration often at odds with the higher education sector. Institutions with even greater shares of international students, including Columbia University, Carnegie Mellon, New York University (NYU), and Johns Hopkins, face similar risks, the New York Times reported. What was once a symbol of global prestige and financial vitality for these schools has now become a potential liability.
Illinois Tech leads in international student enrolment
Other top-ranking institutions include Carnegie Mellon University (44 per cent), Stevens Institute of Technology (42 per cent), and Northeastern University (40 per cent). Ivy League schools also feature on the list — Columbia (40 per cent), Harvard (28 per cent), and Princeton (24 per cent) — though with comparatively lower international shares. NYU and the University of Southern California (USC) also maintain strong global appeal, with international enrollment at 37 per cent, and 28 per cent, respectively.
The data reflects the deepening dependence of American higher education institutions on international students, particularly among selective four-year colleges with at least 1,000 full-time enrollees.
A two-decade rise in international enrollment
The growing presence of international students in US colleges is a trend two decades in the making. Rising middle-class wealth in countries like China and India has fuelled an increase in families sending children to study abroad, with the United States a leading destination, the news report said.
Domestic funding pressures have further driven this trend. Public research universities, in particular, have leaned on international students, who generally pay full tuition, to make up for dwindling state support for higher education.
The report quoted Gaurav Khanna, an economist at the University of California, as saying, 'We have all this debate about trade deficits with China right now."
'That's a deficit in goods. But when you think of services — like higher ed services — we have a big surplus," Khanna added.
Higher education as an economic export
Beyond the classroom, international students bring billions into the US economy. In the 2023–24 academic year, over 1.1 million foreign students contributed an estimated $43 billion, largely through spending on tuition and living expenses, according to nonprofit international education group NAFSA.
Unlike many American students, who benefit from financial aid or in-state tuition discounts, international students often pay full tuition — in some cases, even higher than standard out-of-state rates. This pricing structure results in international students often contributing over one-and-a-half times more in tuition than their US peers, explained Mirka Martel, head of research at the Institute of International Education, the news report said.
Financial and academic implications of declining enrolment
The revenue from international students supports not just campus budgets, but also subsidises education for domestic students. A decline in this group could have wide-ranging effects — from budget cuts to reduced research output and limited workforce development, the report said.
Even prior to the halted Harvard policy, universities had been preparing for potential drops in international enrollment. The Trump administration's cuts to federal research funding and strict immigration policies have already made the US a less attractive option for global students.
For American universities, the message is clear: maintaining a robust international student population is not just about global rankings — it's critical to their financial and academic stability.