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Washington Post
6 days ago
- Business
- Washington Post
Here's how much international students contribute to the U.S. economy
As the Trump administration pauses new student visas in its battle to force change at the nation's elite universities, economists warn that the loss of international students would affect not just the schools that depend on their tuition but local and state economies, as well. The more than 1.1 million international students who studied in the United States last year contributed nearly $44 billion to the U.S. economy during the 2023-2024 school year, according to the nonpartisan think tank National Foundation for American Policy — from $10 million in Alaska to more than $6 billion in California — and supported more than 378,000 jobs. 'Students don't just spend money paying tuition fees,' Nicholas Barr, a professor at the London School of Economics, said in an interview. 'They pay rent, they go to restaurants, they travel.' States with high concentrations of universities in particular benefited from the economic impact of international students. 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, according to NAFSA, the Association of International Educators. The 82,000 international students who studied in Massachusetts contributed an estimated $3.9 billion, while California, the state with the most international students, had nearly 141,000 international students contributing $6.4 billion. The economic demands of international students leads to the creation of jobs, Barr said, whether it's extra staffing at local bars and shops or at the university itself, with extra personnel needed to handle the logistics of having more students. A pause on student visas could have 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 markets are 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. He predicted universities might have to cut back on course offerings or financial aid. The long-term effects of fewer international students are not as easily measurable, Yannelis said. He grew up near the University of Illinois at Urbana-Champaign, hearing about the success story of one of the school's most famous alumni: Shahid Khan, a businessman and owner of the Jacksonville Jaguars. Khan attended the University of Illinois as an international student from Pakistan before going on to develop a more economical way to manufacture single-piece car bumpers with his start-up, BumperWorks, and taking over the auto manufacturing company Flex-N-Gate. He kept his businesses in the area, Yannelis said, creating many jobs and opportunities for locals. 'I'm worried about the long-term consequences,' he said. 'A huge portion of American entrepreneurs are international, and many of them started their careers as students in the U.S.' Although the visa pause is temporary while the State Department weighs expanded guidelines for screening applicants' social media accounts, and other Trump administration efforts have been challenged in court — a federal judge temporarily blocked a ban on Harvard University's ability to enroll international students — the 'damage is already done,' Yannelis said. 'Even if all of these policies are reversed next week, we'd still have this cloud lingering over us because we've created an uncertainty around the U.S. being a top place for worthy talent.' Barr was himself an international student, earning his doctorate in economics at the University of California at Berkeley as a Fulbright scholar. 'I don't think I would apply now because of the uncertainty,' he said, adding that he was sad for both the universities and the prospective students who will not be allowed to enjoy the same experiences he did. 'America is shooting itself in the foot big time,' Barr said.
Time of India
25-05-2025
- Business
- Time of India
America's colleges face a looming crisis: The vital role of international students
This is an AI-generated image, used for representational purposes only. American higher education is heading for a significant challenge, facing a 'demographic cliff' that could drastically shrink student populations, warns a new policy brief from the National Foundation for American Policy (NFAP). Without the crucial contributions of immigrants and their children, as well as international students, both undergraduate and graduate student numbers could plummet in the coming years, potentially leading to widespread college closures and fewer opportunities for all students. The report, authored by Madeline Zavodny, a Research Fellow at NFAP and Professor of Economics, highlights that the number of US-born traditional college-age young adults is expected to drop sharply starting in 2025 due to declining birth rates after 2007. Projections show a potential 15% fall in this demographic between 2025 and 2029 alone. A shrinking student body? The NFAP analysis projects that by 2037, without immigrant-origin students, the undergraduate population in the US could be nearly 5 million smaller than in 2022, shrinking to about two-thirds of its current size. Graduate student numbers could face an even steeper decline, becoming at least 1.1 million smaller, or only about 60% of their current size. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng với sàn môi giới tin cậy IC Markets Đăng ký Undo Such dramatic drops would be 'catastrophic' for many institutions, especially those in regions already experiencing population declines. "Losing up to one-third of undergraduate enrolment and almost two-fifths of graduate enrolment would be catastrophic for many colleges and universities," states the analysis. This could result in fewer educational opportunities for US students, a reduction in higher education-related jobs, and a smaller pool of college-educated workers in the nation. International students: A financial lifeline and innovation driver International students play a vital role, not just in filling seats but also in providing substantial financial support to universities. In 2023-24 alone, international students contributed almost $44 billion to the US economy and supported over 378,000 jobs. Many public universities, facing cuts in state funding, have increasingly relied on international students' higher out-of-state tuition fees to maintain their programs and even reduce tuition for in-state students. The report also dispels the myth that international students 'crowd out' American students. In fact, research suggests the opposite: higher tuition paid by international students allows public universities to expand their offerings, potentially increasing the number of US students they can enrol. For example, for every additional international undergraduate student at a public university, in-state freshman enrollment increases by two, on average. Furthermore, international students are crucial for innovation and entrepreneurship. Master's programs with more foreign students tend to lead to more businesses being created by graduates. They also boost US innovation through patents and publications, especially in STEM fields. Immigrants who attended a U.S. college or university account for 75% of those who founded US companies receiving venture capital funding. Changing demographics and future outlook The share of immigrant-origin students (first and second-generation immigrants) in US higher education has been steadily rising. In 2022, first-generation immigrants made up 11% of undergraduate students, and second-generation immigrants accounted for 24%. This growth in immigrant-origin students has been critical in offsetting declines in the number of third-plus generation US-born students. While international student enrolment rebounded after a dip during the first Trump administration and the pandemic, it remains slightly below its 2016-17 peak. The report warns that another reduction in international students could severely impact many US higher education institutions, jeopardising academic programs and employment in local economies. With some other English-speaking countries now looking to reduce their international student numbers, the US has a "strategic opening" to attract more. This, combined with post-graduation work opportunities like Optional Practical Training (OPT), could ensure a stronger US-educated workforce, particularly in critical STEM fields that drive economic growth and innovation. The message is clear: the future health and vitality of American higher education, and by extension, the U.S. economy and workforce, are increasingly tied to the continued presence and contributions of immigrants and international students, concludes the NFAP analysis.
Yahoo
23-05-2025
- Politics
- Yahoo
Forecasted foreign student drop catastrophic for US colleges: Study
Enrollment numbers at American colleges and universities will drop by 5 million by 2037 if international and immigrant students are not factored into the equation, which will dramatically affect the bottom line of institutions of higher education, a new study suggests. The study, released by the National Foundation for American Policy, determined that the number of undergraduates would be about two-thirds of its current size if its calculations involving international students are correct. Meanwhile, the number of graduate students would also plummet by 1.1 million students, which, coupled with undergraduate decreases, would be 'catastrophic' for many universities, an economist who researched the study determined. Madeline Zavodny, a professor of economics at the University of North Florida, conducted the study this year before the Trump administration began targeting U.S. universities for diversity, equity and inclusion (DEI) programs and other practices that do not align with its mission. The administration has announced cuts of federal grant funding from institutions like Harvard and Columbia. On Thursday, President Trump blocked Harvard's ability to enroll international students for alleged violent and antisemitic practices. Students, faculty and members of the Harvard University community rally, Thursday, April 17, 2025, in Cambridge, Mass. (AP Photo) Meanwhile, international students at several universities have had their student visas revoked and have been taken into custody by federal immigration agents for a variety of allegations and earmarked for deportation. Although universities saw a slight drop in their international and immigrant student population during Trump's first term in the White House, those declines represent a 'drop in the bucket' compared to what is expected to come, Zavodny told NewsNation. 'It's a very abrupt, shocking change,' she said. Data released by Best Colleges indicated that during the 2024-25 academic year, 19.1 million students were enrolled in U.S. colleges, including 16 million undergraduates. However, who makes up those numbers has shifted due to the ongoing decline in the U.S. birth rate and the decision by more American students not to attend college. Based on those trends, U.S.-born students between 18 and 22 attending American colleges could fall by as much as 15 percent between now and 2029, the study shows. The bigger and unexpected surprise in declining college enrollments does not involve Americans. The Institute of International Education reports that 880,000 international students were enrolled at American colleges and universities during the 2023-24 academic year. That total represents an increase of 230,000 students (36 percent) from 2010-11. Meanwhile, second-generation immigrants, those students who were born in the U.S. to immigrant parents, rose from 15 percent to 24 percent over the same period. Students march at Arizona State University in protest of ASU's chapter of College Republicans United-led event encouraging students to report 'their criminal classmates to ICE for deportations', Jan. 31, 2025, in Tempe, Ariz. (AP Photo/Ross D. Franklin, File) In 2023, the largest percentage of international students came from India, which accounts for 30 percent of international students at American universities. Another 25 percent of international students come from China, far outpacing international students from Latin American, Middle Eastern or European countries. Although the COVID-19 pandemic kept international students from coming to the U.S., numbers have recovered over the past few years, again fueling student enrollment numbers. Because international and immigrant students tend to pay full tuition, fees and room and board, the dependence on those students not only to fill seats in classrooms but to allow universities to meet their bottom line financially has remained necessary, Zavodny said. The Association of International Educators reported that international students studying at U.S. schools contributed $43.8 billion to the U.S. economy during the 2023-24 academic year and supported more than 378,000 jobs. US Citizenship and Immigration Services (USCIS) Deputy Director for Policy Joseph Edlow (R), with Secretary of State Mike Pompeo, administers the Oath of Allegiance to twelve candidates for US citizenship during a naturalization ceremony hosted by the USCIS at the State Department in 2020. (Photo by MANUEL BALCE CENETA/POOL/AFP via Getty Images) Yet given the fire that both universities and international students have come under since Trump took office, Zavodny predicts that both enrollment and the financial outlook of U.S. colleges could take significant hits. On Wednesday, Joseph Edlow, the Trump administration's pick to lead the U.S. Citizenship and Immigration Services, testified before a congressional committee that he favors removing Optional Practical Training programs that assist international students in obtaining work authorizations once they finish their education. Current OPT programs provide students with hope for a future of successful careers and residency in the U.S., Zavodny said, adding to the allure of coming to the U.S. on a student visa to study. Should these programs cease to exist, however, Zavodny believes the impact on schools' ability to thrive financially, or in the cases of smaller colleges, to survive, will almost certainly change. In addition, Trump's pledge to end birthright citizenship and to completely close the U.S. southern border could also factor into expected enrollment drops at colleges and universities across the board as international students reconsider their educational future. 'It must be terrifying to think that you could spend this money (to attend college in the U.S.) and that you could be deported without your degree, you could be put in jail for a long time,' Zavodny said. In addition to the expected base enrollment decreases, the study also found that if international students were no longer coming to the U.S., total undergraduate student enrollment would fall by 2 percent over the next 12 years. Under the same scenario, the graduate-level student population would drop 11 percent. Those figures will increase by another 1 or 2 percent if the immigrant inflow were to stop as Trump continues to completely seal the U.S. southern border. Additionally, if immigrants currently living in the U.S left the country, the undergraduate student population would fall by another 6.6%, and the graduate-level student population could fall by 12 percent, the study found. If U.S.-born students who are the children of immigrants elected not to attend an American institution, undergraduate student levels would see a 23 percent drop and graduate-level student populations would fall by 16 percent by 2037. With the decline in international students expected to last for more than a decade and beyond when Trump leaves office, Zavodny said colleges and universities may need to adjust their enrollment practices and admit students they may not have even a decade ago. If they do not, based on current trends and the time it may take for international student populations to rebound, the long-term impact for these institutions could be bleak, Zavodny said. 'It's going to be big and it's going to be adverse for a whole lot of schools,' she added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
23-05-2025
- Politics
- Yahoo
Farmers Need Free Markets, Not Tariffs and Welfare
If you want to, say, make juice from an orange, the typical way is to mash the orange on a simple squeezer. But the early-to-mid 20th-century cartoonist, Rube Goldberg, had an even better way. His "simple" juice-making contraption involved pulling a string, which releases a guillotine blade, which cuts a cord that engages a battering ram that then enrages a sleeping octopus, which attacks the dangling orange and squeezes out its juice. Goldberg's bizarre cartoon machines were hilarious and have for decades inspired students to create their own real-world variety. One website notes that dictionaries in 1931 turned his name into an adjective that means "accomplishing by complex means what seemingly could be done simply." I've always enjoyed perusing them because they remind me of the world's unnecessarily complicated systems—and see them as analogous to how our governments operate. Let's take the issue of farming. The simplest way to provide food for the population is to, you know, let farmers grow what they want to grow, sell their products to whomever they choose, export them in response to demand, and so forth. The more important the product—and food certainly ranks high on any list—the better it is to allow markets to work. Instead, our government micromanages the situation with complex regulations and subsidies that distort the market, raise prices, and pick winners and losers. Farm policy has been a mess for decades, with both parties to blame. Every politician (and voter) loves farmers, who are perfect fodder for gauzy backdrops of real Americans nurturing the land, flying the flag, and epitomizing everything good and wholesome about the nation. The early Iowa caucuses reinforce this dynamic. Farming is a tough and risky business, but it is, in fact, mostly a business. Creating a mythology about it only makes it harder for lawmakers to address farm policy in a sensible manner that benefits everyone. Farming has been in the news lately, as the Trump administration talks incessantly about imposing massive new tariffs on agricultural products. It's also intent on deporting a large portion of those farms' labor pool. Last month, Trump assured farmers that he would protect them from any negative effects of his on-again, off-again trade war with China—not a surprise given federal taxpayers typically provide massive subsidies to farmers. "The Trump administration provided more taxpayer dollars to farmers financially damaged by the administration's trade policies than the federal government spends each year building ships for the Navy or maintaining America's nuclear arsenal," according to a 2020 study from the National Foundation for American Policy. "The amount of money raises questions about the strategy of imposing tariffs and permitting the use of taxpayer money to shield policymakers from the consequences of their actions." What a crazy policy contraption. Basically, the feds impose damaging new taxes and trade restrictions on farmers for reasons mostly related to ideology and rent-seeking, then undo their effects by making farmers more dependent on government largesse. Often lost in the discussion, but one reason that U.S. farmers are so dependent on selling commodity crops to China and elsewhere is that past policies essentially subsidized them to do so. Like with all things political, various federal farm policies have created a series of odd bedfellows. Many environmental groups have lauded past farm bills because they provide incentives for farmers to set aside land as open space, but overall the federal meddling has harmed the environment. For instance, federal sugar subsidies have greatly diminished the Florida Everglades by encouraging the conversion of wetlands into sugar fields. As is typical, federal subsidies end up benefiting the biggest players. Overall farm incomes remain above average, but politically savvy agriculture lobbies cry poormouth to boost their handouts. In 2023, market-oriented groups opposed congressional efforts to boost those subsidies by noting: "Increasing price guarantees for covered commodities would only boost federal payments to the largest and most successful farmers, who already received almost 66 percent of all commodity subsidies in 2021." All these policies drive up food prices for non-farmers and reduce our choices in meats and produce. As Chris Edwards of the Cato Institute explained in 2022, if the feds deregulated, "Different crops would be planted, land usage would change, and some farm businesses would contract while others would expand. But a stronger and more innovative industry would emerge that had greater resilience to market fluctuations. Private insurance, other financial tools, and diversification would help cover risks, as they do in other industries." Instead of creating this convoluted, counterproductive policy that mimics a Rube Goldberg farce, the government should do the basics to help farmers. It should scuttle tariffs, halt subsidies, eliminate costly shipping levies, create a guest-worker program so farmers can have a consistent labor source, lower taxes, bolster water infrastructure and let markets do the rest. There's no reason to use an octopus to make orange juice. This column was first published in The Orange County Register. The post Farmers Need Free Markets, Not Tariffs and Welfare appeared first on
The Hill
23-05-2025
- Politics
- The Hill
Forecasted foreign student drop catastrophic for US colleges: Study
Enrollment numbers at American colleges and universities will drop by 5 million by 2037 if international and immigrant students are not factored into the equation, which will dramatically affect the bottom line of institutions of higher education, a new study suggests. The study, released by the National Foundation for American Policy, determined that the number of undergraduates would be about two-thirds of its current size if its calculations involving international students are correct. Meanwhile, the number of graduate students would also plummet by 1.1 million students, which, coupled with undergraduate decreases, would be 'catastrophic' for many universities, an economist who researched the study determined. Madeline Zavodny, a professor of economics at the University of North Florida, conducted the study this year before the Trump administration began targeting U.S. universities for diversity, equity and inclusion (DEI) programs and other practices that do not align with its mission. The administration has announced cuts of federal grant funding from institutions like Harvard and Columbia. On Thursday, President Trump blocked Harvard's ability to enroll international students for alleged violent and antisemitic practices. Students, faculty and members of the Harvard University community rally, Thursday, April 17, 2025, in Cambridge, Mass. (AP Photo) Meanwhile, international students at several universities have had their student visas revoked and have been taken into custody by federal immigration agents for a variety of allegations and earmarked for deportation. Although universities saw a slight drop in their international and immigrant student population during Trump's first term in the White House, those declines represent a 'drop in the bucket' compared to what is expected to come, Zavodny told NewsNation. 'It's a very abrupt, shocking change,' she said. Data released by Best Colleges indicated that during the 2024-25 academic year, 19.1 million students were enrolled in U.S. colleges, including 16 million undergraduates. However, who makes up those numbers has shifted due to the ongoing decline in the U.S. birth rate and the decision by more American students not to attend college. Based on those trends, U.S.-born students between 18 and 22 attending American colleges could fall by as much as 15 percent between now and 2029, the study shows. The bigger and unexpected surprise in declining college enrollments does not involve Americans. The Institute of International Education reports that 880,000 international students were enrolled at American colleges and universities during the 2023-24 academic year. That total represents an increase of 230,000 students (36 percent) from 2010-11. Meanwhile, second-generation immigrants, those students who were born in the U.S. to immigrant parents, rose from 15 percent to 24 percent over the same period. Students march at Arizona State University in protest of ASU's chapter of College Republicans United-led event encouraging students to report 'their criminal classmates to ICE for deportations', Jan. 31, 2025, in Tempe, Ariz. (AP Photo/Ross D. Franklin, File) In 2023, the largest percentage of international students came from India, which accounts for 30 percent of international students at American universities. Another 25 percent of international students come from China, far outpacing international students from Latin American, Middle Eastern or European countries. Although the COVID-19 pandemic kept international students from coming to the U.S., numbers have recovered over the past few years, again fueling student enrollment numbers. Because international and immigrant students tend to pay full tuition, fees and room and board, the dependence on those students not only to fill seats in classrooms but to allow universities to meet their bottom line financially has remained necessary, Zavodny said. The Association of International Educators reported that international students studying at U.S. schools contributed $43.8 billion to the U.S. economy during the 2023-24 academic year and supported more than 378,000 jobs. US Citizenship and Immigration Services (USCIS) Deputy Director for Policy Joseph Edlow (R), with Secretary of State Mike Pompeo, administers the Oath of Allegiance to twelve candidates for US citizenship during a naturalization ceremony hosted by the USCIS at the State Department in 2020. (Photo by MANUEL BALCE CENETA/POOL/AFP via Getty Images) Yet given the fire that both universities and international students have come under since Trump took office, Zavodny predicts that both enrollment and the financial outlook of U.S. colleges could take significant hits. On Wednesday, Joseph Edlow, the Trump administration's pick to lead the U.S. Citizenship and Immigration Services, testified before a congressional committee that he favors removing Optional Practical Training programs that assist international students in obtaining work authorizations once they finish their education. Current OPT programs provide students with hope for a future of successful careers and residency in the U.S., Zavodny said, adding to the allure of coming to the U.S. on a student visa to study. Should these programs cease to exist, however, Zavodny believes the impact on schools' ability to thrive financially, or in the cases of smaller colleges, to survive, will almost certainly change. In addition, Trump's pledge to end birthright citizenship and to completely close the U.S. southern border could also factor into expected enrollment drops at colleges and universities across the board as international students reconsider their educational future. 'It must be terrifying to think that you could spend this money (to attend college in the U.S.) and that you could be deported without your degree, you could be put in jail for a long time,' Zavodny said. In addition to the expected base enrollment decreases, the study also found that if international students were no longer coming to the U.S., total undergraduate student enrollment would fall by 2 percent over the next 12 years. Under the same scenario, the graduate-level student population would drop 11 percent. Those figures will increase by another 1 or 2 percent if the immigrant inflow were to stop as Trump continues to completely seal the U.S. southern border. Additionally, if immigrants currently living in the U.S left the country, the undergraduate student population would fall by another 6.6%, and the graduate-level student population could fall by 12 percent, the study found. If U.S.-born students who are the children of immigrants elected not to attend an American institution, undergraduate student levels would see a 23 percent drop and graduate-level student populations would fall by 16 percent by 2037. With the decline in international students expected to last for more than a decade and beyond when Trump leaves office, Zavodny said colleges and universities may need to adjust their enrollment practices and admit students they may not have even a decade ago. If they do not, based on current trends and the time it may take for international student populations to rebound, the long-term impact for these institutions could be bleak, Zavodny said. 'It's going to be big and it's going to be adverse for a whole lot of schools,' she added.
