Amid President Donald Trump’s war on international students, a new report notes that a record 1.1 million of them, including 331,600 from India, contributed $44 billion to the U.S. economy in the 2023-2024 school year.
Their loss could cost U.S. colleges millions in enrollment and billions in economic impact, risking closures and talent loss, says a new report from the National Foundation for American Policy (NFAP).
According to the 2024 Open Doors Report, India displaced China as the top sender of international students to the U.S. for the first time in 15 years with their number rising to an “all-time high” of 331,602 in 2023-24, a 23% increase over 2022-23 when the number stood at 2,68,923.
As domestic enrollment declines and the demographic cliff nears, the NFAP report finds that immigrant-origin students—those who are immigrants themselves or have at least one immigrant parent—are essential to sustaining the nation’s college system, workforce and economy.
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Colleges face enrollment cliff without immigrant-origin students, according to the study “The Importance of Immigrants and International Students to Higher Education in America.”
Immigrant-origin students have driven key enrollment growth since 2010—11% at the undergraduate level and 10% at the graduate level. Without them:
- Undergraduate enrollment would have been lower by 4.6 million students between 2010 and 2022.
- Graduate enrollment would decline by more than 1.1 million by 2037.
“Losing up to one-third of undergraduate enrollment and almost two-fifths of graduate enrollment would be catastrophic for many colleges and universities, especially those in parts of the United States already experiencing demographic declines,” the report states.
In addition to steady enrollment, international and immigrant students contributed nearly $44 billion to the U.S. economy and supported over 378,000 jobs during the 2023-2024 academic year, the report notes.
They were especially vital to STEM fields accounting for:
- N5% of all U.S. bachelor’s degrees
- 13% of master’s degrees (36% in STEM)
- 12% of PhDs (43% to 46% in STEM)
“International students do not crowd out U.S. students and may even increase their numbers,” the report notes. “The higher tuition paid by international students can enable public universities to increase their offerings.”
International students who remain in the country make valuable contributions to the U.S. economy, including spurring entrepreneurship and innovation, according to the report. Master’s programs with more foreign students result in more businesses being created by graduates of those programs.
Higher education is the main entry channel for immigrants who have become entrepreneurs – 75% of immigrants who have founded U.S. companies that received venture capital funding attended a U.S. college or university.
International students are an important source of workers, particularly in the high-tech sector. These students also help boost innovation; each international graduate student is connected to increased patent production and entrepreneurship, the report notes.
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U.S. birthrates have declined steadily since 2007, and the traditional age of college students is expected to shrink 15% between 2025 and 2029. As a result, without immigrant and international students:
- Many institutions may close or downsize.
- Public colleges could lose funding and diversity.
- The U.S. may fall behind global competitors.
The report also warns that fewer high school graduates will further reduce the pool of future college applicants and outlines key strategies for institutions to deal with the situation:
- Strengthen recruitment of immigrant-origin and international students with targeted outreach, financial aid and pathway programs.
- Advocate for pro-immigration policies, including improved visa processing and work authorization.
- Collaborate with employers and community partners to build clear paths from school to career that support enrollment and workforce nee
Immigrant and international students aren’t just keeping American higher education afloat—they are helping to shape its future. As other countries streamline pathways for international students, the U.S. has a strategic opportunity to restore its global edge. Expanding access and support for these students will be key to long-term economic growth, innovation and global competition, the NFAP report suggests.