If politics starts to hinder the flow of foreign students into American universities, we could be looking at some serious long-term effects on the US economy.
Right now, the US is really tightening its grip on the international student community. The current administration is pulling out all the stops to send a clear message to students from abroad, which includes deporting them, canceling their SEVIS records, and revoking their study visas.
In a recent development, the US has instructed all its embassies and consulates worldwide to stop scheduling student visa interviews.
For foreign students, the atmosphere right now feels anything but welcoming. The ongoing uncertainty surrounding the crackdown on international students might deter some of the brightest minds from choosing to study in America. A decline in the number of international students could spell trouble for the US economy.
In an interview with Bloomberg TV, former Reserve Bank of India Governor Raghuram Rajan expressed concern about how politics is affecting US universities, which in turn impacts the economy. He warned that if politics continues to undermine the flow of international students to American universities, the long-term risks to the US economy could be significant.
Rajan also pointed out that limiting access to international students could hinder job creation, noting that companies like Alphabet Inc.’s Google rely on a diverse talent pool that is often connected to immigration.
The US continues to be the top choice for international students looking to achieve their career aspirations. As the largest host of international students in the world, the United States attracts exceptional talent from across the globe. In 2024, more than 1.1 million international students sought higher education in the US.
International students are drawn to American academic programs because of the high quality of its higher education system, especially in fields like science, technology, engineering, and mathematics (STEM). Students and scholars bring fresh ideas and global viewpoints to colleges and universities across the United States, and these institutions truly benefit from their presence.
Adding Value to the Economy
Over the years, international students have made a significant impact on the U.S. economy. According to NAFSA’s latest analysis, international students studying at U.S. colleges and universities contributed a whopping $43.8 billion and supported 378,175 jobs during the 2023-2024 academic year.
Thanks to U.S. immigration policies, international graduates have the opportunity to work in America after finishing their studies through the Optional Practical Training (OPT) program.
This program not only helps American companies attract talented individuals but also allows students to remain in the U.S. and contribute to the economy.
A key takeaway from NAFSA’s economic research is that for every three international students, one job is created in the U.S. Additionally, the overall spending by international students has seen a notable rise.
In 2024, the economic contributions from international students during their studies increased for the second consecutive year. Their spending reached $2.0 billion, marking a 33 percent increase—almost double last year’s growth—and they supported over 8,400 jobs, which is a 28 percent rise compared to last year’s 8.6 percent increase.
The five states that experienced the most economic activity were California, New York, Massachusetts, Texas, and Illinois, maintaining the same top five as last year. Twelve states surpassed the $1 billion mark, with international student spending in those states accounting for 57 percent of the total contribution to the U.S. economy.
Bringing Talent to America
More than half of the international students who come to the United States are pursuing degrees in STEM fields. They engage in cutting-edge programs and labs, driving innovation in key industries that enhance the U.S.’s status as a leader in science and technology.
Did you know that around 15% of all students are diving into business and management studies? This field is super important for the global banking and finance industries.
A study from the National Academies of Sciences, Engineering, and Medicine back in 2016 highlighted that the future of economic growth in the U.S. could look pretty bleak without the input of highly educated immigrants. These individuals are responsible for creating valuable inventions and boosting productivity.
In fact, 43% of America’s Fortune 500 companies were started by immigrants or their children. Plus, the CEOs of major companies like Microsoft, NVIDIA, and Google all came to the U.S. to pursue their education.
Also Read:
New UK Immigration Rules Expected to Impact Indian Students and Professionals