US Faces $7 Billion Hit Due to Drop in International Students
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The United States is poised to suffer a staggering $7 billion economic loss this year as visa appointment delays and policy restrictions continue to deter international students, new analysis reveals.
The projection, derived from SEVIS and State Department data by NAFSA and JB International, predicts a 30–40% decline in new international student enrolments this autumn. The downturn could result in over 60,000 lost jobs and severe revenue hits for US cities and universities that depend on student spending.
“This is the first analysis to quantify the economic blow of losing international students at the local level. It must serve as a wake-up call to the State Department,” said Fanta Aw, CEO of NAFSA.
The crisis stems largely from the US State Department’s recent freeze on visa interviews between 27 May and 18 June, which disrupted global embassy operations. Despite announcements about expedited processing, embassies in countries like India, China, Nigeria and Japan are still reporting a shortage of appointments.
Given that India and China alone accounted for 54% of international student enrolments last year and that Nigeria and Japan rank seventh and thirteenth respectively, the impact is expected to be catastrophic. Students from these countries are now abandoning plans to study in the US, with the fall semester fast approaching.
F-1 visa issuances already fell 12% between January and April 2025, with a further 22% drop in May compared to the previous year. Analysts fear an 80–90% dip in June, the peak period for student visa approvals.
Adding to the strain are the Trump administration’s visa restrictions affecting 19 countries, with more potentially on the list. These measures alone could cost the US $3 billion in annual contributions and over 25,000 jobs.
NAFSA has urgently appealed to the US State Department to expedite visa processing and exempt F, M, and J category students from ongoing travel bans.
With international student contributions peaking at $46 billion last year, the anticipated drop could trigger a 15% overall enrolment decline, jeopardising America’s educational and economic standing in the global arena.
Source: THE PIE NEWS
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