US colleges are grappling with severe financial strain as Trump administration policies have led to a sharp decline in international student enrollment, a critical revenue source. The University of Central Missouri, a public institution with a $65 million endowment, saw half as many new international graduate students this fall compared to last year, despite steady demand. International students, who typically pay full tuition—often $60,000-$80,000 annually—account for nearly 25% of the university’s tuition revenue. “We can’t subsidize domestic students as much without their revenue,” said President Roger Best, as the university cut employee raises and deferred campus upgrades to offset losses.
An Associated Press analysis reveals over 100 colleges, where international students comprise at least 20% of enrollment and endowments are under $250,000 per student, are vulnerable. These include small Christian colleges like Lee University in Tennessee, expecting 50-60 international students this fall, down from 82, and larger institutions like Northeastern and Carnegie Mellon. Lee, which raised tuition 20% over five years due to declining overall enrollment, relies heavily on tuition as its primary revenue, said Roy Y. Chan, director of graduate studies. Some forecasts predict a 30-40% drop in new international enrollment, potentially costing universities billions and impacting the $43 billion annual economic contribution from international students, per NAFSA.
President Trump’s policies, part of a broader push to reshape higher education, include heightened visa scrutiny, deportations of students involved in pro-Palestinian activism, and a weeks-long freeze on new visa appointments due to intensified social media vetting. A June 2025 travel ban targeting 12 countries, including Sudan, further complicates entry. Ahmed Ahmed, a 19-year-old Sudanese freshman at the University of Rochester, nearly missed his semester after being denied boarding in Uganda despite a valid visa. Rochester’s international office secured his entry, but Ahmed noted, “I’m one of the last to make it through,” reflecting widespread anxiety among students.
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The 1.1 million international students in the US last year, primarily from India and China, face growing uncertainty. A May 2025 NAFSA survey reported the lowest interest in US study since COVID-19, with visa delays in China and India exacerbating the issue. Students like Andre Fa’aoso from New Zealand, studying at Yale, are reconsidering their US education due to fears of policy shifts. “My right to study feels like a pawn,” he said. Meanwhile, Asian universities in South Korea and Singapore are capitalizing, offering scholarships and relaxed visa rules to attract students like Jess Concepcion from the Philippines, who opted for South Korea over the US.
Small colleges, with limited financial cushions, face existential threats. Lee University and others are cutting programs and staff, while public universities like Central Missouri struggle to offset losses for in-state students, whose tuition is often a third of international rates, said economist Justin Gest. The decline compounds a projected 13% drop in US high school graduates by 2041, per the Western Interstate Commission for Higher Education, pushing institutions toward closure. Harvard, with over 7,000 international students, faces targeted restrictions, including a blocked visa ban, but public schools like Purdue, with 10,000 international students, are more vulnerable, said economist Dick Startz.
Social media reflects student fears and institutional panic, with posts citing visa denials and deportations. Some colleges are exploring online programs or partnerships with Asian universities to retain students, but the loss of cultural diversity and global talent worries administrators like Cornell’s Wendy Wolford. As Trump’s policies, including a proposed Department of Homeland Security rule to limit foreign student stays, take effect, the US risks losing its edge in global education, with ripple effects on innovation and local economies.
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