Khabarmala Correspondent
The United States, which for years held the record for attracting the highest number of international students in the world, has reportedly lost more than $1 billion in economic revenue and nearly 25,000 jobs due to declining international student enrollment caused by stricter immigration and visa policies, according to a recent study.
Although the United States has long been considered one of the world’s top destinations for higher education, recent years have shown a gradual decline in its appeal among international students. The study attributes this trend to stricter visa policies, rising educational costs, uncertainty surrounding employment opportunities, and increasingly competitive immigration policies offered by other countries.
International students seeking to study at American universities are facing growing challenges. According to the study, stricter student visa procedures, lengthy interview wait times, additional security screenings, and requirements to prove intent to return to their home countries after graduation have discouraged many prospective students. The report states that these factors are now affecting the U.S. economy as well.
Uncertainty surrounding OPT (Optional Practical Training) opportunities and the H-1B employment visa system has also contributed to the decline. Many international students reportedly feel unsure about whether they will be able to secure long-term careers in the United States after graduation. Employers are also said to be increasingly hesitant to hire foreign graduates.
At the same time, higher education in the United States has become among the most expensive in the world. Rising tuition fees, health insurance costs, housing expenses, and daily living costs have made studying in America increasingly difficult for students from middle-class families, the study claims.
Meanwhile, countries such as Canada, United Kingdom, and Australia are attracting more international students by offering student-friendly immigration policies, post-study work opportunities, and clearer pathways to permanent residency.
The report also notes that political polarization within the United States, debates surrounding immigration, and growing social unease have had psychological effects on both international students and their parents. Some students reportedly feel that America has become less welcoming than before.
The decline in international student enrollment has financially impacted many American universities. Since international students often pay full tuition fees, they are considered a major source of revenue for educational institutions. Smaller private colleges are said to be particularly affected.
According to a new economic analysis released by NAFSA and JB International, declining international student enrollment during the 2025 academic year could cost the United States more than $1.1 billion in lost revenue and affect nearly 23,000 jobs. The analysis is reportedly based on studies conducted by various organizations and recent statistics from the U.S. Department of State.
The report states that new international student enrollment in the United States has declined by 17 percent compared to the previous year. Excluding students currently participating in OPT programs, the total number of international students has fallen by 7 percent.
The analysis found significant declines among graduate and non-graduate students. Graduate-level enrollment reportedly dropped by 12 percent, while non-graduate enrollment declined by 16 percent. Since these students contribute heavily to the U.S. economy through tuition payments, housing, living expenses, and dependent family spending, universities and local economies are feeling the direct impact.
On the other hand, the number of students participating in OPT programs increased by 14 percent. However, the analysis suggests that OPT students spend less on campus, reducing direct university revenue.
The report also identifies rising inflation in the United States, stricter visa procedures, and uncertain policies toward international students as major reasons behind the decline.
By state, California is expected to suffer the largest economic loss, estimated at approximately $161.9 million. It is followed by New York with $152.5 million in projected losses, Massachusetts with $92.1 million, and Texas with $64.6 million in estimated economic losses.
NAFSA has urged the U.S. administration to simplify the student visa process, protect OPT rights for F-1 students, and implement more international student-friendly policies. The organization has also called on the U.S. Congress to pass legislation providing green card pathways for foreign students studying STEM fields.
Although the number of students traveling from Nepal to the United States remains significant, Nepali student enrollment has also declined compared to the previous year due to visa denials, pressure to prove financial resources, and uncertainty about future opportunities. As a result, many Nepali students are increasingly choosing alternative destinations such as Canada, Australia, and the United Kingdom.
The report notes that global study destination trends have been shifting over the past two decades, even as the number of international students worldwide has nearly tripled. As immigration and student visa policies tighten in major destinations like the United States, Canada, and Australia, international students — especially from India — are changing their preferences.
According to the “Transitional Report” published by UpGrad, applications to study in the United States have declined by 13 percent compared to previous years. While the United States was once considered the dominant destination for Indian students, its appeal has weakened significantly.
The study further states that Germany has now surpassed both the United States and Canada as the top destination for Indian students. Germany’s share of Indian students reportedly increased from 13.2 percent in 2022 to 32.6 percent in 2024–25.
Meanwhile, Canada has also experienced a major decline. The share of Indian students choosing Canada reportedly dropped from 17.85 percent in 2022 to 9.3 percent in 2024–25.
