The landscape of higher education in the United States is undergoing major financial turbulence, with dozens of colleges and universities announcing significant budget cuts. The primary driver of these challenges? A sharp decline in international student enrollment. Policies under the Trump administration, including stricter visa regulations and limits on international admissions, are reshaping how global students view the U.S. as a study destination.
One of the latest institutions to take action is DePaul University in Chicago. Facing a 30% decline in international enrollment this fall, DePaul’s leadership has announced immediate spending reductions. In a memo to faculty, university president Robert Manuel revealed that measures such as a hiring freeze, executive pay cuts, and restrictions on discretionary spending are on the table. The exact scope of these cuts will be determined in the coming weeks.
DePaul University: A Case Study in Declining Enrollment
DePaul, a private Catholic institution with an enrollment of around 21,000 students last year—including about 2,500 international students—has been hit particularly hard. This fall, the school saw 755 fewer students from abroad compared to the previous year. Even more concerning was the dramatic 62% drop in first-year international graduate students.
President Manuel pointed to two main reasons for the decline: students struggling to obtain visas and a noticeable drop in global interest in studying in the U.S., both of which are linked to shifting federal policies. These changes have created a climate of uncertainty that is discouraging students and their families from committing to U.S. institutions.
Nationwide Ripple Effect: Dozens of Schools Announce Cuts
DePaul is not alone. At least 35 other universities have already announced budget reductions linked to declining international enrollment and broader federal policy changes.
- Johns Hopkins University eliminated more than 2,000 jobs in March after the federal government cut $800 million in research grants.
- Northwestern University cut 425 positions, citing financial strain tied to reduced international student numbers and cuts to research funding.
- The University of Southern California (USC) laid off over 630 employees for similar reasons.
These cuts highlight how deeply U.S. universities depend on international students—not only for tuition but also for sustaining robust research programs that attract global talent.
Visa Challenges and Policy Shifts
One of the most disruptive changes has been the tightening of student visa rules. The Trump administration has:
- Revoked some visas outright.
- Delayed visa approvals for incoming students.
- Introduced a new requirement for prospective students to disclose their social media accounts as part of the vetting process.
These hurdles have discouraged many applicants from pursuing U.S. study opportunities. In May, the administration went further by blocking Harvard University from enrolling new international students, alleging the school had failed to address antisemitism and ethnic harassment on campus. Although a U.S. district court temporarily halted the decision, the government has since filed an appeal.
Federal officials have been blunt in their defense of these policies. Tricia McLaughlin, assistant secretary at the Department of Homeland Security, stated:
“Students on visas are guests in this country. If they push propaganda, glorify terrorists, or engage in anti-American actions, they can expect their visas to be revoked.”
This hardline stance has created anxiety for international students and their families, further reducing the appeal of U.S. higher education.
International Students Rethink Their Options
For many students, these policies are prompting them to look elsewhere. In interviews with Reuters, several prospective and current students shared why they decided against studying in the U.S.:
- An Indian student accepted to the University of California, Davis, chose to defer admission due to uncertainty around visa approvals. She explained that her parents feared potential deportation risks if she studied in America.
- A Chinese graduate from Northwestern University turned down a U.S. PhD program in economics in favor of a U.K. university, citing unstable visa rules and uncertain research funding. His professors even encouraged him to consider alternatives outside the U.S.
This shift is not isolated. It reflects a growing trend of students favoring countries like Canada, the U.K., and Australia, which are seen as more welcoming and stable for international learners.
Enrollment Data: Early Numbers Confirm the Decline
During the 2024-2025 academic year, around 1.2 million international students studied in the U.S., according to NAFSA: Association of International Educators. However, NAFSA projected a decline of up to 15% this year, which could cost the U.S. economy nearly $7 billion.
According to preliminary data from the Department of Homeland Security’s Student and Exchange Visitor Program, international student enrollment fell by 2.4% this September compared to the same month last year. That’s a drop from 965,437 to 942,131 students. While these numbers are still in flux, they indicate a troubling trend.
At specific universities, the decline is even sharper:
- University of Illinois Urbana-Champaign: Down 1% overall, with a 22% drop in first-year international graduate students.
- University at Buffalo: Down 19% overall, including a steep 58% decline in first-year international graduate students.
These figures highlight the particular vulnerability of graduate programs, which rely heavily on international enrollment for tuition and research participation.
Why Graduate Enrollment Matters Most
International graduate students play an outsized role in U.S. universities. They:
- Often pay higher tuition fees, particularly for STEM programs.
- Contribute to groundbreaking research projects.
- Provide teaching and research assistance that supports faculty and undergraduates alike.
When international graduate enrollment falls, universities lose two years (or more) of tuition revenue per student. This compounding effect creates long-term financial strain that cannot be easily offset by domestic enrollment.
Dr. Fanta Aw, executive director and CEO of NAFSA, explained:
“When first-year international graduate students choose not to enroll, universities lose not only immediate tuition but also the long-term stability those students provide to research programs and academic communities.”
Financial Impact: Billions at Risk
International students are a critical revenue source because most do not qualify for U.S. federal financial aid. Their full-tuition payments often subsidize scholarships and support services for domestic students. Without them, universities must either cut budgets or raise tuition for American students—both unpopular options.
Adding to the challenge, the Trump administration recently proposed capping international undergraduate enrollment at 15% of a university’s student body. This move could further restrict the number of foreign students admitted, putting even more financial strain on schools.
A White House memo defended the proposal, arguing that universities too dependent on international tuition risk limiting opportunities for American students. However, credit agencies like Moody’s have warned that falling international enrollment poses serious credit risks to institutions reliant on graduate programs with historically high numbers of foreign students.
Moody’s noted:
“Graduate students often pay higher tuition fees. The loss of these students could have a particularly severe impact on revenue streams.”
The Bigger Picture: Academic Freedom and Global Reputation
Beyond finances, the current climate raises questions about academic freedom and the global reputation of U.S. higher education. American universities have long been regarded as leaders in research and innovation, in part because of their ability to attract top talent from around the world.
If international students increasingly bypass the U.S. in favor of other countries, the consequences could include:
- Reduced research output: Fewer graduate students means fewer researchers to support faculty-led projects.
- Declining cultural diversity: International students enrich campus life with global perspectives that prepare all students for a connected world.
- Loss of soft power: The U.S. has historically built goodwill abroad through its international alumni networks. Shrinking these networks could reduce American influence globally.
Conclusion: A Crossroads for U.S. Higher Education
The decline in international student enrollment is more than just a numbers problem. It’s a signal that the U.S. is losing its competitive edge in global education. For decades, international students have chosen the United States as the top destination for academic excellence, research opportunities, and career advancement. But restrictive policies, uncertainty around visas, and political interference are driving many of these students elsewhere.
Universities like DePaul, Johns Hopkins, Northwestern, and USC are already making painful cuts. If these trends continue, many more institutions—especially those heavily dependent on international tuition revenue—will face similar challenges.
The future of U.S. higher education now hangs in the balance. To remain a global leader, policymakers and university leaders must navigate these challenges carefully, balancing national interests with the need to keep American campuses open, diverse, and competitive.
