International Enrollment Decline Strains U.S. University Budgets

Harrison Keller faced a significant challenge early in his presidency at the University of North Texas. Enrollment numbers had dropped, exacerbated by the Trump administration’s visa restrictions and deportations of international students. This led to 2,800 expected international students staying away.

These full-tuition-paying international students, particularly graduate students contributing $20,000 to $25,000 each, are essential for the university’s finances. Their absence forced UNT into a $45 million deficit, leading to the elimination of 71 academic programs.

The ongoing decrease in international student enrollment threatens to further impact the budget by another projected $47 million, although Keller anticipates a $25 million loss due to spending cuts. New statistics show a 5% drop in student arrivals in March, 8% in April, and 1% in May, following a 22% decrease last summer.

Economist Dick Startz highlights the financial gap left by international students, who subsidize domestic students. Many families do not realize the critical financial role these students play, according to Arizona State’s Domenico Ferraro.

Research shows international students make up 6% of enrollment but contribute 12% of university revenue, with some institutions even more dependent. The loss of these students is causing financial strain, leading to program cuts, layoffs, and tuition increases.

Northwestern University has already eliminated 425 positions due to projected drops in international enrollment. USC and DePaul University have similarly faced layoffs and budget cuts, attributing part of the financial strain to declining international numbers.

Institutions like the University of Michigan and Boston University also cite international enrollment declines as factors in their financial challenges, resulting in layoffs and increased tuition.

Despite the financial pressures, some universities are unable to raise tuition due to public sentiment questioning the value of a four-year degree. As a result, they resort to cutting programs and staff.

The strategy of recruiting international students was partly in response to declining domestic enrollment. However, competition from other countries and U.S. policy changes have reduced the influx of these students.

Canada’s experience illustrates the impact of striking a balance between international student numbers and domestic funding. As international student numbers plummet, Canadian universities face significant financial losses.

In the U.S., without compensating for the decline in international students, higher education institutions risk facing severe financial challenges and empty classrooms.

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