New Study: US Colleges Face $7B Annual Loss as International Students' Interest Wanes
A new study reveals a significant shift in international students' interest in US colleges. Only 53% remain committed to enrolling, with 9% now favoring local institutions. This trend could cost the US up to $7 billion annually.
Pioneer Academics' study from May to July 2025 found that 3% of students have decided against US colleges, 3% are undecided, and 29% plan to apply but with less intent to enroll. Key reasons include international tensions (54%), political instability (45%), and personal safety (31%).
The decline is also driven by practical issues. 26% of students seek clearer communication about financial aid and long-term value. The number of F-1 visa arrivals dropped by nearly 30% in July 2025, with significant decreases among Indian and Chinese students. Halts and delays in uscis appointments, and a broader anti-immigration tone, have also contributed to the decline.
Several US universities, including the University of North Carolina system, have faced closures or mergers due to enrollment drops since 2020, affecting over 50,000 students. These institutions are now implementing measures like financial sustainability plans and targeted outreach to regain appeal.
Despite the challenges, the US still leads in student satisfaction with a score of 4.32 stars out of 5. However, the decline in international student numbers, driven by both geopolitical and practical concerns, requires urgent attention. Universities and policymakers must address these issues to reverse the trend and maintain the US's position as a global leader in higher education.
