This summer, numerous international students informed the University of Central Missouri that they were unable to secure a visa, with many struggling just to secure an interview for one. As a result of these challenges, only half the number of new international graduate students arrived for fall classes compared to the previous year. This decline has significant financial implications for Central Missouri, a small public university operating with a modest endowment of $65 million. International students typically contribute nearly 25% of the university's tuition revenue.
Roger Best, the university's president, noted, “We aren’t able to subsidize domestic students as much when we have fewer international students who are bringing revenue to us.” The University of Central Missouri is not alone; a broader trend of declining international student enrollment has unsettled colleges across the United States. Institutions with a higher proportion of foreign students and lower endowments face financial vulnerability due to reduced tuition income.
According to an Associated Press analysis, international students account for at least 20% of enrollment at over 100 colleges with endowments under $250,000 per student. While many of these institutions are small Christian colleges, the list also includes major universities like Northeastern and Carnegie Mellon. Predictions suggest that the decrease in international student enrollment could be as high as 40%, creating further financial challenges for these schools and impacting the broader U.S. economy.
Under the Trump administration, policies aimed at reshaping higher education have introduced increased scrutiny of international students. President Trump has urged colleges to limit foreign student enrollment and has increased the vetting of student visa applicants, including reviewing their social media. The Department of Homeland Security is now proposing new rules to limit the time foreign students can stay in the U.S., exacerbating the financial uncertainty for colleges, according to Justin Gest, a professor at George Mason University.
International students often do not qualify for federal financial aid, and they typically pay full-price tuition, which can be double or triple the rate charged to domestic students. As Gest explained, the presence of international students paying significant tuition fees allows universities to offer more financial assistance to American students.
A notable example is Ahmed Ahmed, a Sudanese student who nearly did not make it to the U.S. to begin his freshman year at the University of Rochester. Following a June travel ban announced by the Trump administration that affected 12 countries, including Sudan, Ahmed faced significant travel complications despite having a valid visa. With assistance from the University of Rochester's international office, he managed to secure a flight, though he expressed concern about the potential scrutiny faced by other international students.
In response to declining international enrollment, the University of Central Missouri has taken measures to mitigate the financial impact. Historically, international students have made up approximately 30% of the university's total enrollment of around 12,800 students. The institution has already cut cost-of-living raises for employees, delayed campus infrastructure improvements, and explored further cost-cutting options.
Similarly, Lee University, a Christian institution in Tennessee with 3,500 students, anticipates a drop in international student enrollment from 82 to 50-60, significantly affecting its revenue. The university has already raised tuition by 20% over the past five years to address decreases in overall enrollment.
These challenges compound the existing difficulties faced by many colleges in the U.S., which are grappling with declining domestic enrollment due to shifting demographics and the ongoing effects of the COVID-19 pandemic. The closure of private colleges has accelerated, with an estimated two institutions shutting down each month, according to the State Higher Education Executive Officers Association.
The U.S. is also expected to see a 13% drop in the number of high school graduates by 2041, further complicating the landscape for higher education institutions. According to Dick Startz, an economics professor at the University of California, Santa Barbara, the loss of international students will exacerbate these existing challenges threatening the financial stability of many colleges.
