Tag: Pose

  • Trump student visa policies pose outsized risk to speciality colleges

    Trump student visa policies pose outsized risk to speciality colleges

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    A loss of international students due to restrictive federal policies could disproportionately harm small private colleges that have specialized focuses or are affiliated with Christian churches, according to a recent report from the Brookings Institution

    Many public institutions that charge much higher tuition for international and out-of-state students could also face serious financial hits, said the report’s author, Dick Startz, an economics professor at the University of California, Santa Barbara.

    In his analysis, Startz looked at the common traits of colleges where international students made up at least 30% of enrollment. He found that all of those colleges were private, tended to be small, and have a special focus like business or arts. 

    They were also disproportionately Christian colleges. According to the report, Christian institutions represent 34.3% of colleges and universities where international students comprise more than 30% of total enrollment. 

    “Perhaps the importance of international students to Christian schools should not be so surprising,” the report said. “Many Christian schools are affiliated with evangelical beliefs, spreading their faith globally.”

    Many small private and religious colleges in the U.S. have closed in recent years amid enrollment losses. For such institutions, a sudden loss of 30% of their student population could be a “disaster,” the report warned.

    “The majority of schools will see very little effect,” said Startz. “But there are a small number of schools — private schools that are not very large — and 30% of their budget could disappear. It could be devastating.”

    In June, the U.S. Department of State reopened consular interviews for foreign students looking to apply or renew their student visas after freezing the process the month prior. The State Department, however, now requires those students to unlock their social media accounts so consular officers can review whether they consider their posts hostile to the U.S. or to its culture and founding principles, The Associated Press reported. 

    International students who were previously in the country with active visas are less likely to be affected, said Startz. But first-year students, new graduate students, or some students who need to renew their visas will be impacted, he said. 

    It’s unclear how much those policies will affect international student enrollment or when colleges may start seeing significant impacts, said Startz. But some major colleges and university systems are already beginning to report a major drop in international student enrollment. 

    Over the summer, NASFSA: Association of International Educators projected international enrollment at U.S. colleges could decline by as much as 150,000 students this semester if the federal government did not start ramping up efforts to issue visas. 

    International freshmen enrollment at elite institutions like Princeton University and Columbia University remained steady heading into fall, The New York Times reported. However, other institutions, such as the University at Buffalo, are reportedly experiencing significant declines in international student enrollment, NPR reported. 

    Affecting the economy, affecting colleges

    Volatility in international student levels could affect nearly every college in the country that enrolls foreign students, the Brookings report stated. But not every college — even the ones with large foreign student enrollments — would be affected equally. 

    Colleges such as the University of California, Santa Barbara — where international students make up 9% of enrollment — could face serious financial threats. That’s because those students pay triple the tuition paid by in-state students at UC Santa Barbara, the report stated. 

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  • Drops in International Student Tuition Could Pose Credit Risk

    Drops in International Student Tuition Could Pose Credit Risk

    Photo illustration by Justin Morrison/Inside Higher Ed | skynesher/E+/Getty Images

    Colleges and universities with a high percentage of international students face a credit risk as the federal government continues to target international students, according to a new report from Moody’s Ratings.

    Those most at risk include the 11 percent of American institutions where international students make up more than 20 percent of the student body, the ratings agency said, as well as institutions that are already struggling financially. (In total, 6 percent of students at U.S. institutions come from other countries.)

    “The reduction in international students presents a credit risk for universities heavily reliant on this demographic because of potential declines in tuition income, as international students typically pay full tuition fees,” the report states. “Additionally, with declining numbers of high school students over the next several years in the U.S. leading to fewer domestic students, universities intending to fill the gap with more international students may fall short.”

    The report follows the Trump administration’s months-long attack on immigrants and international students specifically, which began with the sudden removal of thousands of students from the Student Exchange and Visitor Information System, putting their legal status at risk. Since then, the administration has implemented a travel ban that includes 12 countries, prohibiting students from those countries from studying in the United States, and has targeted international students at Harvard University specifically, attempting to end the university’s ability to host international students. The State Department has also increased scrutiny into student visa applicants’ social media presences.

    It’s unclear as of yet how those factors will impact international enrollment in the fall. According to a recent report by the Institute of International Education, an approximately equal number of colleges and universities said they expected their international enrollment in the 2025–26 academic year to increase (32 percent), decrease (35 percent) and stay the same (32 percent) from this year’s numbers. But the percentage who expect a decrease was much higher than last year, when only 17 percent of institutions thought they might lose international students.

    The hit to the sector may not be as significant as it would be in countries like the United Kingdom and Australia, where about 25 percent of all students are international, Moody’s reported. Still, if the U.S. lost 15 percent of its international student population, a substantial number of colleges could experience at least moderate financial repercussions, according to one projection.

    About one in five colleges’ and universities’ EBIDA (earnings before interest, depreciation and amortization) margins would shrink by 0.5 to two percentage points, according to the ratings agency’s calculations.

    “For entities that already are under fiscal stress and have low EBIDA margins (the median EBIDA for private nonprofit colleges and universities was 11.7 percent in fiscal 2024 and 10.7 percent for publics), a change of one or two percentage points could push them into negative territory, especially if they are heavily discounting domestic tuition or losing enrollment because of demographic shifts,” according to the report. “Also, many small private schools may need to contend with federal changes to student loan and aid programs, further depressing domestic enrollment prospects and stressing budgets, especially for those with low liquidity.”

    The report stresses that this model does not account for any steps the institutions might take to mitigate those losses—especially at wealthier institutions. (Fifty-four percent of institutions with at least 15 percent international students are highly selective, while 25 percent are nonselective.)

    “Institutions that are highly selective, or those with considerable reserves, may better absorb the impacts by adjusting operations or increasing domestic enrollment,” it states. “Some elite institutions are less reliant on tuition, deriving income from endowments, fundraising or research, thereby mitigating the financial impact.”

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