The Trump administration’s statements and actions aimed at curtailing the number of international students in the US have sent a chill of uncertainty through higher education institutions. These American schools have become more reliant on the higher tuition paid by international students as state and federal support has waned. Now, their financial viability could be shaken. That could have a negative impact on US-born students seeking a college education, and economists and researchers warn that the ripple effects could extend well beyond the lawns of college campuses: A drop-off in international students could reverberate through the US labor market and broader economy in years to come. “The skill premium, as we call it, is very large, which is why highly educated workers earn so much more,” said Michael Lovenheim, a labor economist and professor at Cornell University’s School of Industrial and Labor Relations. International students, he added, “generate not only returns to themselves through higher wages, but they work in sectors that generate economic growth, they start businesses, they work in high-growth areas that generate more productivity and increase [Gross Domestic Product].” And that economic impact, he said, is “positive and large.” During the 2023-24 academic year, 1.1 million international students were credited with supporting 378,175 jobs, half of which were at colleges and universities and the rest being in other sectors such as housing, food service, retail, transportation and insurance, according to NAFSA: Association of International Educators. All told, that amounted to a record-high economic contribution of $43.8 billion, according to the member-based organization. Reducing enrollment or hurting international students’ desire to study in America, he added, will “lessen our economic competitiveness in the medium run and maybe the long run as well, depending on how things play out.” The Trump administration’s efforts to limit international students have already affected the Global Migration Center, an interdisciplinary research center at the University of California, Davis, said center director Giovanni Peri, an economist and UC-Davis professor who has researched the economic impacts of international migration. “The new cohort of students that are coming (from other countries), we’ve already lost a few of them because of the uncertainty of the funding and the visa that we’re providing,” Peri told CNN in an interview. “A couple of people who were from Europe decided to go to England.” And the international students currently conducting research at the center are experiencing hardships as well, he added. “They are really struggling with their funding; they are not traveling internationally. A couple of my students could not go to international conferences in the last couple of months because they were worried they would not have been able to come back” because of worries they’d get stopped at the border, Peri said. The research itself, he added, has become harder with reduced funding. “It took a long time for the US to establish itself as, by far, the strongest university environment in the world,” he said. “But things change, and things can change in a more permanent way.” If international students elect to instead study in Canada, Europe, Australia or other regions, that loss will ultimately damage the US economy, he said. “The rate at which foreign students create firms in the United States after graduation is about four times as large as the rate at which Americans create,” Peri said, citing his research on the topic. “So, there will be fewer companies created. There will be fewer scientists and engineers to fill other companies in the US; there will be less growth of companies, jobs, and lower income in many local economies.” The potential business generation effect already is hampered by immigration restrictions or challenges, Peri noted. In an earlier study, he and his colleagues found that because of immigration and visa restrictions, only 20% of international US Master’s graduates remained in the US and worked for at least two years. There have been legislative proposals to give a green card to students who earn a degree in the US (a policy that Trump publicly supported), Peri said, adding that “not only this has not happened, but we have made several steps in the opposite direction.” “This is now a completely different world, but this idea of students who study in the US should be able, if the company makes an offer, to have a visa had such a consensus that was so broad and so bipartisan,” he said. “Because everybody saw that the US helped these students and this human capital to be created and that some of the benefits could stay in the US if there is an option.” If the Trump administration’s policies and approach toward international students don’t change significantly, these negative consequences could be felt in the broader US economy in two to three years, he added. Not excusing the “brutality” of the Trump administration’s approach, recent events could drive a meaningful debate around the internationalization of the American student body, David Bell, a history professor at Princeton, wrote Tuesday in a New York Times opinion piece. Bell noted that 1.1 million international students enrolled in the 2023-2024 school year — four times the enrollment 45 years ago. “Like many large social changes, this one happened without much conscious planning or debate,” he wrote. “Foreign students kept applying in ever greater numbers, and universities happily admitted them, since non-Americans receive merit- and need-based financial assistance at much lower rates than Americans do. It has taken Donald Trump’s crude and vengeful swipe at Harvard to draw much attention to the subject.” In a follow-up interview with CNN, Bell noted the potential trade-offs with expanding international enrollment: On one hand, universities can serve as engines for future economic growth and further global relationships; on the other hand, universities potentially could fall short when serving homegrown applicants. “The past couple of decades, the trend has been very, very strongly toward a steady increase in the number of international students, and I think it may be worth asking whether we should be continuing with that increase, or should we keep (enrollment) at the current level or even decrease the level of international students slightly,” Bell said. “Not doing anything precipitous, not doing anything brutal as the administration seems to be attempting to do, but simply keeping an eye on the situation and recognizing the trade-offs.”
Trump’s attacks on international student enrollment could ultimately shake the economy
TruthLens AI Suggested Headline:
"Impact of Reduced International Student Enrollment on U.S. Economy and Education Sector"
CNN
8.0
TruthLens AI Summary
The Trump administration's efforts to reduce the influx of international students into the United States have raised significant concerns among higher education institutions, which have increasingly relied on the higher tuition fees these students provide in the wake of declining state and federal support. With 1.1 million international students enrolled during the 2023-2024 academic year, their presence has been linked to a substantial economic contribution of $43.8 billion and the support of over 378,000 jobs across various sectors, including education, housing, and retail. Economists warn that a decline in international student enrollment could not only threaten the financial stability of colleges and universities but also negatively impact U.S.-born students by reducing the resources available for education. Experts like Michael Lovenheim emphasize that international students play a crucial role in fostering economic growth through their participation in high-productivity sectors and entrepreneurship, which ultimately benefits the U.S. economy as a whole. The potential long-term consequences of reducing international student numbers could hinder the nation’s economic competitiveness and innovation, particularly in technology and research-intensive fields.
The uncertainty surrounding immigration policies and funding has already begun to affect the recruitment of international students, as noted by Giovanni Peri, director of the Global Migration Center at UC Davis. He pointed out that prospective students from Europe have chosen to study in other countries like England due to concerns about visa stability and funding opportunities. Furthermore, current international students are facing challenges related to travel and funding, which could impede their research and professional development. The trend of increasing international student enrollment has dramatically transformed the landscape of American higher education over the past few decades, leading to debates about the balance between serving international students and ensuring opportunities for domestic applicants. While some argue for a reevaluation of international enrollment levels, others caution against overly restrictive measures that could undermine the benefits these students bring to the U.S. economy. Without a significant policy shift, the adverse effects on the economy could manifest within the next few years, prompting a need for a thoughtful discussion about the future of international education in the United States.
TruthLens AI Analysis
The article highlights the potential economic repercussions stemming from the Trump administration's stance on international student enrollment in the United States. This issue is not just about education but dives deeper into the broader implications for the economy, labor market, and future competitiveness of the nation.
Economic Dependency on International Students
Higher education institutions in the U.S. have increasingly relied on the financial contributions of international students, particularly as state and federal funding has diminished. The article emphasizes that international students contribute significantly to the economy, supporting over 378,000 jobs and generating an impressive $43.8 billion in economic contributions during the 2023-24 academic year. With this information, the article aims to convey the critical role these students play not only in sustaining academic institutions but also in driving economic growth through various sectors.
Impact on Domestic Students
The potential decline in international student enrollment could adversely affect U.S.-born students seeking higher education opportunities. The article suggests that a reduction in this demographic could lead to a less diverse learning environment and potentially diminish funding for academic programs, which ultimately may impact the quality of education available to domestic students.
Long-term Economic Consequences
Experts quoted in the article warn that the effects of this situation could extend far beyond college campuses. The mention of a "skill premium" indicates that the presence of highly educated workers—many of whom are international students—contributes to higher wages and increased productivity. The article suggests that less enrollment from international students could hinder economic competitiveness in both the medium and long term, posing a risk to broader economic health.
Public Perception and Political Implications
The article seems to aim at raising awareness among the public about the potential negative consequences of anti-international student policies. It seeks to foster a perception that these policies are harmful not just to the education sector but to the economy as a whole. The emphasis on economic contributions may lead to public discontent with policies that appear to undermine these benefits.
Hidden Agendas and Manipulative Aspects
There could be an underlying agenda to frame the conversation around international students in a way that highlights their economic value, potentially overshadowing other discussions about immigration and education reform. The language used in the article, which focuses on economic impacts, might be seen as a way to rally support for more inclusive policies regarding international students.
Comparative Analysis with Other News
When compared to other news reports focusing on immigration and education, this article aligns with a trend of highlighting the economic benefits of diversity in education. It engages with a broader narrative of the importance of international cooperation and cultural exchange in an increasingly globalized world.
Potential Market Impacts
From a financial perspective, any decrease in international student enrollment could impact sectors dependent on their presence, such as housing, retail, and education-related stocks. This could lead to fluctuations in stock prices for companies involved in these sectors, as their revenue may decline with reduced international student populations.
Global Power Dynamics
The article touches on the implications for the U.S.'s standing in global education. As countries like Canada and Australia actively promote their educational systems to international students, the U.S. risks losing its competitive edge in attracting talent, which could have long-term implications for its innovation and economic leadership.
Use of AI in Article Composition
There is a possibility that AI tools have been used in the drafting of this article, especially in structuring the data and presenting statistics. The organization of content and the emphasis on economic metrics could reflect an AI's capability to highlight significant trends and create a compelling narrative. However, without explicit indication from the source, it remains speculative.
In conclusion, while the article presents valid concerns regarding the economic impact of reduced international student enrollment, it may also serve to shape public perception in a manner that aligns with broader educational and immigration reform agendas. The reliance on economic data and expert opinions lends credibility, but the framing could be viewed as manipulatively skewed towards advocating for more favorable policies for international students.