Colleges Struggle Financially as Trump-Era Policies Drive Sharp Decline in International Enrollment

Universities across the United States are grappling with significant financial challenges as international student enrollment plunges, largely due to stricter immigration policies implemented during the Trump administration.

At the University of Central Missouri, officials reported that numerous international students were unable to secure visas this summer, with many struggling even to get an interview. As a result, the number of new international graduate students for the fall semester has dropped by nearly 50% compared to last year, despite continued strong demand.

For Central Missouri—a small public institution with an endowment of just $65 million—this decline is especially concerning. International students typically account for nearly 25% of its tuition revenue, a critical source of funding that supports both operations and subsidies for domestic students.

“We aren’t able to subsidize domestic students as much when we have fewer international students who are bringing revenue to us,” said Roger Best, president of the university.

National Impact and Financial Fallout

The downturn in international enrollment is affecting colleges nationwide, particularly those with limited endowments and a heavy reliance on tuition revenue. According to an Associated Press analysis, over 100 institutions have international students representing at least 20% of their enrollment, while holding endowments of less than $250,000 per student. Many are small Christian colleges, though the list also includes large universities such as Northeastern and Carnegie Mellon.

Early forecasts predict declines as steep as 40%, which could have profound implications for university budgets and the broader U.S. economy.

Stricter Visa Rules and Added Scrutiny

The Trump administration has implemented policies aimed at reducing the number of international students in the U.S. These include heightened visa scrutiny, temporary suspension of new visa appointments, and plans to limit the duration of student stays. The Department of Homeland Security recently announced a proposed rule imposing new restrictions on the length of time foreign students can remain in the country.

Analysts note the financial consequences of these policies are severe. International students, who do not qualify for federal financial aid, often pay full tuition—sometimes two or three times the rate charged to in-state students.

“An international student paying $80,000 a year allows universities to keep tuition lower for domestic students and fund scholarships,” said Justin Gest, an immigration policy expert at George Mason University.

Personal Struggles: One Student’s Story

Ahmed Ahmed, a freshman from Sudan at the University of Rochester, nearly missed the start of classes after facing travel restrictions. Following the administration’s travel ban on 12 countries, including Sudan, Ahmed was initially barred from boarding a flight despite holding a valid visa. With assistance from Rochester’s international office, he was eventually able to reach campus.

“I feel like I made it through, but I’m one of the last people to make it through,” said Ahmed, who received a scholarship to study electrical engineering.

Universities Seek Solutions Amid Growing Pressures

To offset anticipated losses, the University of Central Missouri has frozen cost-of-living raises for employees and delayed infrastructure projects. Smaller institutions are especially vulnerable, lacking the financial reserves to absorb such shocks.

Lee University in Tennessee, for example, expects only 50 to 60 international students this fall—down from 82 last year—representing a significant hit to revenue. The university has already increased tuition by 20% over the past five years to compensate for declining enrollment, according to Roy Y. Chan, director of graduate studies.

“This is our main revenue source,” Chan said, noting that unlike large universities, small liberal arts colleges rely almost entirely on tuition rather than government funding or large donations.

The situation adds to existing pressures on higher education institutions facing a steady decline in domestic enrollment due to demographic shifts and the lasting impact of the pandemic. Private colleges in particular have been closing at a rate of about two per month, according to the State Higher Education Executive Officers Association. Projections suggest that by 2041, the number of U.S. high school graduates will drop by 13% compared to 2024, compounding the challenge.

“That means if you lose participation from international students, it’s even worse,” said Dick Startz, an economics professor at the University of California, Santa Barbara.