Scare Tactics will lead to Economic Self-Sabotage

The Boom Before the Bust

In the 2023–2024 academic year, international students contributed an estimated $43.8 billion to the U.S. economy through tuition, housing, and everyday expenses. The Department of Commerce places the figure even higher—over $50 billion.

Beyond dollars, these students:

  • Supported over 378,000 U.S. jobs across education, housing, dining, and retail
  • Fueled innovation in STEM programs
  • Added cultural capital to U.S. classrooms
  • Became future founders, researchers, and CEOs at U.S. companies

Will 2025 be remembered as the year this all went to 💩?

We’ve been sounding the alarm for months, since immediately after the Nov 5, 2024 U.S. elections:

But I admit we believed the risk was primarily around closing the door to students from certain countries, and higher rates of visa denials, not visa revocations and the deportation of students already in the U.S. This is arguably worse.

The Chilling Effect of Visa Terminations

This year has seen a dramatic rise in student visa terminations under new enforcement protocols. International students have had their legal status revoked for reasons ranging from serious allegations to minor infractions like traffic violations or even littering. In some cases, no explanation was given at all.

At least 400 students across 80+ U.S. campuses have already lost legal status, including within Red States and Purple States:

  • Texas: 118 students at universities like UT Dallas, Texas Tech, and Texas A&M. Four graduate students at Texas Woman’s University removed from SEVIS despite clean records, with no rationale provided.
  • Utah: Over 40 students at institutions including the University of Utah and Weber State, where five students were terminated for minor offenses like littering or lane-shifting violations.
  • Michigan: 22 students and alumni at the University of Michigan and other state schools.
  • Virginia: 9 Virginia Tech students/alumni faced SEVIS termination without explanation..

Notably, some students had no criminal charges, yet still faced removal from the SEVIS database—a silent erasure that leaves institutions scrambling to explain.

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The Early Signs of Defection

Sentiment among prospective international students is shifting—and fast. Recent surveys show a marked decline in confidence, particularly among applicants from India and China, the two largest sources of international students. Only 48% of Indian students and 27% of Chinese students retained positive perceptions.

Recruitment agencies in India are reporting a 20–30% drop in interest in U.S. institutions. Data scraped from Reddit suggests increased discussions about alternative destinations, with students citing ICE raids and visa revocations as deterrents. Some are shifting their sights to more stable destinations like Canada, Germany, and the UK.

Anecdotes from students include:

  • Withdrawing acceptances from Ivy League schools
  • Deferring for safety and political clarity
  • Canceling travel plans for fear of visa revocation upon re-entry

What was once considered a surefire path to a world-class education and opportunity now feels like a risky proposition.

What’s at Stake?

This has the potential to be an economic and geopolitical disaster for the U.S. Consider what we stand to lose:

Many colleges—especially second- and third-tier institutions—rely on full-paying international students to stay solvent. When they disappear, budget shortfalls emerge, programs shrink, and jobs vanish.

Here is our analysis shared in a recent report, of institutions particularly at risk - those highly dependent on international enrollment and with high acceptance rates - which means it is harder for them to find U.S. students to make up any shortfall:

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The Strategic Miscalculation

This was supposed to be political theater, but it’s turning into self-inflicted economic sabotage.

The U.S. is slamming the door on students who are already inside, attending class, paying full tuition, and contributing to local economies. In doing so, it’s:

  • Undermining one of America’s most successful exports—higher education
  • Torching the goodwill that built decades of soft power
  • Handing growth opportunities to Canada, Germany, Australia, and the UK on a silver platter

Make no mistake: the world is watching how we treat its brightest young minds.

A Path Back to Sanity

The solution doesn’t require new legislation or billion-dollar bailouts. It just requires a return to steady leadership.

Here’s where we can start:

  • Stop the silent terminations. SEVIS is a system—not a guillotine. Due process must apply.
  • Draw a line between misdemeanors and threats. A traffic violation isn’t a national security risk.
  • Re-center international students in the narrative. These are not line items. They are people. They are economic engines. They are strategic assets. They are in the country legally.

This isn’t about immigration policy. It’s about economic self-interest, national competitiveness, and basic fairness.

Final Thought

The United States has the most envied higher education system in the world—for now.

But prestige only goes so far when paired with unpredictability, fear, and hostility. Talent goes where it feels safe, and right now, it’s not feeling safe.

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