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Trump’s visa rules could leave 150,000 students stranded and cost US colleges $7 billion

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Highlights:

  • 150,000 international students may miss fall 2025 start, costing US colleges $7 billion.

  • Visa interviews resumed in June but remain limited, with higher scrutiny and denials.

  • Projected 30% drop in new international enrollments; $2.6 billion tuition loss nationwide.

  • State Department warns visa appointments will be “extremely limited until further notice.”

Visa hurdles leave students stuck abroad

US higher education is facing a potential $7 billion loss as an estimated 150,000 international students may be unable to start the fall 2025 semester due to new visa restrictions, delayed interviews, and increased scrutiny.

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Thousands of admitted students remain stranded, unable to obtain the required visas despite having secured places at top universities.

Although student visa interviews resumed in mid-June after a month-long suspension, applicants continue to face limited appointment slots, added questioning, and a higher risk of denial.

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Universities report major financial impacts

At Arizona State University, President Michael Crow said that 1,000 incoming international students still lack visas, estimating the resulting financial loss in the “tens of millions of dollars.” He said the impact goes beyond lost tuition, affecting talent, partnerships, and future alumni networks.

Furman University in South Carolina reported that its incoming class dropped from 613 to 562 students, with visa delays for international admits cited as a major reason.

Even smaller institutions with only a few international students are missing five to ten enrollees—enough to affect diversity and financial stability.

Uneven recovery after interview suspension

The restart of visa processing has been inconsistent. One elite private university reported a sevenfold difference in visa issuances between Chinese and Indian students in late June.

Reports indicate that consulates in key countries like India and China remain overwhelmed, creating backlogs that add to uncertainty for both students and administrators.

Enrollment drop could reach 30 percent

NAFSA: Association of International Educators and JB International estimate that new international student enrollments could decline by nearly 30% this fall.

According to Shorelight, that drop could lead to $2.6 billion in lost tuition revenue nationwide, affecting public universities, private institutions, and community colleges. Budget shortfalls may lead to staffing cuts, reduced programs, and less financial aid for domestic students.

Temporary solutions abroad

Some universities are seeking workarounds. The University of Arizona has opened a campus in London to allow students to begin studies while awaiting US entry. Harvard Kennedy School is relocating incoming students to the University of Toronto’s Munk School.

While these measures provide a temporary path forward, they highlight the ongoing uncertainty surrounding US visa processing.

Political pressure but limited relief

Members of Congress have pressed the State Department to act, particularly over delays affecting Indian students.

However, on June 30 the department stated that “additional or new appointments for student or exchange visitor visa applications will be extremely limited until further notice.” Expedited requests are being considered case by case, but thousands still face fast-approaching academic deadlines.

Risks to US higher education standing

Observers warn that the impact of these restrictions extends beyond immediate enrollment numbers.

International students contribute to the US reputation as a global academic leader, support research, and strengthen cultural and economic ties. As barriers grow, countries such as the UK, Canada, and Australia are attracting students who might once have chosen the US.

If the visa squeeze continues, experts say the consequences could affect rankings, research partnerships, and the nation’s long-term ability to compete in the global education market.

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