US universities are bracing for a significant decline in international enrollment in 2025—driven largely by a steep fall in Indian student numbers. A new report from a State Department–funded organisation reveals that graduate enrollment from India fell 10% in 2024–25, and international student numbers overall are projected to fall 17% in fall 2025. Over 61% of US institutions reported a noticeable drop in Indian enrollments.
Visa Concerns Top the List of Barriers
The report highlights that 96% of colleges identified visa application challenges as the primary factor behind the downturn. Since early 2025, the US has intensified scrutiny of international students as part of broader immigration tightening.
Key concerns include:
- Revocation of at least 6,000 student visas since January
- More than 170 investigations into alleged H-1B misuse
- A proposed $100,000 H-1B application fee
- Legislative efforts by conservative factions to restrict or dismantle the H-1B pathway
Together, these measures have created widespread anxiety among prospective Indian students and families, prompting many to defer or reconsider their US education plans.
Indian Students Still Lead—But the Trend Is Shifting
Despite the recent dip, India remained the largest source of international students in the US in 2024–25. Indian students made up nearly half of all graduate enrollments and one-third of total international enrollment, contributing to an overall 10% growth in total numbers.
However, this growth masks the deeper concern: graduate programs—the backbone of STEM education in the US—are seeing a decline, and institutions fear the impact on research output, teaching assistantships, and long-term talent pipelines.
Economic Impact on the US
International students represent about 6% of the US higher-education population, but their financial contribution is outsized. They add nearly $55 billion to the US economy every year and support over 355,000 jobs across sectors including housing, dining, research, and university services.
A prolonged decline in Indian enrollment could affect:
- University revenue streams
- Local employment
- Research productivity
- America’s long-standing dominance in global higher education
Looking Ahead
With visa policies tightening and geopolitical uncertainty rising, US institutions are urging policymakers to ease restrictions and provide clearer guidance. For now, the decline signals a potential realignment of global student mobility—and India’s outbound student market may increasingly shift to friendlier destinations such as Canada, the UK, Australia, and Europe.
