US Student Visa Crackdown Backfires: Indian arrivals crash 46%, straining university budgets

Study Abroad (Representative Image)

New data reveals a steep decline in international student arrivals to the United States, with Indian students being the hardest hit by recent visa policy changes and administrative delays.

A sharp decline in international student arrivals is sending shockwaves through the US higher education sector, with new data indicating that strict visa policies are the primary cause. According to a Bloomberg analysis of International Trade Administration data, total student visa arrivals fell by 28% in July 2025, marking the fourth consecutive month of decline.

The most significant decrease was among students from India, whose arrivals nearly halved, declining by 46%. Arrivals from China, the second-largest source of international students, also fell significantly by 26%. This dual decline from the top two markets presents a tricky financial threat to American colleges and universities that rely heavily on foreign tuition.

The July figures confirm warnings from university associations, which had already projected a 30% drop in first-time foreign student enrollment for the Autumn 2025 semester. This downturn is estimated to cost approximately $2.6 billion in tuition revenue from the U.S. education system.

The fall is directly attributed to a series of policy shifts and administrative hurdles initiated by the Trump administration. These measures, focused on tightening immigration and increasing scrutiny on foreign students, have created an environment of uncertainty and significant processing backlogs at US embassies and consulates, particularly in key Asian markets.

The timing of these policies has been described as particularly damaging. In late May, the administration announced a pause in student visa interviews. While interviews resumed in mid-June, they came with a new mandate: reviews of applicants' social media profiles.

This enhanced scrutiny was implemented during the critical summer visa application season, causing massive delays and leaving thousands of accepted students in limbo. The July data suggests many were unable to secure their visas in time, which is historically the peak month for new student arrivals.

According to the report, the financial impact is already being felt at the institutional level. Officials at universities with large international populations, like the University of Southern California (USC), warn that continued declines could result in tens of millions of dollars in lost revenue. USC is already confronting a $200 million deficit.

The situation is so severe that Arizona State University President Michael Crow stated that the current visa delays have been more disruptive than the pandemic to international student enrollment.

According to Open Doors, a record 1.1 million international students were enrolled in U.S. institutions during the 2023-24 academic year. India led with nearly 332,000 students, followed by China with approximately 277,000. The steep drop in arrivals from these countries indicates a strong reversal of this trend, with long-term implications for the global competitiveness and financial health of American higher education.