Sharp Drop in Indian Students Entering U.S. Colleges

The number of Indian students arriving in the United States for higher education fell by more than 40% compared with the same period last year, a decline recorded in July 2025 .

This was the largest decline among all countries and came alongside a 26% dip in arrivals from China . Combined, these two nations have historically made up the largest share of international students in American universities. The month’s total fell to under 79,000 international arrivals, the lowest July figure in years .

India had recently overtaken China as the largest source of students in the United States, with more than 330,000 enrolled during the 2023–24 academic cycle . This sharp fall therefore signals pressure not just on admissions numbers but also on the financial health of institutions that rely heavily on international enrollments. Since July and August usually bring the bulk of new arrivals, administrators are watching the data closely to see if the August numbers show a similar decline .

Visa Delays and Stricter Screening

The change is tied to developments in U.S. visa policy earlier in the year. The government suspended student visa interviews toward the end of May and the halt stretched into June . When interviews picked up again, applicants were subjected to stricter vetting that included checks of their social media profiles, which extended the process further .

For students in India, the impact was particularly heavy. Consular offices were already short on appointment slots, and the suspension created a backlog at the height of the student travel season . By May, visa issuance for F-1 applicants had already dropped by more than 20% compared with the prior year , a trend that fed directly into July’s steep decline.

Impact on American Universities

Universities are already feeling the strain from the sudden decline in international enrollments. Since international students are charged higher tuition than domestic students, universities rely heavily on that income to keep their programs running. Forecasts suggest that enrollment losses this fall could reduce tuition income by as much as $2.6 billion .

Universities with large international populations are already voicing concern. Leaders at the University of Southern California, which is working through a budget shortfall of over $200 million, warned of major revenue hits if the decline continues . Arizona State University’s president remarked that the disruption caused by visa delays has been even harder on the institution than the pandemic years . To close budget gaps, colleges have begun discussing measures such as higher tuition for domestic students, cuts in scholarships, or reductions in campus services.

The reach of this issue goes far beyond campus walls. In the previous academic year, international students added nearly $44 billion to the U.S. economy and helped sustain over 378,000 jobs . Beyond tuition, their spending on housing, transport, and daily living injected consistent support into local communities.

According to NAFSA, a 15% fall in international enrollment could strip nearly $7 billion from the economy and cut about 60,000 jobs . Since the July 2025 decline was far greater than that benchmark, the hit to communities with large student populations is likely to be severe.