Effect of International Students on the US Economy
Of the 19.9 million students that attend college in the US, 1 million of those students come from countries from around the world. In light of the pandemic, many of these students have not been able to travel back to their home countries due to travel bans and the danger of traveling abroad. But as per the policy issued by Immigrant and Customs Enforcement (ICE) during the week of July 6th, all international students were forced to leave the country as numerous colleges transitioned to online/hybrid classes for the fall. Under its policy, ICE ruled that all students with study visas will not be allowed to take a full course load or continue living in the United States if their colleges have transitioned to online-only for the fall semester. The policy also states that students that have previously left the country will not be allowed to return either. ICE put this policy in place due to the “extraordinary circumstances” posed by this virus and are calling for a suspension of employment and student visas. Colleges across the country decided to take a stand against this new policy and although the final verdict resulted in the policy being revoked, it is important to recognize the impact these students have on the US economy and our global standing.
The higher education system in the US is one of the most prestigious and expensive around the world and consequently attracts students from all over the world. Therefore, the most basic effect of forcing international students to leave the US would be the losses suffered from their monetary contribution to the overall revenue of a college in the form of tuition and housing. Both of these sectors play a big part in the overall funding and revenues of public colleges in the United States. One such example is New York University. Of a total population of 51,123 students, 13,735 students come from abroad, which is about 27%. The median total cost of living based on all of the NYU schools, such as Tisch, Stern, etc., is $80,524.Through the year of 2018-2019, the total expenses paid by international students to attend school at NYU totaled to around $1 billion. In context, their fiscal 2018 budget was $11.945 billion, making the contribution of international students total around 8% of their fiscal budget (Communications). Many colleges around the country have similar breakdowns, with international students contributing a significant amount to their total revenue. As colleges move online and lose substantial income from avenues such as housing and dining, tuition remains as their main source of revenue in order to continue functioning. But as the policy had forbidden international students from taking a full online-course load, the reduced tuition would have resulted in colleges losing even more money. The policy may have also impacted the choices made by international students who are currently applying to US colleges. If the policy had not been revoked, they might have decided to go to schools in other countries over the US, in order to receive the entire college experience, which would reduce the overall population of international students in our country. This lack of attendance would have further contributed to very detrimental effects on colleges, our economy, and global stature.
A majority of the international students that migrate to the US come to pursue their higher education in STEM fields. A study in 2019 demonstrated that at least half of the international students enrolled in US colleges were pursuing a STEM degree. The importance of the enrollments in these fields lies in the future of advancements in STEM fields. By encouraging students in these fields to study in the US and pursue a career here post-graduation, they can further contribute to new innovations and advancements made in the US. Since 2000, 40% of Nobel Prize winners from America have been immigrants. In order to continue to grow the American status of being a super-power, encouraging the increase of international students is necessary. Through their innovations, they would contribute to the growing US intellectual capital and increase our global competitiveness. Additionally, in order to work around this policy, some colleges demonstrated their eagerness for creating a 1-3 credit course, specifically made for international students to take, in order to permit them to continue living in the US and also allowing them to come back to campus if international travel permits. Colleges trying to find the loopholes in the policy and work around them also demonstrates that they recognize the value of these students as a part of their community and are willing to take initiative to allow them to continue studying in the US, but due to the withdrawal of this policy, creating these courses was no longer required.
Furthermore, international students are permitted in the US on an F-1 visa, an initial study abroad visa, which also allows them to stay in the country post-graduation for 1 year and possibly join the US workforce. During their job search, many international students choose jobs that sponsor their visas and allow them to continue living in the US long-term. Finding these jobs further benefits the economy as they contribute to economic growth by earning wages and spending these funds in the country. They would also be making contributions to the country’s social security, Medicare trust fund, and tax revenue. However, due to the uncertainty that comes with finding a vaccine for the coronavirus, if students would have been forced to leave the country, it would become difficult to predict when they would be able to return. This unpredictability of travel bans can restrict immigrant’s opportunities for securing employment in the US, further reducing their overall contribution to our economy. Therefore, the retraction of the policy by ICE proves eliminates the possibility of immigrant students losing this opportunity to continue building their lives in the US.
As many more international students continue to live and study in the US, it is clear that their substantial presence in our country plays a significant role in our economy and our nation’s global accomplishments as well. Their contributions through tuition and further being employed in the United States has proven that allowing international students is a beneficial long-term investment for the US. On July 14th 2020, ICE announced their decision to revoke their policy after facing backlash from college administrations and students in the form of lawsuits and petitions. This change underlines the crucial role played by international students and their presence in the US.
Works Cited:
Bista, Krishna. “Journal of International Students 2015 Volume 5(4)”, OJED/STAR, 2019
Communications, NYU Web. “Fiscal 2018 Budget.” NYU, www.nyu.edu/about/news-publications/budget/budgets-of-prior-fiscal-years/fiscal-2018-budget.html.
“NAFSA International Student Economic Value Tool.” NAFSA, 2019, www.nafsa.org/policy-and-advocacy/policy-resources/nafsa-international-student-economic-value-tool-v2.
“New York University International.” College Factual, 19 June 2020, www.collegefactual.com/colleges/new-york-university/student-life/international/.
“The NCES Fast Facts Tool Provides Quick Answers to Many Education Questions (National Center for Education Statistics).” National Center for Education Statistics (NCES) Home Page, a Part of the U.S. Department of Education, nces.ed.gov/fastfacts/display.asp?id=372#College_enrollment.
Quinton, Sophie. “For First Time, Tuition Is Public College's Biggest Revenue Source.” Governing, 30 Mar. 2018, www.governing.com/topics/education/sl-tuition-college-funding.html.
