Douglas Olsen
International students in the US have been caught in a partisan divide on reopening the country, with the Trump administration's Immigration and Customs Enforcement (ICE) announcing a policy rule that could have impacted the hundreds of thousands of international students enrolled at US colleges. This rule has since been rescinded, but it caused concern as international students contribute significantly to the US economy, supporting about 460,000 jobs and keeping tuition lower for American students with their higher fees.
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What You'll Learn
International students' contribution to the US economy
International students have made significant contributions to the US economy, with their presence supporting local businesses, the real estate market, and the creation of jobs for US citizens. During the 2023-2024 academic year, it is estimated that the more than 1.1 million international students in the US contributed between $43.8 billion and $44 billion to the economy and supported 378,000 jobs. This figure is the highest amount ever calculated by NAFSA: Association of International Educators, a nonprofit dedicated to international education and exchange. The economic activity was up 9.3% from the previous year, though the rate of increase was lower than the previous year's 18.5%.
The economic impact of international students is felt across the country, with California, New York, Massachusetts, Texas, and Illinois being the top five states to benefit from their presence. In California, the state with the most international students, nearly 141,000 international students contributed $6.4 billion to the local economy. Texas and Massachusetts, which also have high concentrations of universities, saw contributions of $2.5 billion and $3.9 billion, respectively. Twelve states broke the $1 billion mark, contributing a combined 57% of the total dollar amount.
The presence of international students also has a positive impact on the availability of jobs in the US. For every three international students, one US job is created or supported. This is due to the increased demand for staffing in various sectors, including local bars and shops, as well as at universities. Additionally, international students tend to pay higher tuition fees, which can support universities in offering more financial aid to domestic students.
Beyond their economic contributions, international students also play a significant role in the American research enterprise and drive entrepreneurship and innovation. According to a report by the Association of American Universities (AAU) and the Business Roundtable, international students, scientists, and engineers help drive cutting-edge research and development, fill job openings in critical STEM fields, advance national security, and bolster the US economy by generating new domestic startups and businesses.
SAP, a popular software company, also offers study programs for international students in 14 countries. These programs provide opportunities for students to learn about SAP's software and gain certifications.
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Impact on US colleges and universities
International students in the US have been caught in the middle of a partisan divide on reopening the country, following the COVID-19 pandemic. A decision by US Immigration and Customs Enforcement (ICE) in July 2020 could have seen many international students sent home. This would have had a significant impact on US colleges and universities, as well as the wider economy.
International students represent 4.39% of the 20 million people enrolled in US higher education. They contribute to the economy, supporting around 460,000 American jobs. They also pay higher tuition and fees, which help keep costs lower for domestic students. The academic talents of international students also help advance scientific discoveries, which are critical as the nation tackles COVID-19.
The pandemic has already caused financial losses for colleges and universities, with many schools slashing budgets and staff due to refunds, disruptions to research, cancelled events, and cuts to state funding. Sending international students home would have caused further financial losses for these institutions, as they tend to pay higher tuition fees. This would have also impacted the local communities surrounding these institutions.
Colleges and universities have been forced to adapt their teaching methods to enable international students to remain enrolled. As of July 2020, 60% of institutions planned to offer in-person classes, 24% hybrid, and 9% online, with the remainder undecided. This has posed a challenge, as increasing in-person classes could risk further spread of COVID-19.
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Academic benefits of international students
International students in the United States benefit from a wide range of academic options, with many educational institutions to choose from, increasing their chances of receiving a quality education in their desired field of study. The country's diverse and vibrant campuses and classes offer unique cross-cultural experiences, helping students learn to avoid stereotyping and form more informed opinions. They gain a better understanding of international issues, foreign affairs, and immigration issues, as well as valuable communication skills and enhanced critical thinking abilities.
The United States offers an open social environment with more educational opportunities and interactions with faculty and staff. International students can benefit from informal mentorship and guidance from professors, which is not always common in other countries. They can also connect with industry, research, and activism leaders, gaining access to a global network of professionals.
The presence of international students in US colleges and universities is beneficial for American students as well. In today's globalized world, academic and social interaction with peers from different countries can provide American students with educational and career advantages. They can learn about new cultures, sample diverse cuisines, and develop a more global perspective, which is invaluable in an increasingly interconnected world.
Furthermore, international students contribute to the success and diversity of US colleges and universities. They bring different perspectives and experiences, enriching the learning environment for all students. The decline in the American college-aged population, particularly in certain regions, makes international students crucial for maintaining enrollment numbers and the financial health of educational institutions.
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US colleges' plans for fall instruction
As of 2020, colleges in the US were making plans for resuming instruction in the fall, but officials were uncertain about how institutions would function due to the ongoing coronavirus pandemic. Many colleges planned to be face-to-face, with 46% of respondents indicating that their institutions were preparing for a return to in-person instruction. However, the main watchword was flexibility, with many colleges pursuing hybrid in-person/online models and preparing to shift online if necessary. Some colleges, such as Oglethorpe University in Atlanta, intended to bring students back later than usual to allow for additional preparations and social distancing measures.
The University of California system declared a return to primarily in-person instruction for the fall of 2025, but specific plans were left to each of its ten campuses. The University of Houston, the University of Minnesota, and the University of South Carolina also announced their intention to return to full pre-pandemic levels of campus activity, with face-to-face classes and normal occupancy in residence halls. However, the University of California system acknowledged that the decision involved financial considerations, as overall enrollment and revenue from room and board had decreased during the pandemic.
In contrast, only 17% of respondents in one survey stated that their institutions planned to rely mostly or completely on online instruction for the fall term. The California State University System, for example, decided to continue with online instruction due to health concerns, worries about disrupting another semester, and the costs of safely bringing students back to campus. Jackson College in Michigan also planned to offer virtual classes in the fall.
Colleges that planned to reopen were preparing a range of safety measures, including masks, testing, social distancing, and increased cleaning and sanitizing. However, these measures came with additional expenses, which some colleges struggled to afford. With the course of the coronavirus still unknown, colleges acknowledged the need to be flexible and prepared to adapt their plans as necessary.
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US colleges' financial losses due to the pandemic
The COVID-19 pandemic has had a significant impact on the finances of US colleges and universities. The switch to online learning and the resulting decline in enrollment, particularly of international and out-of-state students, has resulted in major financial losses for these institutions. While some universities have managed to adapt and even grow their enrollment, many others have struggled to mitigate the financial challenges caused by the pandemic.
One of the main sources of financial loss for US colleges during the pandemic has been the decline in enrollment, especially among international students. International students typically pay full tuition, so their absence poses a significant financial challenge. The American Council on Education predicted a 25% decrease in international students in the US for the following year, resulting in a potential revenue loss of $23 billion for institutions. Additionally, colleges have faced pressure from students demanding refunds or discounts on tuition due to the shift to online learning.
The pandemic has also led to a decrease in out-of-state student enrollment, as students opt for campuses closer to home or take time off from their studies. This has further exacerbated the financial losses for colleges, as out-of-state students often pay higher tuition fees and contribute significantly to the overall enrollment numbers. The decline in student numbers has forced colleges to cut costs, with some institutions, such as Stanford University, announcing workforce reductions to address financial challenges.
The switch to online learning has also contributed to the financial losses for US colleges. While some universities have successfully transitioned to remote learning, others have struggled to adapt, incurring additional costs without a corresponding reduction in expenses. Implementing hybrid models, where part of the course is taught online, comes with its own set of expenses, including costly investments in personal protective equipment (PPE) and testing, tracing, and treating protocols.
To address the financial challenges, colleges have employed various strategies. Some have expanded their online and global programs, cut student fees, and increased marketing efforts to attract international and out-of-state students. Others have focused on serving their communities by offering flexible delivery methods and redesigning programs to help students return to the workforce. Despite these efforts, the financial impact of the pandemic on US colleges has been significant, and the long-term effects on higher education remain to be seen.
Regarding your question about SAP for international students, it seems to refer to the software company SAP SE and its learning programs. SAP offers various learning opportunities for international students, such as the VT/STAR program available in 14 countries. There is also a free edition of the SAP Learning Hub for students with a university email address. However, for specific details and admission guidance, it is recommended to search for universities or institutions that offer SAP courses or reach out to the company directly.
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