International Students in the U.S.: A Thriving Community Contributing Over $55 Billion to the Economy
International Students in the United States: A Vital Contribution to Higher Education and Economic Growth
The recently released Open Doors® 2025 Report on International Educational Exchange indicates that the United States continues to be a leading destination for international students. In the 2024/2025 academic year, 1.2 million international students were enrolled in U.S. colleges and universities, marking a 5% increase from the previous year. This expansion brings the international student population to a significant 6% of the entire higher education sector in the U.S.
Economic Impact of International Students
International students have played a critical role in boosting the U.S. economy, contributing nearly $55 billion in economic impact in 2024, according to the U.S. Department of Commerce. They not only pay tuition but also contribute to local economies through housing, food, and other expenses. Furthermore, these students supported over 355,000 jobs across the nation, highlighting their importance beyond the classroom.
Shifts in Academic Levels: Graduate vs. Undergraduate Enrollment
Interestingly, the report indicates a decline in graduate student enrollment, which decreased by 3% this year, bringing the total graduate student count to 488,481. This comes after three consecutive years of growth in that demographic. Conversely, the number of undergraduate students has actually increased by 4%, numbering 357,231, marking the first notable growth in that category since the pandemic began.
The rise of international students engaging in Optional Practical Training (OPT) has been substantial, with an impressive 21% growth leading to 294,253 individuals gaining practical experience in the U.S. workforce. Notably, more than half (57%) of these international students have chosen to pursue studies in STEM fields, indicating a strong alignment with industries critical to the economy
Principal Countries of Origin
Amongst the international student community, India tops the list as the largest source country, contributing 363,019 students—a 10% increase from the previous year. Meanwhile, China follows with 265,919 students, exhibiting a slight decrease of 4%. Several other countries, including Bangladesh, Canada, and Nigeria, have also seen a rise in student numbers, highlighting the global nature of U.S. educational institutions.
Distribution Across States and Institutions
International students are distributed throughout all 50 states, with notable growth observed in Texas (+8%), Illinois (+7%), and Missouri (+11%). Public institutions remain the preferred choice for 59% of international students, while community colleges have demonstrated the most rapid growth at a rate of 8%.
American Students Abroad: Trends and Destinations
The report doesn't only focus on incoming students; it also sheds light on American students studying abroad. In the 2023/24 academic year, 298,180 U.S. students traveled abroad for academic credit, indicating a 6% increase from the prior year. Traditional favorites like Italy, Spain, the United Kingdom, and France remain the top destinations, while Japan emerged as the fifth-largest destination, marking a significant 16% growth.
Future Trends and Insights
As we move forward, the early insights from the Fall 2025 Snapshot suggest a slight declining trend in overall international student numbers, with undergraduate enrollments reportedly rising by 2%, while graduate enrollments have decreased by 12%. The demand for new international students has also dropped with a significant 17% decline in initial enrollments. Despite these challenges, many U.S. institutions remain dedicated to nurturing the international student presence on their campuses, acknowledging the diverse perspectives and economic opportunities these students bring.
In conclusion, the significance of international students in the U.S. cannot be overstated. They not only enrich the educational environment but also substantially contribute to the economy and societal development. As the future unfolds, ongoing statistics and trends from organizations like the Institute of International Education provide invaluable insights into the dynamics of global educational exchange.