International Students Contribute $43.8 Billion to the U.S. Economy
Massachusetts Gains $4 Billion Economic Impact from Harvard
An analysis has found that the conflict between the Donald Trump administration and Harvard University over international student visa issues could impact not only university finances but also the broader regional economy. Given international students' tuition payments and consumption activities, restrictions on visas could actually deal a blow to the local economy.
According to the National Association of Foreign Student Advisers (NAFSA) on June 9 (local time), foreign students contributed a total of $43.8 billion to the U.S. economy during the 2023-2024 academic year. Of this, approximately $4 billion was contributed to the Massachusetts regional economy, and more than 35,000 jobs were created as a result.
In particular, Harvard University has a significantly higher proportion of international students compared to other institutions, amplifying its impact on the local economy. According to CNBC, international students made up 27% of Harvard's student body for the 2024-2025 academic year, a 5 percentage point increase from ten years ago. This figure far exceeds the average for U.S. universities.
Currently, more than 6,000 international students are enrolled at Harvard, and the economic impact they generate is considerable. Economic analysis firm Implan estimated that if Harvard's international students spend $3,000 per month, they support 1,125 jobs in the region and contribute about $180 million to the Boston area's GDP. This indicates that not only tuition payments but also living expenses and consumer spending are crucial drivers circulating through the local economy.
The report stated that a $2.2 billion cut to federal research funding could deal a blow of up to $2.9 billion to Boston's regional GDP and could affect as many as 15,500 jobs.
Experts have expressed concern that restrictions on international student visas could directly hit university finances. Robert Franek, editor-in-chief of The Princeton Review, pointed out, "International students generally pay full tuition, so their tuition payments are an important source of income for many U.S. universities, including Harvard."
Bjorn Markeson of Implan said, "Banning international student enrollment could destabilize an important revenue stream for universities," adding, "Since Harvard has a particularly high proportion of international students, the impact would be even greater." He continued, "The economy is a network structure, so money doesn't stay in one place but flows. The shock to Boston could ripple throughout New England."
There are also concerns that restrictions on international students could negatively affect the diversity of U.S. university communities. Editor Franek emphasized, "The reason universities actively recruit international students is because they add diversity to the student body, which benefits all students."
Previously, the Trump administration attempted to ban international student enrollment at Harvard, citing insufficient response to antisemitism, but the conflict with Harvard escalated when the court intervened. Judge Allison Burroughs of the U.S. District Court for the District of Massachusetts issued a temporary restraining order on the ban, stating that the decision would remain in effect until the 20th of this month.
Harvard President Alan Garber said, "We are preparing measures to ensure that international students and researchers can continue their studies and research this summer and in the upcoming semester."
Meanwhile, U.S. Secretary of Education Linda McMahon stressed in an interview with NBC News that "Harvard must take a more proactive approach to addressing antisemitism on campus and to screening international student admissions."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
