A significant backlog in the processing of student visas is currently endangering the fall admissions at universities across the United States, particularly affecting Indian students. Experts caution that enrolment figures for Indian students may plummet by as much as 80%, a development that could result in an estimated loss of $2.6 billion in tuition revenue for American higher education institutions. This disruption is not only a threat to the financial well-being of universities but also jeopardizes critical areas such as STEM research and academic cooperation between the US and India. With Indian students contributing close to $9 billion annually to the US economy—primarily through STEM-related programs—the delays could cause long-term damage to research output and institutional budgets.
The delay is attributed to visa processing issues and stricter vetting protocols that are affecting thousands of aspiring students. Notably, Arizona State University President Michael Crow reported that nearly 1,000 international students—approximately a third of their incoming foreign student body—still lack the necessary visas, putting tens of millions of dollars in university funding at risk.
Earlier this year, the Trump administration issued a directive for all US consulates to pause new student visa applications, which intensified the issue. Although visa processing resumed after a two-week break, the backlog remains massive. Many students are now either unable to secure interview slots in time or are facing unexplained denials.
Legal experts such as Poonam Gupta from Summit Legal LLC have highlighted that up to 80% of Indian enrolments might be lost if the current situation continues. She pointed out that visa appointment portals in India are functioning inconsistently, often without confirmations, and many students are being denied under Section 214(b), which questions their intent to return to India post-graduation. Other common reasons for rejections include inadequate financial evidence, incomplete paperwork, or unsatisfactory visa interview performance.
Beyond the educational impact, the economic consequences of this visa crisis are far-reaching. Projections from NAFSA and other educational organizations suggest that a 30% fall in first-time international student enrolment would lead to losses of at least $2.6 billion across American campuses. This decline could also result in more than 60,000 job losses in college towns and surrounding metro regions.
Furthermore, NAFSA warns of even greater financial damage shortly. Their report states that the economic contribution of international students, which peaked during the 2024–25 academic year, could fall by another $7 billion during the 2025–26 cycle if visa approval rates do not improve.
The situation has prompted concern from US lawmakers as well. A bipartisan group of 14 representatives, including several Indian-American politicians, recently appealed to Secretary of State Marco Rubio to intervene and expedite student visa appointments. They emphasized the importance of Indian students in maintaining America's leadership in scientific research and education.
Sophie Alcorn, an immigration law expert, echoed these concerns by stressing how delays in student visa approvals not only disrupt educational plans but also harm broader academic and diplomatic relations between the United States and India. She noted that Indian students are crucial for maintaining diversity, sustaining STEM research programs, and supporting the financial structure of many US universities.
Meanwhile, proposed federal budget cuts could make the situation even worse by reducing funds for key programs like research grants, financial aid, and international education support—further tightening university budgets and diminishing opportunities for both domestic and foreign students alike.
