Podcast Summary: "How Much International Students Matter to the Economy"

The Indicator from Planet Money by NPR, hosted by Darren Woods, delves into the significant role international students play in the U.S. economy. In the May 1, 2025 episode titled "How Much International Students Matter to the Economy," Woods is joined by business journalist Talib Visram to explore the ramifications of the Trump administration's policies on international students and the broader economic implications.

1. Introduction to the Issue

Darren Woods opens the episode by introducing Talib Visram to discuss the critical topic of international students in the U.S. economic landscape.

Darren Woods [00:20]:

"Today you're here to talk about international students, right?"

Talib Visram [00:24]:

"As you know, since March the Trump administration has been revoking visas from foreign students across the country. From the biggest state schools systems to tiny community colleges."

2. Trump Administration's Crackdown on International Students

Visram outlines the Trump administration's aggressive stance on international students, initially targeting those with perceived pro-Palestinian activism and later expanding to include students with minor legal infractions.

Darren Woods [00:34]:

"They started targeting students with perceived links to pro Palestinian activism. It's since expanded to include some students with minor infractions with the law."

Universities are responding by advising students against traveling abroad due to increasing visa issues at borders, creating an atmosphere of uncertainty and fear among the international student community.

3. Personal Story: Valentina's Experience

The episode highlights the personal toll of these policies through the story of Valentina Tardunho Poleo, a Venezuelan PhD student at NYU, who is relocating to Oxford University to escape the unstable environment.

Valentina Tardunho Poleo [01:10]:

"A PhD is a very long commitment. So I had this idea in my head this is where I'm going to be for the next five, six, seven, who knows how many years."

Valentina's decision to self-deport underscores the broader impact of policy changes on individual lives and academic pursuits.

Talib Visram [01:30]:

"She's choosing essentially to self deport. She feels it's best for her own safety given the current climate."

4. Economic Impact of International Students

International students constitute approximately 6% of the higher education population in the U.S., contributing a staggering $44 billion to the economy and supporting nearly 400,000 American jobs in the last academic year alone.

Darren Woods [02:59]:

"There are a million or so international students in the US... last school year they contributed $44 billion to the US economy and created and supported close to 400,000 American jobs."

International students are considered an "export" because they pay for U.S. educational services with foreign currency, significantly benefiting local economies across the country.

5. Universities' Dependence on International Students

International students often pay full tuition and living expenses, which serve as a substantial revenue source for universities. For instance, New York University has seen its international student enrollment surge by 250% over the past decade, with tuition contributing approximately 12% of total revenue for public universities.

Barnett Sherman [03:55]:

"They [international students] actually could be viewed to some degree as a subsidy to US students... international student provides a great opportunity for schools to bolster up and improve their revenues and improve their course offerings."

This reliance became particularly evident during the 2008 recession when universities like Michigan State University increased international enrollment to compensate for declining domestic student numbers.

6. Decline in International Student Enrollment

However, the Trump administration's restrictive policies have jeopardized this reliable funding source. Between January and March of the current year, there was a 38% drop in interest for master's and PhD programs in the U.S., according to Study Portals.

Talib Visram [05:07]:

"One study showed that some public schools used foreign recruitment to weather the 2008 recession... But now that usually reliable source of funding might be in jeopardy."

The American Council on Education attributes this decline to the administration's targeting of students advocating for Palestinian rights and the revocation of visas for minor infractions.

Talib Visram [05:38]:

"After he entered office, DHS and the State Department started singling out students speaking in favor of Palestinian rights."

7. Alternatives for International Students

Faced with increasing restrictions in the U.S., international students are exploring alternative destinations such as Canada, Australia, the UK, and increasingly affordable options in other countries. These nations offer robust educational opportunities without the looming threat of visa revocations.

Barnett Sherman [08:35]:

"There are a lot of US Students that are looking abroad and saying, gee, why should I go into debt when I can go overseas and get a great education."

Moreover, these countries are not subjected to the same level of government interference in academic freedom, making them more attractive to aspiring scholars.

8. Conclusion: Broader Implications

The crackdown on international students not only affects individuals like Valentina but also poses a significant threat to the U.S. higher education system and its economic contributions. The potential "brain drain" extends beyond students to include professors and scientists, exacerbating the challenges faced by U.S. institutions in maintaining their competitive edge globally.

Darren Woods [07:08]:

"This is all unsettling for students like Valentyna."

Talib Visram [09:17]:

"For Valentina, starting a new chapter in the UK outweighed the hassles of staying."

The episode concludes by highlighting the complexity and far-reaching consequences of restrictive immigration policies on the academic and economic fabric of the United States.

Darren Woods [10:07]:

"Tomorrow on the show, we're going to dig more into the brain drain, and not just from students, but also professors and scientists."

Key Takeaways

• Economic Contribution: International students are a vital economic asset, contributing billions to the U.S. economy and supporting hundreds of thousands of jobs.

• Revenue for Universities: They provide essential revenue streams for universities, enabling institutions to enhance their offerings and maintain financial stability.

• Policy Impact: Restrictive immigration policies have led to a significant decline in international student enrollment, threatening both economic benefits and academic excellence.

• Global Competition: As other countries bolster their educational offerings, the U.S. risks losing its position as a premier destination for international scholars.

• Personal Stories Matter: The experiences of students like Valentina illustrate the human cost of policy changes, emphasizing the need for balanced immigration approaches that consider both security and economic vitality.

This episode underscores the critical role that international students play in the U.S. economy and the importance of inclusive policies that support global academic collaboration and economic growth.