US Universities See Drop In International Applications, Indian students Among Worst Affected

More than half of US colleges and universities have reported a decline in international student applications for the 2026-27 academic year, with visa delays, refusals and uncertainty over US immigration policies emerging as major concerns.

The findings are based on the Institute of International Education’s (IIE) Spring 2026 Snapshot, which surveyed 585 US higher education institutions. The participating institutions collectively account for about half of the international student population in the country.

According to the survey, 59 per cent of institutions reported a decline in international applications, while only 14 per cent recorded an increase. Another 20 per cent said application numbers were broadly unchanged.

The outlook for enrolment is also subdued. Around 63 per cent of institutions expect their international student numbers to decline in 2026-27, while nearly one in four anticipate a substantial fall.

India Emerges As A Key Concern

The decline has been particularly visible in applications from India, which remains the largest source of international students for US universities.

The survey found that 61 per cent of responding institutions reported a fall in applications from Indian students. Only 39 per cent reported that applications from India had either increased or remained stable.

The development comes despite the strong presence of Indian students in the US. During the 2024-25 academic year, 363,019 Indian students were studying in the US, a 10 per cent increase from the previous year, according to the latest Open Doors data. India accounted for nearly one-third of the international student population in the country.

However, the latest application figures suggest that the growth seen in the overall Indian student population may not necessarily continue at the same pace.

Visa Uncertainty Weighs On Student Decisions

Visa-related concerns were the most frequently cited factor behind the weaker outlook. Ninety-two per cent of institutions expecting a decline in international enrolment pointed to visa processing problems, including delays and higher rejection rates.

US universities are also dealing with questions from prospective and existing international students about the country’s broader political and immigration environment. The IIE survey found that 64 per cent of institutions had seen an increase in questions or concerns about the US political climate from international students.

Travel restrictions have added another layer of uncertainty. About 80 per cent of institutions identified US travel restrictions as a factor affecting international enrolment, while 77 per cent pointed to growing competition from other study destinations.

The impact has been more pronounced at the postgraduate level. A separate analysis of the IIE survey found that 43 per cent of institutions reported a substantial decline in graduate applications, compared with 31 per cent reporting a substantial fall in undergraduate applications.

US Remains A Major Destination, But Competition Is Rising

The latest figures do not suggest that international students have stopped considering the US altogether. Rather, universities are increasingly competing with other destinations as students weigh visa certainty, costs and post-study opportunities alongside academic reputation.

The trend follows an earlier decline in new international enrolments. IIE’s Open Doors 2025 report showed that the number of new international students entering US institutions for the first time fell 7 per cent to 277,118 in 2024-25. At the same time, the total international student population rose 5 per cent to 1,177,766, partly supported by a sharp increase in students on Optional Practical Training, or OPT.

For Indian students in particular, uncertainty around what happens after graduation has become an important part of the study-abroad decision. Changes affecting student visas, OPT and employment pathways have made the overall US education-to-career route harder for applicants to assess.

Despite the slowdown, US universities continue to view international recruitment as important. The IIE survey found that 82 per cent of institutions still considered international recruitment a priority, citing factors including campus diversity, institutional strategy and financial contributions from international students.

The survey therefore points to a more cautious phase for US higher education rather than a complete collapse in international demand. Universities continue to seek students from overseas, but visa uncertainty, changing immigration rules and competition from other countries are increasingly influencing where students choose to apply.