Indian Student Enrolment in the US Sees Declines by 28% Amid Policy Changes and Rising Costs

Indian student enrolment in the US fell 28% year-on-year in March 2025 due to visa uncertainties, rising costs, and the potential termination of the Optional Practical Training (OPT) programme. The rupee’s depreciation and stricter visa enforcement have intensified concerns. Many students are now exploring destinations like Germany and France, offering affordable education and stable immigration policies. Despite this, the US remains a top choice for STEM and business programmes, with experts urging better information to address misinformation and fears.

The number of Indian students in the United States has witnessed a sharp decline of nearly 28% year-on-year as of March 2025. This drop coincides with the introduction of a new bill in the US Congress that could potentially eliminate the Optional Practical Training (OPT) programme, a critical pathway for international students, particularly in STEM fields, to gain work experience in the US for up to three years after graduation. 

 Decline in Numbers Post-July 2024 

Data from the Student and Exchange Visitor Information System (SEVIS), maintained by the US Department of Homeland Security, highlights a significant month-on-month reduction in Indian students: 

- In July 2024, Indian student numbers stood at 348,446. 

- By August 2024, this figure had dropped to 255,447, coinciding with the start of the academic year. 

- Since then, the numbers have remained steady at around 255,000 up to March 2025. 

This decline marks a stark contrast to the steady growth seen in Indian student enrolments in previous years. 

 Policy Uncertainty and Economic Factors 

Siddharth Iyer, Chief Operating Officer at One Step Global, attributes the drop to a combination of factors. "The 28% decline in Indian student enrolment in the US for FY25 is primarily due to visa uncertainties, proposed termination of the OPT programme, and rising tuition costs," he said. 

The OPT programme's potential discontinuation has caused widespread concern. During the 2023–2024 academic year, approximately 97,556 Indian students benefitted from OPT. Its proposed removal has raised fears about post-graduation job prospects and financial stability. 

Adding to the financial strain, the depreciation of the Indian rupee against the US dollar has significantly increased the cost of studying in the US. Annual expenses for Indian students now range between $25,000 and $45,000, making it increasingly unaffordable for many families. 

 Visa Scrutiny and Deportation Worries 

An increase in visa enforcement under President Donald Trump’s administration has also fueled anxiety among international students. Videos of plain-clothes officers arresting students near their homes have gone viral, causing alarm in the student community. 

According to a tracker by Inside Higher Ed, over 80 universities have reported visa cancellations, impacting both students and faculty across the country. US Secretary of State Marco Rubio confirmed last month that 300 visas have been revoked so far, attributing the actions to individuals involved in activities that "run counter" to US national interests. 

While many cancellations have been linked to pro-Palestinian activity or minor legal infractions, Abhijit Zaveri, founder and director at Career Mosaic, clarified that most deportation cases involve violations of visa conditions. "Reports of deportations have added to the fear, but these cases are not about law-abiding F-1 visa holders," Zaveri said. "They usually involve illegal entry, unauthorised work, or participation in politically sensitive protests." 

 Shifting Preferences Among Indian Students 

Given the current challenges, Indian students are increasingly exploring alternative study destinations. "Current trends suggest a longer-term shift, as Indian students increasingly look at countries like Germany and France, which offer affordable education and more predictable immigration policies," said Iyer. 

He also emphasized the importance of diplomatic engagement by the Indian government to safeguard the interests of Indian students abroad. Additionally, improving domestic higher education and providing better information about alternative options could help offset the impact of these challenges. 

 US Degrees Still in Demand 

Despite the hurdles, American universities remain a strong draw, particularly for programmes in science, technology, business, and research. "Despite the current situation, the US remains a top destination—particularly for STEM, business, and research-intensive programmes," said Zaveri. 

He also pointed out that many fears stem from misinformation. "It’s essential to separate fact from fear. Students entering through legal routes and following rules are not at risk," he said. 

Zaveri remains optimistic about the future of US education. "Student mobility has bounced back before. US education still offers unmatched academic value and career preparation," he concluded. 

While uncertainties persist, the allure of a US education continues, underscoring the importance of clear information and proactive decision-making for prospective students.