The GMAC Report Reveals a Stark Decline in New International Enrollments

The Graduate Management Admission Council (GMAC), a leading authority on graduate business education trends, recently released its 2026 Geographic Mobility White Paper, highlighting a dramatic 19 percent drop in new international student enrollments across U.S. higher education institutions as of August 2025 compared to the prior year. This figure underscores a broader contraction in the flow of global talent to American campuses, particularly affecting graduate management programs where two-thirds of U.S. business schools reported declines, including 26 percent experiencing drops of 15 percent or more.

While the report focuses primarily on business and management fields—such as MBAs, master's programs, and Ph.D.s—the trends signal challenges for U.S. universities reliant on international tuition revenue. Ph.D. programs saw the steepest fall at 57 percent, followed closely by business master's degrees with nearly half reporting losses. Global MBA programs showed relative stability, but the overall picture paints a sector under pressure.

This downturn arrives after years of steady growth, where international students comprised a vital segment of U.S. higher education, contributing diverse perspectives and substantial economic value.

Indian Students Hit Hardest: A 45 Percent Plunge

Among source countries, India stands out with a staggering 45 percent reduction in new enrollments at U.S. universities in August 2025. Nearly 90 percent of U.S. business programs identified India as the leading source of post-deposit attrition—cases where students paid deposits but failed to enroll, often due to last-minute visa complications. Indian applicants, traditionally the largest group for graduate programs, now represent a critical loss for institutions targeting South Asian talent.

Despite this, Open Doors 2025 data from the Institute of International Education (IIE) notes India as the top sender overall with 363,019 students in 2024/25 (up 10 percent year-over-year), though new graduate arrivals dropped sharply. The GMAC report signals an acceleration of this reversal into fall 2025, exacerbated by H-1B visa uncertainties and rising living costs.

Chinese enrollments have also softened, contributing to the aggregate decline, but India's disproportionate impact highlights shifting preferences among high-potential demographics.

Consistent Trends from Broader Surveys: Open Doors and NAFSA Snapshots

Corroborating GMAC's business-school-centric view, the IIE's Open Doors 2025 report records 1.177 million total international students in 2024/25—a 5 percent rise overall—but flags a 7 percent dip in new enrollments (277,118), with new graduates down 15 percent. The Fall 2025 snapshot reveals further softening: total enrollment minus Optional Practical Training (OPT) down 1 percent, new arrivals off 17 percent, graduates -12 percent, though undergraduates edged up 2 percent.

NAFSA's analysis quantifies the fallout: a $1.1 billion revenue shortfall and nearly 23,000 lost jobs nationwide, driven by fewer high-spending graduate and non-degree students. Undergraduate gains provided minor cushioning, but OPT surges (up 14 percent) shifted spending off-campus.

These multi-source confirmations depict a synchronized contraction across U.S. higher education.Read the full GMAC report.

Root Causes: Visa Bottlenecks, Policy Uncertainty, and Escalating Costs

Ninety-six percent of surveyed institutions blame visa application delays and denials, with 68 percent citing travel restrictions. Under the Trump administration, suspended visa interviews, heightened scrutiny, and H-1B cap concerns deterred prospects—40 percent of non-U.S. candidates reported lower U.S. interest by late 2025.

• Geopolitical tensions and immigration rhetoric amplified perceptions of hostility.
• Rising tuition (up 3-5 percent annually) and living expenses amid 3 percent inflation outpaced alternatives.
• Post-deposit attrition spiked from India, China, Nigeria due to multiple deposits hedging visa risks.

Economic headwinds globally further prioritized return-on-investment (ROI), favoring shorter, cheaper programs abroad.

Financial Strain on Campuses: Revenue Gaps and Budget Cuts

International students, paying full out-of-state tuition without aid, subsidize domestic operations—often 20-30 percent of revenue at public flagships. The $1.1 billion hit threatens program viability, research funding, and staff.

University of North Texas (UNT) exemplifies: a $45 million shortfall from intl declines prompts cuts. Highly dependent schools like New York University (NYU, 30 percent intl), Johns Hopkins, Columbia, and Carnegie Mellon face amplified risks.

Small privates and blue-state publics, less buffered, confront demographic cliffs alongside.NAFSA economic analysis.

Photo by Laura Rivera on Unsplash

Case Studies: Universities Navigating the Downturn

At the University at Buffalo, graduate intl enrollment fell 15 percent, straining STEM programs. Northeastern University, once a intl magnet, reports moderated declines via diversified recruitment. Illinois and Missouri saw fastest growth pre-drop, now pivoting urgently.

Business schools like those in the GMAC survey adapt by emphasizing hybrid formats, though full online lags in appeal.

Global Re-Routing: Europe and Asia Gain Ground

Prospective students increasingly eye Europe (Germany, France, Ireland—double-digit gains via English programs, post-study work) and Asia (Japan, South Korea, India—affordable, government-backed). Canada, UK, Australia face their own caps, but Western Europe rises from 57 percent to 63 percent consideration.

Indian applications to domestic GME programs surged 25 percent, signaling regional hubs emerging.

Institutional Strategies: Adaptation and Innovation

Seventy-two percent of colleges offered spring 2026 deferrals, 56 percent for fall 2026, buying time. Others intensify recruitment in Latin America, Africa; enhance visa counseling; and bolster domestic outreach. Deloitte's 2026 trends urge reinvention via AI, flexible pathways.

• Target emerging markets like Nigeria, Vietnam.
• Partnerships for pathway programs.
• ROI-focused marketing on employability.

Check higher ed jobs for roles in international recruitment amid shifts.

Expert Perspectives: A Multifaceted Challenge

IIE's Dr. Mirka Martel stresses preserving Duration of Status for retention. NAFSA advocates streamlined visas; ACE notes 96 percent institutional consensus on processing fixes. Brookings warns small colleges lose most financially/demographically.Open Doors data.

Solutions on the Horizon: Policy Reforms and Best Practices

Recommendations include expedited visas, H-1B expansions, and marketing U.S. innovation. Universities should invest in compliance, agent networks. For faculty eyeing stability, explore higher ed career advice.

Photo by Fotos on Unsplash

Outlook for 2026: Marginal Recovery or Prolonged Slump?

QS forecasts modest declines through 2030 sans reforms; GMAC sees sustained Asia/Europe shifts. Optimism hinges on policy easing, but competition intensifies. U.S. higher ed must reaffirm global appeal.

In this evolving landscape, platforms like Rate My Professor and university jobs help navigate changes. Share insights in comments, and visit higher ed jobs or career advice for opportunities.