Student Salaries: Foreign vs. U.S.-Born

Trump’s Visa Crackdown: How It’s Affecting Foreign Students Who Out-Earn U.S. Peers

Infographic comparing the median salaries of foreign-born workers who came on student visas ($115,000) versus U.S.-born peers with similar degrees ($87,000)

Understanding the Impact of Recent Policy Changes on International Education and the U.S. Economy

International students contribute billions to the U.S. economy and drive innovation, but new visa policies may change that. This post explores the implications, with a focus on Indian students, and offers actionable steps for navigating these changes.

Introduction

Imagine studying hard for years, dreaming of a world-class education in the United States, only to face sudden roadblocks due to visa policy changes. This is the reality for many international students today. According to a recent analysis by the Economic Innovation Group, workers who came to the U.S. on student visas earn a median salary of $115,000, significantly outpacing the $87,000 earned by U.S.-born peers with similar degrees. These students also play a vital role in research and development (R&D), with 27% engaged in these critical activities compared to just 12% of native-born workers.

Yet, the Trump administration’s recent policies—such as pausing student visa interviews, expanding social media vetting, and targeting universities like Harvard—are creating uncertainty. These changes could reduce the number of foreign students, impacting not only their futures but also the U.S. economy and its global leadership in education. For Indian students, who make up the largest group of international students in the U.S., the stakes are particularly high.

[Insert infographic comparing salaries of foreign and U.S.-born students]

The Role of International Students in the U.S.

International students are a powerhouse for U.S. universities and the broader economy. In 2023, approximately 2.1 million foreign-born workers with Bachelor’s degrees, who initially arrived on student visas, were part of the U.S. workforce. These students often pursue degrees in high-demand fields like science, technology, engineering, and mathematics (STEM), filling critical skill gaps.

Beyond academics, their financial contributions are substantial. According to NAFSA, international students added $43.8 billion to the U.S. States like California, New York, and Texas see the largest benefits, with California alone gaining over $6 billion. For every three international students, one U.S. job is created or supported, from university staff to local businesses.

For Indian students, the U.S. has been a top destination due to its strong education system and career opportunities. Over 200,000 Indian students were enrolled in U.S. institutions in 2023-2024, many in STEM programs that lead to high-paying jobs.

Trump’s New Visa Policies: What’s Changing?

The Trump administration has introduced several measures that directly affect international students:

Pause on Student Visa Interviews: The State Department has directed U.S. embassies to halt new visa interviews for students, as reported by . This pause is in preparation for expanded social media screening, which could delay visa processing and prevent students from starting their studies on time.
Expanded Social Media Vetting: Consular officers are now required to thoroughly review applicants’ social media to identify any “hostile attitudes” toward the U.S., according to This raises concerns about privacy and could disproportionately affect students from certain countries.
Targeting Harvard University: A presidential proclamation restricts foreign student visas at Harvard, citing national security concerns, as noted by The Guardian. This move suspends new student entries and considers revoking existing visas, impacting a significant portion of Harvard’s international student body.
Focus on Chinese Students: The administration is also targeting Chinese students, particularly those in “critical fields” or with ties to the Chinese Communist Party, as stated by the State Department. This could affect the roughly 275,000 Chinese students in the U.S.

[Insert timeline graphic of key visa policy changes]

Economic Implications of Restricting International Students

The potential reduction in international students could have far-reaching effects on the U.S. economy:

Loss of Talent: International students, especially in STEM, often stay in the U.S. after graduation, driving innovation. The Economic Innovation Group notes that their higher engagement in R&D (27% vs. 12% for U.S.-born workers) is critical for technological advancements. Fewer students could mean fewer patents, startups, and breakthroughs.
Financial Strain on Universities: International students often pay full tuition, subsidizing costs for domestic students. A decline in enrollment could strain university budgets, leading to cuts in programs or staff, as highlighted by The Washington Post.
Impact on Local Economies: The $43.8 billion contributed by international students supports jobs in housing, dining, and retail. A drop in student numbers could hurt local businesses, particularly in college towns.

Global Competition for Talent

As the U.S. tightens its visa policies, other countries are seizing the opportunity to attract international students. The UK, Canada, Australia, and Germany offer streamlined visa processes and post-graduation work opportunities, making them appealing alternatives. For instance, NPR reports that UK universities are seeing increased applications due to U.S. restrictions. The Hong Kong University of Science and Technology has even offered places to Harvard students affected by visa policies, as noted by Forbes.

This global shift could lead to a “brain drain,” where talented students contribute to other economies, weakening the U.S.’s position as a leader in education and innovation.

[Insert chart showing top countries for international student enrollment]

Country	International Student Enrollment (% of Total)	Key Visa Policy Features
Canada	22-30%	Streamlined visas, post-graduation work permits
UK	22-30%	High fees but stable visa policies
Australia	20-25%	Flexible work options for students
Germany	10-15%	No tuition at public universities, EU Blue Card
U.S.	~6%	Restrictive visa policies, social media vetting

Impact on Indian Students: A Personal Perspective

Indian students, the largest group of international students in the U.S., are feeling the brunt of these changes. With over 200,000 enrolled in 2023-2024, many are now reconsidering their plans. According to The Guardian, career counselor Devatwal reports a sharp decline in students choosing the U.S., from over 100 annually to just 10 in 2025. Many are turning to the UK, Canada, or Germany, where visa processes are more predictable and tuition is often lower.

The emotional toll is significant. Students like Kaushik Sharma, a 28-year-old aspiring to study public policy at Harvard, told he feels “completely in the dark” about his future. Families who invested years and significant funds—often $40,000 to $80,000 annually—are now in limbo, with some seeking divine help at “visa temples” in India.

The BBC notes a 10% drop in international student enrollments in the U.S. as of March 2025, with Indian students particularly affected. This uncertainty also impacts STEM students who rely on Optional Practical Training (OPT) programs to work in the U.S. post-graduation, as reported by India Today.

[Insert photo or quote from an affected Indian student, e.g., “I spent years preparing for the U.S., but now I’m looking at Canada.”]

Legal challenges are underway, as reported by The Guardian.
Businesses: Tech and engineering firms worry about losing access to global talent, which could drive innovation to other countries, according to Inside Higher Ed.
Immigration Advocates: Groups like the American Immigration Lawyers Association criticize social media vetting as invasive and potentially discriminatory.
Students: Indian and other international students are anxious, with some scrubbing social media profiles or exploring alternatives, as noted by NBC News.

Supporters of the policies argue they enhance national security, but critics warn of economic and cultural losses.

Conclusion: Balancing Security and Opportunity

The Trump administration’s visa policies aim to address national security but risk alienating a vital source of talent and economic growth. International students, particularly from India, contribute immensely to the U.S. through innovation, diversity, and economic activity. As other countries welcome these students, the U.S. must weigh the long-term costs of restrictive policies against short-term security goals.

For students, staying informed and exploring alternatives is key. For policymakers and advocates, supporting inclusive education policies can ensure the U.S.

Consult Experts: Work with education counselors or immigration lawyers to navigate changes.
Explore Alternatives: Research Canada like or the UK for stable visa options.

For Current Students:

Comply with Rules: Ensure your visa status is in order, as advised by
Be Cautious Online: Limit sensitive social media posts, as they may be scrutinized.
Seek Support: Contact your university’s office international for guidance.

For Advocates:

Promote Open Policies: Support initiatives that welcome international students.
Raise Awareness: Share the economic and cultural benefits of international education.

By taking these steps, you can navigate this and contribute to a more inclusive future.

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