Moody’s Warns Restrictive US Policies Risk Credit for Colleges with High International Enrollment

Recent reports highlight significant financial risks for U.S. colleges and universities heavily reliant on international students due to restrictive federal policies under President Trump’s administration, including visa tightening, travel bans, and increased scrutiny of student visa applicants. Moody's Ratings warns that institutions where international students comprise over 20% of enrollment face particular credit risks, with some specialty and art schools being most vulnerable. International students generally pay full tuition, so declines in their numbers could decrease universities' tuition revenues, especially with fewer domestic students expected in coming years. Meanwhile, despite global instability and economic concerns, interest in studying abroad remains strong among U.S. students, with growing preference for English-speaking countries like the UK and Australia; however, financial concerns remain the primary barrier. Additionally, the growth in education loans, especially for study abroad, has slowed significantly in India, reflecting broader uncertainties around international education. Together, these developments illustrate the complex challenges and evolving dynamics affecting international education and university finances in the U.S. and beyond.