DePaul’s 30% Drop Triggers Budget Cuts Across U.S. Colleges

(CHICAGO, ILLINOIS, UNITED STATES) DePaul University is moving to cut spending after a steep drop in international enrollment this fall exposed a growing money crunch on campuses across the country. The Chicago school reported a 30% decline in international students and warned faculty of budget cuts, including a hiring freeze, executive pay reductions, and tighter controls on discretionary spending. University president Robert Manuel told staff that visa complications and waning student interest linked to federal policy changes played a central role, with first-year international graduate student numbers down nearly 62%.

At least 35 other U.S. institutions have announced similar measures as administrators try to balance shrinking tuition revenue with rising costs. The losses are not small. At DePaul University, where roughly 21,000 students study across multiple colleges, the drop translates into hundreds fewer international students paying near full tuition — a blow that hits both the operating budget today and the pipeline for degree programs tomorrow.

National indicators and economic impact

The effects reach far beyond one campus. Early indicators suggest a broad pullback:

• Some sector data point to a 2.4% decline in overall international student presence compared with last September.
• More recent snapshots show deeper slippage into 2025.
• NAFSA, the association of international educators, estimates falling international enrollment could cost the U.S. economy about $7 billion and wipe out more than 60,000 jobs if current patterns hold.

According to analysis by VisaVerge.com, schools that relied heavily on foreign tuition are now racing to adjust financial plans mid-year, a step that often triggers program reviews, hiring pauses, and leadership scrutiny.

Visa and policy pressures

University officials and recruitment counselors point to a stack of visa-related hurdles that turned a hard season into a punishing one.

• Several consulates paused student visa interviews between late May and mid-June 2025, right when students typically secure approvals.
• New protocols have added social media vetting requirements.
• Appointment slots remain tight in high-demand countries such as India, China, Nigeria, and Japan.
• Government data show that F-1 student visa issuance fell 12% from January to April 2025 and 22% in May year-over-year, raising alarms about the fall intake.

Policy crosswinds also run back several years. During the previous administration, a proposal linked to President Trump to cap international undergraduate enrollment at 15% surfaced in policy circles. Though not adopted, university leaders say the idea signaled a tougher stance that still shapes perceptions abroad. The policy climate tightened again in June 2025 with a new executive order imposing visa bans on 19 countries. Admissions counselors report that rumors of further expansions to that list spooked applicants, even those not directly affected.

The message to students has been mixed, and many are choosing safer bets.

Examples from applicants:
– One Indian student admitted to UC Davis postponed arrival over fears of visa delays and possible deportation risk.
– A Chinese student with a funded U.S. PhD offer enrolled in the U.K. instead, citing anxiety about research funding and long-term permission to stay.
– “Except one of my professors, all of them suggested that if I have a non‑US option, I should think about it carefully,” a student said.

For those still considering the United States, official instructions for student visas remain available on the U.S. Department of State website; applicants can review steps and documentation through the State Department’s Student Visa page. But when students hear from friends about appointment backlogs or see headlines about visa bans, the reassurance of a website often loses out to stories that feel closer to home.

Financial fallout and campus choices

The revenue shock lands hardest at universities that depend on full-paying international students to fund operations and research.

• International students often do not receive institutional aid, so every lost seat drives a direct hit to tuition revenue.
• The impact compounds over time: fewer first-year students today means fewer second-year students next year, and so on.
• Consequences include strained lab staffing, reduced teaching assistant budgets, and pressures on niche graduate programs.

Research-heavy institutions face a double squeeze from enrollment declines and cuts in federal funding:

• Johns Hopkins eliminated more than 2,000 positions after an $800 million reduction in research support.
• Northwestern cut 425 roles.
• University of Southern California laid off more than 630 employees.

Credit-ratings agency Moody’s has flagged some campuses as rising credit risks, especially those whose graduate programs lean heavily on international tuition and external grants.

National trendlines back up campus reports:

• The Institute of International Education’s survey data show many colleges saw declines in new international student arrivals for Fall 2024.
• Government records indicate an 11% drop in total foreign student enrollment from March 2024 to March 2025.
• Enrollment specialists warn that up to 150,000 fewer international students could arrive in Fall 2025 if visa issuance doesn’t rebound quickly.

That projection would strain regional economies that count on student spending and university payrolls to support housing, dining, and local services.

Classroom, research, and diversity impacts

The human costs are visible in classrooms and labs. In STEM departments, international graduate students often:

• Drive research output.
• Help run core courses.
• Power collaborations with overseas partners.

When those students don’t arrive:
– Timelines slip and grant milestones are harder to meet.
– Faculty scramble to cover sections.
– Campus diversity suffers — fewer languages, perspectives, and academic approaches in discussions.

DePaul University’s pivot reflects this wider test. Administrators are weighing steps that could include consolidating low-enrollment programs, postponing technology upgrades, or delaying facilities projects. Faculty recognize the financial pressures but worry repeated rounds of budget cuts will sap morale and reduce the student experience during already fierce competition for domestic students.

Institutional responses and strategies

Universities across the country are exploring moves such as:

• Diversifying revenue through alumni giving drives, sponsorships, professional certificates, and short-format online programs
• Expanding recruitment in markets seen as less sensitive to U.S. policy swings
• Lobbying for clearer, more stable visa rules and faster processing, especially for returning students and spouses
• Building emergency funds to handle sudden drops in tuition from any single student group

Higher-education leaders note that no single step will fix the problem. Many institutions are also considering returning to basics:

1. Strengthen regional pipelines for domestic students.
2. Reset discount rates and align graduate program sizes with employer demand.
3. Adjust labor contracts and long-term commitments where possible — though these can be difficult due to preexisting obligations.

Student decision-making and market shifts

Students and families are watching closely. In markets like India and China:

• Parents track visa news daily and share appointment tips in WhatsApp groups.
• Many families now create backup plans, applying in parallel to the U.K., Australia, and Ireland.
• When offers arrive from multiple countries, students tend to choose places that promise clear rules, post-study work options, and fewer surprises.

Every rumor about interview pauses or new vetting checks nudges students to choose certainty over prestige.

For U.S. colleges, near-term actions include:

• Revisiting merit aid for international students still undecided.
• Offering spring starts to keep talent in the pipeline if fall arrivals fall short.
• Increasing employer outreach to reassure applicants about internships and work opportunities.
• Preparing international centers for heavier advising loads as students navigate delays and possible deferrals.

Broader questions and outlook

The broader question is whether the United States can reset the narrative in time for future cycles. University leaders argue a steady, transparent visa process is part of national competitiveness, especially in research fields where global collaboration drives breakthroughs.

Business groups warn that losing international graduate students weakens the talent pipeline for high-tech industries and startups. Advocates note that international students:

• Spend years in U.S. classrooms and labs.
• Pay rent, buy food, and bring family to visit.
• Serve as a local economic engine that supports neighborhoods near campus.

Still, the ground is shifting. With international enrollment weakening and the pool of domestic high school graduates flat in some regions, financial pressures once seen as temporary now look structural. The coming months will show whether targeted policy changes — such as restoring predictable visa interview capacity and reducing processing backlogs — can slow the slide before another application season begins.

For now, campuses like DePaul University are bracing for a lean year, planning carefully, and hoping the spring intake offers a modest rebound. In a sector built on long timelines, trust and steady flows of students remain the currency that matters most.