America Risks $400bn Economic Blow Under New Student Visa Policy
Photo: AP/Jerry Roberts
The United States could lose as much as $400 billion in annual economic output under a new policy introduced by the Trump administration restricting how long international students can remain in the country, a report by the Peterson Institute for International Economics (PIIE) has warned.
The rule, expected to take effect in September, replaces the long-standing “duration of status” system with a fixed stay of up to four years for most international students. Those wishing to continue their studies or remain for post-graduation work will be required to apply for an extension.
According to the report, the policy could discourage international students from choosing US universities, reducing the number of highly skilled graduates entering the American workforce, particularly in science, technology, engineering and mathematics (STEM).
The institute noted that foreign STEM graduates educated in the US play a critical role in driving innovation, filing patents at four times the rate of typical college graduates and launching high-growth startups at six times the rate of their US-born counterparts.
PIIE warned that if international student enrolment falls by one-third over time, the US economy could lose between $200 billion and $400 billion annually, while also suffering setbacks in innovation, entrepreneurship and long-term productivity.
The report added that higher education remains one of America’s biggest export industries, accounting for about five per cent of the country’s services exports.
Source: PUNCH Newspapers
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