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Foreign students’ contribution to US economy up $1 bn to $14.5 bn

Foreign students’ contribution to US economy up $1 bn to $14.5 bn
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First Published: Mon, Nov 12 2007. 11 27 PM IST

Updated: Mon, Nov 12 2007. 11 27 PM IST
While foreign students at American colleges and universities are most often singled out for their scientific and cultural contributions, their growing numbers help make them an increasingly important economic force as well, according to a new report from the Institute of International Education. The report, Open Doors 2007, also says that India remained the country that sent the most students to the US in 2006-07.
In the 2006-07 school year, the report found, international students’ net contribution to the US economy was nearly $14.5 billion (Rs56,985 crore)—up a billion dollars from the previous year, the largest annual increase to date.
“These are foreign people buying an American product, and the department of commerce says international education is our fifth largest service export, bigger than medical services,” said Allan E. Goodman, president of the institute, a non-profit organization that promotes international study. “It’s a huge factor in a lot of cities, including New York, where international students contribute about $1.5 billion, more than the Yankees, the Mets, the Rangers, the Knicks, and the Giants combined,” he added, referring to the various sports teams that make the city their home.
The number of foreign students in American institutions of higher education, from community college to graduate school, increased 3% over the previous school year, to 582,984, the report found. This followed three years of declines, and brought the total back to almost exactly the number of students that came to the US for the 2001-02 year, just before the 11 September attacks.
Those enrolling in the US for the first time surged 10% last year, a statistic considered important because those students are likely to study in the US for several years.
With 83,833 students, a 10% increase over the previous year, India remained the place of origin for the highest number of international students in the US. And China remained in second place.
For several years, these two countries sent the most students here, together accounting for more than a quarter of last year’s international students. Most experts expect the numbers to continue to grow. “Next to water, the biggest shortage in the world today is probably higher education,” said Goodman, adding that only the US could absorb the demand.
Overall, foreign students spent more than $20 billion in 2006-07, about half on tuition and fees and half on living expenses.
The report estimated that $14.5 billion came from the students’ home countries, mostly from personal and family sources. According to the report, which was largely financed by the state department and is being officially released Tuesday, fewer than a third got their primary funding from US sources.
The economic contributions grew so quickly last year because of tuition increases, Goodman said, and because more foreign students were in expensive certificate programmes that offer few scholarships.
The economic impact of the international students was provided by Nafsa: Association of International Educators, based on the institute’s international student data, and made part of the report.
Saudi Arabia sent more than twice as many students here in 2006-07 as it did the previous year; the number of Japanese students declined 9%.
The University of Southern California and Columbia University had the most foreign students last year, with New York University in third place.
Graduate students are half the international enrolment, but in the last six years, community college students have generally been the fastest growing segment.
The most popular fields of study for international students in the US in 2006-07 were business and management (preferred by 18% of students), engineering (15%), physical and life sciences (9%), social sciences (8%), mathematics and computer science (8%), and fine and applied arts (5%).
Seema Hakhu Kachru of PTI contributed to this story from Houston.
©2007/THE NEW YORK TIMES
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First Published: Mon, Nov 12 2007. 11 27 PM IST
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