Higher Education is America’s 10th Top Export, Injecting Over $40 Billion into the U.S. Economy

As the new academic year begins, millions of young adults are heading to college, including a significant number of international students. If current trends persist, around 1 million students from various countries will enroll in U.S. institutions of higher learning this year.

These international students make a substantial economic contribution, injecting over $40 billion into the U.S. economy and supporting more than 368,000 jobs. Their spending goes far beyond tuition, encompassing everything from housing rentals to food delivery services, and it’s nearing an all-time high.

Higher education has become one of America’s top exports, ranking as the 10th-leading export according to the U.S. Bureau of Economic Analysis. However, this “export” is, in reality, an import of international students who bring their financial resources into the U.S. economy.

Students from China, India, and South Korea are among the largest groups coming to the U.S., but young people from 221 countries and territories, including three from the small island nation of Tuvalu, also pursue degrees here.

Boston, home to over 50 colleges and universities, benefits immensely from its more than 60,000 international students, contributing approximately $2.7 billion to the region.

Greater Philadelphia also sees significant economic benefits, ranking fifth nationwide in attracting international students. With institutions like the University of Pennsylvania and the Curtis Institute of Music, the region expects nearly 17,000 international students in the fall of 2024.

While prestigious private schools draw many students, state universities and colleges are the primary destinations for international students. Of the top institutions enrolling these students last year, 32 were state colleges and universities, hosting over 240,000 students in total.

Among the leading public institutions, Arizona State University, the University of Illinois Urbana-Champaign, and the University of California, Berkeley stand out. Together, these schools attracted nearly $1.6 billion from international students, supporting around 16,900 jobs. Expanding this to the top 10 public universities, with four University of California campuses in the mix, the numbers rise to $4.5 billion and 47,900 jobs.

The economic impact isn’t confined to large institutions or cities. In smaller communities like Mankato, Minnesota, international students also play a crucial role. The Minnesota State University campus there welcomed around 1,700 international students in the 2022 academic year, who contributed $44.9 million to the local economy and supported 190 jobs. Many other small towns across the country experience similar benefits from hosting international students.

Community colleges, though experiencing a decline in international enrollment, still attract thousands of students from abroad. In 2023, nearly 53,600 international students attended community colleges, primarily from China, Vietnam, and Japan. These students generated about $1.5 billion and supported 6,620 jobs, particularly in states like Texas, California, and Florida.

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