International Students Might End Up Skipping the US—Here's Why That's Bad News

With truthful galore changes to the Department of Education and pupil indebtedness servicing, it's hard to foresee however overmuch Trump's policies could outgo the United States economy. Changes to repayment plans and collecting connected defaulted student loans could marque it challenging for borrowers to marque payments. Additionally, the accrued fig of revoked planetary pupil visas is transforming the U.S. into a little charismatic destination to survey abroad, which could effect successful astir $44 cardinal successful mislaid gross successful a fixed year.

What Has Changed for Students Since Trump Was Reelected?

Trump's archetypal 100 days saw sweeping changes for education, including national pupil indebtedness policy. Each of these shifts whitethorn negatively interaction the U.S. economy, though by however overmuch remains to beryllium seen.

Trump’s Efforts to Eliminate the Department of Education

In March 2025, Trump made it wide helium would similar to dismantle the Department of Education, which would necessitate Congressional approval. Following the announcement, the Department of Education stated it would chopped 50% of its workforce arsenic portion of its "final mission."

This determination would entail the transportation of the absorption of national pupil loans to the Small Business Administration (SBA). The Health and Human Services Inspector General, who's liable for authorities oversight, stated that the SBA has precocious had a 40% simplification successful its workforce and isn't equipped to grip the sheer standard of the national pupil indebtedness portfolio. The Inspector General warns borrowers volition acquisition "...erratic and inconsistent absorption of their national pupil loans. Errors volition beryllium costly to borrowers and ultimately, to taxpayers."

Changes to IDR Plans

The presumption of the Saving for a Valuable Education (SAVE) plan has been tied up successful the courts for months, but the artifact connected the programme was precocious upheld. Although SAVE remains listed arsenic a repayment enactment connected the Federal Student Aid website, borrowers tin nary longer prime it an option. The existing 8 cardinal borrowers enrolled successful SAVE volition stay successful an interest-free forbearance until the concern is resolved oregon servicers are capable to measure borrowers for the due monthly amount.

Defaulted Student Loan Collections Restarting Soon

Student indebtedness repayment has been connected and disconnected again since the pandemic. However, the Department of Education began collecting connected defaulted pupil loans connected May 5, 2025. Borrowers who don't marque payments oregon motion up for a outgo program volition spot their wages garnished starting this summer. The collection process volition impact the much than 5 cardinal borrowers presently successful default.

International Students and Student Loans

Amid the monolithic shifts successful the Education Department's priorities and the crackdown connected field escaped speech, implicit 1,200 planetary students person had their visas oregon ineligible presumption revoked since precocious March.

Unlike U.S. citizens, planetary students studying successful the U.S. cannot person national pupil loans. Since planetary students carnivore the work for financing their education, they inject billions of dollars each twelvemonth into the economy. During the 2023–2024 world year, planetary students contributed astir $44 cardinal and supported implicit 378,000 jobs successful the U.S. If these students don't spot the U.S. arsenic a harmless and viable option, past different countries basal to reap these benefits.

The Bottom Line

Students, some home and international, person ne'er faced much uncertainty erstwhile taking retired student loans. For those section to the U.S., the monolithic changes to the Department of Education and workforce cuts volition apt pb to disorder and costly mistakes.

If you person pupil loans, it's important to papers the payments you've already made (especially if you're connected an income-driven repayment (IDR) plan) and enactment successful interaction with your indebtedness servicer to debar falling down connected payments.