Higher Education: Challenges in Attracting International Students to the United States and Implications for Global Competitiveness
Published: 2007-06-29T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: More international students obtain a higher education in the United States than in any other country, and they make valuable contributions while they are here. For those students returning home after their studies, such exchanges support federal public diplomacy efforts and can improve understanding among nations. International students have earned about one-third or more of all U.S. degrees at both the master's and doctoral levels in several of the science, technology, engineering, and mathematics fields. Yet recent trends, including a drop in international student enrollment in U.S. colleges and universities, and policy changes after September 11, 2001, have raised concerns about whether the United States will continue to attract talented international students to its universities. This testimony is based on ongoing and published GAO work. It includes themes from a September 2006 Comptroller General's forum on current trends in international student enrollment in the United States and abroad. Invitees to the forum included experts from the Congress, federal agencies, universities, research institutions, higher education organizations, and industry.
section_title: What GAO Found
paragraphs: GAO identified key issues that may affect the United States' ability to continue attracting the world's most talented international students to our universities and colleges. First, the global higher education landscape is changing and providing more alternatives for students, as other countries expand their educational capacity and technology-based distance learning opportunities increase. For example, enrollment in college-level distance education has nearly quadrupled since 1995. In addition, U.S. universities are establishing branch campuses in other countries and partnerships with international institutions, allowing international students to receive a U.S. education without leaving home. Greater competition has prompted some countries to offer courses in English and to expand their recruiting activities and incentives. Some countries also have developed strategic plans or offices focused on attracting international students. Second, the cost of obtaining a U.S. degree is among the highest in the world and rising, which may discourage international students. Average tuition in 2003 at public U.S. colleges and universities was second only to Australia. Moreover, tuition and associated costs continue to rise. While the effects of high and rising costs and related factors are difficult to estimate, some policymakers are concerned they may be discouraging international students from coming to the United States. Lastly, visa policies and procedures, tightened after September 11 to protect our national security, contributed to real and perceived barriers for international students. Post-September 11 changes included a requirement that almost all visa applicants be interviewed, affecting the number of visas issued and extending wait times for visas under certain circumstances.
section_title: What GAO Recommends
paragraphs: GAO has made several recommendations to strengthen the visa process in a way that reduces barriers for international students while balancing national security, and recent changes have improved the process. Processing times for certain security reviews have declined, and recent data show more student visas issued in the last few years. The Department of State also has taken steps to ease the burden on students, including expediting interviews and extending the length of time that some visa clearances are valid. We are continuing to study aspects of these issues. The United States must maintain an appropriate balance between protecting national security interests and ensuring our long-term competitiveness. Monitoring current trends and federal policies is essential to ensuring that the United States continues to obtain talented international students in the face of greater global competition.

section_title: Letter
paragraphs: I am pleased to be here today to discuss the challenges in attracting  international students to the United States and implications for global  competitiveness. Over 2 million students worldwide study outside of their  country of origin and make economic and foreign policy contributions to  their host countries. The United States has relied on undergraduate and  graduate students from other countries to support both economic and  foreign policy interests. International students have been important  sources of innovation and productivity in our increasingly knowledge- based economy, brought needed research and workforce skills, and  strengthened our labor force. For those students returning home after  their studies, such exchanges support federal public diplomacy efforts and  can improve understanding among nations.
The United States’ competitiveness in a global society must strike a proper  balance among protecting our national security interests, ensuring our  long-term competitiveness, and building bridges with other nations and  their people. It is also essential that we continue to develop our own  domestic capacity.
My testimony today touches on several of the key issues that may affect  the United States’ ability to continue attracting the world’s most talented  international students to our universities and colleges. My remarks today  are drawn primarily from previous GAO reports, and the framework for  discussing the issues is based on the perspectives and insights from the  Comptroller General’s forum held in September 2006 to discuss American  global competitiveness in higher education that included leaders from  government, universities, research institutions, higher education  organizations, and industry. The forum participants’ suggestions and  views reported here are not intended to reflect the views of GAO. All of  the work on which this testimony is based was performed in accordance  with generally accepted government auditing standards.
The global landscape of higher education is changing and providing  more alternatives for students, particularly as other countries expand  their educational capacity and technology-based distance learning  opportunities increase.
The cost of obtaining a degree in the United States is rising, which may  discourage international students from enrolling in our colleges and  universities.
Visa policies and procedures, tightened after September 11, 2001, to  protect our national security interests, may have contributed to real  and perceived barriers for international students seeking to enter the  country, but recent changes have helped ease barriers.
subsections: section_title: Background
paragraphs: The United States has historically sought to attract international students  to its colleges and universities. In recent years international students have  earned about one-third or more of all of the U.S. degrees at both the  master’s and doctoral levels in several of the science, technology,  engineering, and mathematics (STEM) fields. In academic year 2002-2003  alone, international students earned between 45 percent and 57 percent of  all the STEM degrees in the United States.
Several federal agencies coordinate efforts to attract and bring  international students to the United States and implement related  requirements. The Department of State (State) manages the student visa  application process, administers some student exchange programs, offers  grants to facilitate international exchanges, and provides information  promoting educational opportunities in the United States. State’s Bureau  of Educational and Cultural Affairs supports a global network of more  than 450 advising centers around the world that provide comprehensive  information about educational opportunities in the United States and  guidance on how to access those opportunities. In addition, the  Undersecretary for Public Diplomacy and Public Affairs has undertaken  ongoing efforts at outreach. For example, the office has organized several  delegations of American university presidents to travel overseas with the  Undersecretary in order to emphasize the United States’ interest in  welcoming international students. The Department of Homeland Security  enforces immigration laws and oversees applications for changes in  immigration status. It also administers the Student and Exchange Visitor  Information System (SEVIS), an Internet-based system that maintains data  on international students and exchange visitors before and during their  stay in the United States. Finally, the Department of Education  (Education) sponsors initiatives to encourage academic exchanges  between the United States and other countries, and the Department of  Commerce offers various activities to help U.S. educational institutions  market their programs abroad.
Students or exchange visitors interested in studying in the United States  must first be admitted to a U.S. school or university before starting the  visa process. Most full-time students enter the United States under  temporary visas, which usually permit them to stay for the duration of  their studies but may require renewals if they return home before their  studies are complete. In order to apply for a visa at a U.S. embassy or  consulate, students are required to submit a SEVIS -generated document  issued by a U.S. college or university or State-designated sponsor  organization when they apply for a visa. State advises student applicants  to apply early for a student or exchange visitor visa to make sure that  there is sufficient time to obtain an appointment for a visa interview and  for visa processing. Among the long-standing requirements for students  applying for a visa is that they demonstrate an “intent to return” to their  country of origin after they complete their studies. Graduates who wish to  stay and work in the United States beyond the time allowed by their  student visas generally need to receive approval for a change in status, for  example, through a temporary work visa or through permanent residency.
Although the United States continues to enroll more international students  than any other country, the number of international students enrolled in  U.S. higher education institutions leveled off and even dropped slightly  after 2001, as shown in figure 1. Figure 2 shows that the U.S. share of  international students worldwide decreased between 2000 and 2004.  According to the Institute of International Education, the decline in the  number of international students attending U.S. higher education  institutions between 2002 and 2003 was the first drop in over 30 years.  While some preliminary data suggest that international student enrollment  numbers may be rebounding, enrollments have yet to return to previous  levels. Nevertheless, the United States continues to be a prime study  destination for international students for numerous reasons: its high- quality higher education institutions, top-ranked graduate programs,  strong research funding, English-language curriculum, and a diverse  foreign-born faculty.
subsections: section_title: The Global Higher Education Landscape Is Providing More Options for Students
paragraphs: As worldwide demand for higher education continues to rise, changes in  the global higher education landscape have provided students with more  options. For example, technological advancements have spurred online  courses and even completely online programs that cater largely to  nontraditional students having work and family commitments. Between  1995 and 2001, enrollment in distance education at the college level nearly  quadrupled to over 3 million students, according to Education’s most  recent data.
In addition, international partnerships allow institutions to share faculty  members and facilitate study abroad opportunities. International branch  campuses now provide international students the opportunity to receive  an American education without leaving their home country.
Greater competition has prompted some countries to embrace instruction  in English and encouraged other systems to expand their recruiting  activities and incentives. Germany alone offers nearly 400 courses in  English that are geared toward international students. In terms of  recruiting, several of the participants during our global competitiveness  and higher education forum suggested that some countries appear more  committed to attracting international students than the United States or  are now competing with the United States for the best and the brightest  students. Japan offers the same subsidized tuition rates to international  students as domestic students, while Singapore offers all students tuition  grants covering up to 80 percent of tuition fees as long as they commit to  working in Singapore for 3 years after graduation. France and Japan have  also strengthened and expanded their scholarship programs for  international students. Some countries’ recruiting efforts include providing  scholarships to international students who may not be able to afford the  costs of obtaining a higher education degree in the United States.
In addition, some countries have also developed strategic plans or offices  that address efforts to attract international students. The German  Academic Exchange Service and EduFrance offer examples where  government agencies have been tasked with international student  recruitment. Participants at GAO’s forum on global competitiveness  expressed concerns that the United States lacked such a national strategy  for recruiting international students and emphasized a need to both  explore new sources of international students as well as cultivate U.S.  domestic capacity.
section_title: Rising Cost of U.S. Higher Education May Discourage Some International Students from Coming
paragraphs: As the cost of attending college in the United States rises, international  students may be discouraged from coming here to study. Higher education  in the United States ranks among the most expensive in the world. As  shown from OECD data in table 1, in 2003-2004 annual average tuition at  public U.S. colleges and universities ($4,587) was second only to Australia  ($5,289) and more than 2.5 times higher than Europe’s system with the  highest tuition fees, that of the United Kingdom. In terms of private higher  education providers, U.S. institutions ranked the highest at more than  $17,000 per year followed by Australia ($13,420), Italy ($3,992), and  Portugal ($3,803).
Moreover, student costs at U.S. colleges and universities continue to rise.  Figure 3 depicts average undergraduate tuition and room and board costs  between 1976 and 2004 for full-time students in degree-granting programs  at both 4-year public and private higher education institutions as well as  public 2-year institutions. Average costs for private colleges and  universities have risen the most since 1990, from $13,237 to $26,489.  However, in percentage terms the most growth took place at 4-year public  institutions; the change between 1990 and 2004 was approximately 118  percent compared to a 100 percent increase at 4-year privates and an 83  percent increase at 2-year institutions.
International students generally do not rely on U.S. federal funding to  study in the United States. According to the Institute of International  Education’s Open Doors 2004/2005 report, which provides data on  international student mobility patterns from U.S. universities, an estimated  71 percent of all international students reported their primary source of  funding coming from personal and family sources or other sources outside  of the United States. The effects of high and rising tuition and other factors  on international enrollment patterns are difficult to estimate, but some  policymakers are concerned that costs may be discouraging some  international students from coming to U.S. higher education institutions.
section_title: Changes in U.S. Visa Policies Contributed to Real and Perceived Barriers for International Students to Enter the Country, but Recent Improvements Have Helped Ease Some of the Burden
paragraphs: After September 11, State and Homeland Security, as well as other  agencies, took various steps to strengthen the visa process as an  antiterrorism tool. This has made the visa process more robust, but may  have contributed to real and perceived barriers for international students  as well as fueled perceptions that international students were not  welcome. Almost all visa applicants must now be interviewed by a  consular adjudicating officer at a U.S. embassy or post; this requirement  has both affected the number of visas issued and extended wait times for  visas under certain circumstances. We have reviewed aspects of the visa  process and have made many recommendations to strengthen the process  in a way that reduces barriers for international students while balancing  national security interests. In October 2002 we cited the need for a clear  policy on how to balance national security concerns with the desire to  facilitate legitimate travel when issuing visas and made several  recommendations to help improve the visa process. In 2003, we reported  that the Departments of State, Homeland Security, and Justice could more  effectively manage the visa process if they had clear and comprehensive  policies and procedures as well as increased agency coordination and  information sharing. In 2005 we reported on State’s management of J-1  exchange programs. Separately in 2005, we reported on the department’s  efforts to improve the time required to process visas for international  science students and scholars as well as others. In 2004 we found that the  time to adjudicate a visa depended largely on whether an applicant had to  undergo a Visas Mantis security check. Visas Mantis security checks target  foreigners who might be involved in violation or evasion of U.S. laws by  exporting goods, software, technology, or sensitive information, aiming to  prevent proliferation of weapons of mass destruction and conventional  weapons. Between January 2004 and June 2006, almost 28 percent of all  visa applications sent for Mantis security checks were for students or  exchange participants. State has acknowledged that long wait times may  discourage legitimate travel to the United States, potentially costing the  country billions of dollars in economic benefits, including from foreign  students, and adversely influencing foreign citizens’ impressions and  opinions of our nation.
Much progress has been made over the years with respect to the visa  process. Since 2002, State and other agencies have implemented many of  our recommendations aimed at strengthening the visa process as an  antiterrorism tool while improving processes to facilitate legitimate travel.   In particular, State has issued standard operating procedures, in  consultation with Homeland Security, to inform consular officers on  issues such as special security checks and student visa requirements. In  2005, we reported a significant decline in both Visas Mantis processing  times and cases pending more than 60 days. Recent visa data show an  increase in the number of student visas issued in the last few years.  According to State Department data, the combined student visa issuance  levels for fiscal year 2006 increased by about 20 percent from fiscal year  2002. See figure 4 for the issuance trends for individual student visa  categories.
Broader efforts to facilitate travel to the United States for international  students have also been implemented. State has expedited interviews for  students. In addition, the length of time that some visa clearances are valid  has been extended. In February 2007, State issued guidance to posts that  applicants should receive an appointment for a student visa interview  within 15 days or less. We are continuing to study aspect of these issues,  including visa delays and Visas Mantis security checks, which we will be  reporting on in the coming months.
section_title: Concluding Observations
paragraphs: The United States must maintain an appropriate balance between  protecting national security interests and ensuring our long-term  competitiveness. The United States has relied on undergraduate and  graduate students from other countries to support both economic and  foreign policy interests. Changes designed to protect national security in  the wake of September 11 may have contributed to real and perceived  barriers for international students, and the subsequent decline in  international enrollments raises concerns about the long-term  competitiveness of U.S. colleges and universities. Rising U.S. tuition costs  and growing higher education options worldwide further demonstrate that  the United States cannot take its position as the top destination for  international students for granted. While federal efforts to reduce barriers  for international students have helped, monitoring current trends and  federal policies is essential to ensuring that the United States continues to  obtain talented international students in the face of greater global  competition.
Mr. Chairman, this concludes my prepared statement. I would be happy to  respond to any questions you or other members of the subcommittees may  have at this time.
section_title: GAO Contacts
paragraphs: For further information regarding this testimony, please contact me at  (202) 512-7215. Individuals making key contributions to this testimony  include Sherri Doughty, Carlo Salerno, Marissa Jones, John Brummet,  Eugene Beye, Carmen Donohue, Eve Weisberg, Melissa Pickworth, and  Susannah Compton.
This is a work of the U.S. government and is not subject to copyright protection in the  United States. It may be reproduced and distributed in its entirety without further  permission from GAO. However, because this work may contain copyrighted images or  other material, permission from the copyright holder may be necessary if you wish to  reproduce this material separately.