In the midst of an economic downturn, colleges and universities in the United States are finding themselves confronting economic difficulties. Many schools rely on endowments to help fund activities, programs, and expenses. The marked decrease in schools' endowments due to investment losses could potentially mean that many schools would need to cut programs and costs, as well as become more reliant on other sources of revenue to cover shortfalls. Foreign students have historically been an important source of revenue for colleges and universities because unlike many of their native counterparts, foreign students frequently do not receive financial aid from the university—particularly at the undergraduate level. Consequently, numerous college and university administrators will likely advocate that maintaining or increasing foreign student levels is an important element to remaining financially viable through their economic difficulties. Despite the financial justifications for admitting large numbers of foreign students, critics of foreign student admissions generally raise two objections. The first objection is that foreign students are potentially displacing United States citizens at top-tier institutions, thereby putting the United States labor force at a competitive disadvantage. Moreover, if these students are allowed to stay and become employed in the U.S. economy, critics argue, they displace U.S. citizens from employment opportunities. The second objection is that foreign students could potentially constitute a security risk. Although security systems for tracking foreign students have been implemented, critics will note that these systems have loopholes. Additionally, the historical record of terrorist exploitation of foreign student visas for many observers means that the categories could be subject to future attempted terrorist admissions to the United States. The tension over whether to legislate foreign student admissions levels is part of a broader set of competing policy agendas surrounding economic development and national security. Foreign students sit at the nexus of these competing policies due to their linkage to both the emerging labor force and their historical ties to security-based vulnerabilities. Thus, a potential issue for the 111 th Congress is whether foreign student visas should be numerically limited, or if they should remain uncapped. Additionally, Congress may need to consider whether it should legislate programs that either promote or deter additional admissions of foreign students to the United States. Since the Immigration Act of 1924, the United States has expressly permitted foreign students to study in U.S. institutions. Most foreign students are at least 18 years old and are enrolled in higher education programs. If they attend public high schools in the United States, the law requires that foreign students pay tuition, with some exceptions. It also bars the admission of foreign students for the purpose of attending public elementary schools. Although foreign students are also barred from receiving federal financial assistance, many are successful at gaining financial assistance from the colleges and universities they attend. Foreign students are generally considered to enrich cultural diversity of the educational experience for U.S. residents as well as enhance the reputation of U.S. universities as world-class institutions. Concerns have arisen in recent years that have caused Congress to take a new look at the Immigration and Nationality Act (INA) provisions that govern their admission. The September 11, 2001 terrorist attacks conducted by foreign nationals—including several terrorists on foreign student visas—raised a series of questions about foreign students in the United States, their rights and privileges, the extent to which the U.S. government monitors their presence in this country, and whether U.S. policy hampers the ability of domestic higher education institutions to attract foreign students. There are three main avenues for students from other countries to temporarily come to the United States to study, and each involves admission as a nonimmigrant. A nonimmigrant is an alien legally in the United States for a specific purpose and a temporary period of time. There are more than 20 major nonimmigrant visa categories, and they are commonly referred to by the letter that denotes their subsection in the law. The three visa categories generally used by foreign students are F visas for academic study; M visas for vocational study; and J visas for cultural exchange. The most common visa for foreign students is the F-1 visa. It is tailored for international students pursuing a full-time academic education. The F-1 student is generally admitted as a nonimmigrant for the period of the program of study, referred to as the duration of status. The law requires that the student have a foreign residence that they have no intention of abandoning. Their spouses and children may accompany them as F-2 nonimmigrants. To obtain an F-1 visa, prospective students also must demonstrate that they have met several criteria: They must be accepted by a school that has been approved by the Attorney General. They must document that they have sufficient funds or have made other arrangements to cover all of their expenses for 12 months. They must demonstrate that they have the scholastic preparation to pursue a full course of study for the academic level to which they wish to be admitted and must have a sufficient knowledge of English (or have made arrangements with the school for special tutoring, or study in a language the student knows). Once in the United States on an F visa, nonimmigrants are generally barred from off-campus employment. Exceptions are for extreme financial hardship that arises after arriving in the United States and for employment with an international organization. F students are permitted to engage in on-campus employment if the employment does not displace a U.S. resident. In addition, F students are permitted to work in practical training that relates to their degree program, such as paid research and teaching assistantships. An alien on an F visa who otherwise accepts employment violates the terms of the visa and is subject to removal and other penalties discussed later in this report. Foreign students are just one of many types of aliens who may enter the United States on a J-1 visa, sometimes referred to as the Fulbright program. Others admitted under this cultural exchange visa include scholars, professors, teachers, trainees, specialists, foreign medical graduates, international visitors, au pairs, and participants in student travel/work programs. Those seeking admission as a J-1 nonimmigrant must be participating in a cultural exchange program that the U.S. Department of State's Bureau of Educational and Cultural Affairs (BECA) has designated. They are admitted for the period of the program. Their spouses and children may accompany them as J-2 nonimmigrants. Responsible officers of the sponsoring organizations must be U.S. citizens. The programs that wish to sponsor J visas also must satisfy the following criteria: be a bona fide educational and cultural exchange program, with clearly defined purposes and objectives; have at least five exchange visitors annually; provide cross-cultural activities; be reciprocal whenever possible; if not sponsored by the government, have a minimum stay for participants of at least three weeks (except for those designated as "short term" scholars); provide information verifying the sponsoring program's legal status, citizenship, accreditation, and licensing; show that they are financially stable, able to meet the financial commitments of the program, and have funds for the J nonimmigrant's return airfare; ensure that the program is not to fill staff vacancies or adversely affect U.S. workers; assure that participants have accident insurance, including insurance for medical evacuations; and provide full details of the selection process, placement, evaluation, and supervision of participants. As with F visas, those seeking J visas must have a foreign residence they have no intention of abandoning. However, many of those with J visas have an additional foreign residency requirement in that they must return abroad for two years if they wish to adjust to any other nonimmigrant status or to become a legal permanent resident in the United States. This foreign residency requirement applies to J nonimmigrants who meet any of the three following conditions: An agency of the U.S. government or their home government financed in whole or in part—directly or indirectly—their participation in the program. The BECA designates their home country as clearly requiring the services or skills in the field they are pursuing. They are coming to the United States to receive graduate medical training. There are very few exceptions to the foreign residency requirement for J visa holders who meet any of these criteria—even J visa holders who marry U.S. citizens are required to return home for two years. Although many aliens with J-1 visas are permitted to work in the programs in which they are participating, the work restrictions for foreign students with a J-1 visa are similar to those for the F visa. Foreign students who wish to pursue a non-academic (e.g., vocational) course of study apply for an M visa. This visa is the least used of the foreign student visas. Much as the F students, those seeking an M visa must show that they have been accepted by an approved school, have the financial means to pay for tuition and expenses and otherwise support themselves for one year, and have the scholastic preparation and language skills appropriate for the course of study. Their spouses and children may accompany them as M-2 nonimmigrants. As with all of the student visa categories, they must have a foreign residence they have no intention of abandoning. Those with M visas are also barred from working in the United States, including in on-campus employment. Although most nonimmigrants are admitted with visas that have a precise expiration date, foreign postsecondary students are admitted for "duration of status," which lasts as long as they are full-time students or participating according to the terms of their exchange programs. It is difficult for DHS to know when foreign students have overstayed because the duration of status lacks a fixed termination date and schools, although required to report students who stop attending, have not been required until recently to systematically report data on the progress of the foreign student (see below). For many years, a foreign student was admitted for only one year and had to renew his or her visa each subsequent year for as long as he or she was enrolled. The former-INS then issued regulations in 1978 and 1981 allowing for visa validity periods longer than one year.