Foreign Policy Blogs

Economic Impact of International Students – Finding a Balance

NAFSA, the association of international educators, a released a report this week noting that “[f]oreign students and their dependents continue to make a significant contribution to local and state economies, spending $17.6 billion in the United States during the 2008- 2009 academic year…California, New York, and Texas welcomed the largest numbers of foreign students, and those states each saw a substantial benefit from the spending students and their families do on day-to-day necessities, as well as tuition and fees. ”  An excellent summary of the economic impact data can been accessed herewith the capability of seeing economic impact by state and congressional district.  NAFSA notes:

This conservative figure, $17.6 billion, is based on tuition figures from Wintergreen Orchard House, enrollment figures from the Institute of International Education’s Open Doors 2009 report, living expenses calculated from Wintergreen Orchard House figures, and analysis of the data by Jason Baumgartner at Indiana University – Bloomington’s Office of International Services.

There is no doubt that the attraction of international students to the U.S. is of great value for academic, economic and cultural reasons (to name but a few).   But with the economic downturn hitting states  – and therefore public universities – very hard, there is a temptation in U.S. state capitals to hike tuition for international students and use that mechanism to fill in budget gaps.  Last month the New York State Comptroller’s office issued a report arguing that State University of New York should charge out-of-state students nearly $8,500 more a semester so state taxpayers are not paying for these students to attend their public universities.  Last year officials in California argued for taking more international students so that their higher fees and tuition rates could be used to fill in budget gaps. This strategy undermines the long-term relationship U.S. public universities have with partner universities overseas and sends a message to both international and domestic audiences alike that the attraction of international students is merely a cash cow.   That message, combined with increased tuition and limited seats for in-state students has the potential to flame nativist fires.  So, we should be clear that international students add to our fragile state economies, but that fact should always be placed in the context of the overall value of international education – a value that accrues to all involved.

 

Author

James Ketterer

James Ketterer is Dean of International Studies at Bard College and Director of the Bard Globalization and International Affairs program. He previously served as Egypt Country Director for AMIDEAST, based in Cairo and before that as Vice Chancellor for Policy & Planning and Deputy Provost at the State University of New York (SUNY). In 2007-2008 he served on the staff of the Governor’s Commission on Higher Education. He previously served as Director of the SUNY Center for International Development.

Ketterer has extensive experience in technical assistance for democratization projects, international education, legislative development, elections, and policy analysis – with a focus on Africa and the Middle East. He has won and overseen projects funded by USAID, the Department for International Development (UK), the World Bank and the US State Department. He served on the National Security Council staff at the White House, as a policy analyst at the New York State Senate, a project officer with the Center for Legislative Development at the University at Albany, and as an international election specialist for the United Nations, the African-American Institute, and the Organization for Security and Cooperation in Europe. He is currently a Fellow at the Foreign Policy Association and has also held teaching positions in international politics at the New School for Social Research, Bard College, State University of New York at New Paltz, the University at Albany, Russell Sage College, and the College of Saint Rose.

Ketterer has lectured and written extensively on various issues for publications including the Washington Post, Middle East Report, the Washington Times, the Albany Times Union, and the Journal of Legislative Studies. He was a Boren National Security Educational Program Fellow at Johns Hopkins University and in Morocco, an International Graduate Rotary Scholar at the Bourguiba School of Languages in Tunisia, and studied Arabic at the King Fahd Advanced School of Translation in Morocco. He received his education at Johns Hopkins University, New York University and Fordham University.

Areas of focus: Public Diplomacy; Middle East; Africa; US Foreign Policy

Contributor to: Global Engagement