B-schools brace for 16% drop in international student enrollment amid policy changes: Report

An average 16 percent drop in international student enrollment in business schools is expected for the 2025-26 academic year, owing to policy changes including visa restrictions, political status, and uncertainty over post-graduation work visa opportunities, as per an Association to Advance Collegiate Schools of Business (AACSB) report.

B-schools located in countries without such restrictions are going to benefit from the international student policy as they anticipate a 10% increase in enrollment, the Global Minds, Local Impact: A Case for Student Mobility report states.

In a survey held for 97 business schools from 27 countries, 67% of the management institutes reported that their country or territory had enacted policy or legal changes impacting international students within the past year, with 84% from the Americas. Among those hit hard by the policy shifts are United Kingdom (UK), Germany, United States (US).

On an average, MBA schools projected a 10 percent decline in student enrollment, with a median projected decrease of 6 percent. Among schools that reported undergoing policy or legal changes, the anticipated drop is more severe, with an average projected decline of 16 percent and a median decline of 12 percent.

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On the contrary, schools not experiencing such changes anticipated growth, with an average projected increase of 4 percent and a median increase of 10 percent in international enrollment, the report found.

Study Abroad: Visa policy top barrier

Among factors that pose challenges for an institution in attracting international students, visa policy emerged as the most significant barrier, cited by 94% schools globally. Political climate follows with 65% identifying it as a challenge, reflecting how political instability and hostility towards foreign nationals can impact student decisions.

Since many students consider the ability to work after postgraduation while choosing their study abroad destination, PG work policies become a major concern for at least 63% of the institutions in the world.

Other challenges include the cost of living (28%), safety concerns (25%), institutional reputation (11%), language barrier (5%). Only 15% found the tuition fee as a challenge, the survey revealed.

In response to the continuously evolving policy frameworks, business schools are implementing strategies to retain the international students. 56% of the institutions have shifted to domestic student markets while 39% have strengthened their partnerships with foreign institutions. 31% have increased their investments in transnational programmes and 29% have invested heavily in online learning. 24% looked back at their programme offerings and 8% revaluated admission criteria.