A growing number of financially distressed private colleges in the United States now face the threat of closure following new visa restrictions introduced by President Donald Trump’s administration. These measures, which include limits on student visas and heightened scrutiny for international applicants, have placed immense pressure on 16 small institutions that rely heavily on international student enrollment to stay afloat.

These colleges depend on foreign students for at least one-third of their total enrollment, and in many cases, generate more than half of their operating income through tuition fees. Without steady inflows of full-paying international students, many of these schools may soon find it impossible to maintain their operations.

Financial Fragility Exposed

Each of the 16 institutions at risk had already earned low ratings for long-term stability, receiving a C+ or worse on recent national assessments of financial health. These ratings indicate limited reserves, narrow revenue streams, and high debt loads—factors that make them especially vulnerable to abrupt changes in enrollment.

Now, the loss of their most dependable funding source—tuition from foreign students—could trigger an existential crisis. Many of these schools had increased their international outreach in recent years, betting that overseas enrollment could offset declines in domestic student numbers.

Some schools, like Harrisburg University and Hult International Business School, count international students as more than 75% of their total population. St. Francis College in Brooklyn, New York, increased its foreign student numbers threefold in just one year and even sold its campus for $160 million to cover shortfalls. However, even with major cost-cutting and asset sales, auditors still questioned the school’s long-term survival in a mid-2024 financial review.

Schools Most at Risk

The institutions flagged as being in the danger zone meet three specific criteria: more than 33% international enrollment, over 50% of revenue from tuition and fees, and poor financial health grades. These are:

• Harrisburg University of Science and Technology, Pennsylvania

• Hult International Business School, Massachusetts

• Maharishi International University, Iowa

• New England College, New Hampshire

• Manhattan School of Music, New York

• Campbellsville University, Kentucky

• Stevens Institute of Technology, New Jersey

• Illinois Institute of Technology, Illinois

• California College of the Arts, California

• The New School, New York

• University of New Haven, Connecticut

• University of Bridgeport, Connecticut

• Saint Peter’s University, New Jersey

• Lindsey Wilson College, Kentucky

• Missouri Valley College, Missouri

• St. Francis College, New York

These institutions enroll thousands of students, with international attendees forming the backbone of many graduate programs. Losing this demographic could result in immediate financial collapse for several schools on the list.

Policy Changes Fuel the Crisis

The Trump administration’s recent actions include suspending new interviews for F‑1 and J‑1 student visa applicants, limiting visa access for nationals from countries such as Iran, Somalia, and Sudan, and revoking the visas of more than 1,400 students in April 2025.

In a particularly high-profile move, federal authorities temporarily stripped a top university of its right to enroll foreign students after campus protests against Middle East policies. While a court order later restored that right, the situation highlighted the unpredictability facing colleges that rely heavily on foreign enrollment.

In June 2025, visa services resumed after a one-month pause—but with stricter application requirements. All applicants must now submit their social media accounts for detailed background screening, leading to longer delays and increased rejections.

Broader Impact on Higher Education

These changes ripple far beyond the 16 schools identified. Colleges across the country—particularly those that charge high tuition and offer limited aid—have come to depend on international students, who often pay full price. In recent years, as domestic enrollment dropped, foreign students became a lifeline for many institutions.

Nationwide, international students contributed nearly $44 billion to the U.S. economy in the previous academic year and supported hundreds of thousands of jobs in higher education, housing, and retail. Major states like California, Texas, New York, and Illinois lead in foreign student presence and have already reported declines in enrollment tied to visa concerns.

With tougher rules in place, applications from international students fell sharply in 2025, especially at the graduate level. Programs in science, technology, engineering, and mathematics—fields in which foreign students often dominate—saw some of the steepest drops.

Legal and Political Fallout

The escalation in visa enforcement has led to growing resistance from universities and advocacy groups. After mass revocations of student visas, some colleges pursued legal remedies, arguing that the federal government had overstepped its authority. Several lawsuits are pending, challenging both the process and the lack of transparency.

Beyond legal battles, the new rules have sparked diplomatic tensions with foreign governments, many of which view the restrictions as discriminatory. Countries with large student populations in the U.S. are urging their citizens to explore alternatives, including Canada, the United Kingdom, and Australia, which have more accommodating visa policies.

Meanwhile, institutions that once competed fiercely to attract international talent are now struggling to reassure applicants that they will be welcomed and protected if they choose to study in the United States.

A Tipping Point for Private Colleges

The 16 schools most exposed to this crisis now face limited options. Unlike public universities, which can rely on state funding, private colleges depend almost entirely on tuition revenue. Without international students, many will need to implement severe austerity measures—layoffs, program eliminations, and even mergers—to survive.

In some cases, bankruptcy or closure may be the only path forward. Education analysts predict that dozens of small colleges may close within the next five years if current trends continue. The combination of shrinking domestic enrollment, growing financial pressure, and restricted access to international markets creates a perfect storm.

Paths to Survival

To navigate this storm, at-risk colleges will need to act quickly and decisively. Possible strategies include:

• Diversifying Enrollment Sources: Colleges can expand online offerings, attract nontraditional students, and target underrepresented domestic populations.

• Exploring International Partnerships: Creating joint programs with overseas universities may help retain foreign students via remote or hybrid learning models.

• Seeking Donor Support: Alumni and philanthropic foundations may be asked to provide emergency funding or support capital campaigns.

• Pursuing Mergers: Combining operations with more stable institutions may preserve academic offerings and administrative functions.

Some schools have already started adopting these approaches, though success remains uncertain.

Conclusion

The latest visa restrictions introduced by the U.S. government have intensified a brewing crisis in American higher education. For private institutions that rely heavily on international enrollment, the impact could be catastrophic.

Sixteen colleges now face the prospect of financial ruin, not because of declining academic quality, but due to external policy shifts that have undermined their business models. Without immediate action and support, many of these schools may not survive the coming academic year.

As the broader implications unfold, the American education system may find itself at a crossroads—forced to reimagine how it sustains itself in a world where global talent is increasingly mobile and selective.