The Economic Benefits of International Education to the United States: A Statistical Analysis

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1 The Economic Benefits of International Education to the United States: A Statistical Analysis NAFSA estimates that foreign students and their dependents contributed more than $12.87 billion to the U.S. economy during the academic year. This conservative figure is based on tuition figures from the College Board, enrollment figures from the Institute of International Education's Open Doors 2004 report, living expenses calculated from College Board figures and analysis of the data by Lynn Schoch and Jason Baumgartner at Indiana University Bloomington s Office of International Services. NAFSA's annual Economic Impact Statements estimate the amount of money foreign students bring to the U.S. to support their education. This report does not rely on a multiplier effect. Although this might provide a more accurate estimate of actual economic impact, there is no consensus on the appropriate size of such a multiplier. Along with our partners at the Institute of International Education, the College Board, and Indiana University, we are committed to continuing efforts to improve our data and methodology. By any measure, international education makes a significant contribution to the U.S. economy. Important Data on International Education Exchange to the United States for the Academic Year: 572,509 foreign students studied in the United States, approximately 4.6 percent of total enrollment in U.S. colleges and universities. They brought more than $12.87 billion into the U.S. economy. The total net contribution to the U.S. economy from international students increased negligibly (less than.1 percent) from the previous year, a result of a 2.4% decline in foreign student numbers, offset by inflation and a slight increase in the overall level of U.S. financial support. The top ten countries of origin of foreign students in the United States were (in descending order): India, China, Republic of Korea, Japan, Canada, Taiwan, Mexico, Turkey, Thailand and Indonesia. University of Southern California hosted the largest number of foreign students followed by Columbia University, Purdue University, New York University and University of Texas at Austin. The New York and Los Angeles metropolitan areas led the nation in numbers of foreign students with 52,424 and 35,062 respectively. The Boston metropolitan area ranked third with 24,266 students. Business and management, engineering, and mathematics and computer science continued to be the top fields of study for foreign students in the United States. (Enrollment figures from the Institute of International Education s Open Doors 2004 report, found at:

2 Texas Total Number of Foreign Students: 45,150 Part 1: Net Contribution to State Economy by Foreign Students ( ) Contribution from Tuition and Fees to State Economy: $366,875,000 Contribution from Living Expenses: $703,917,000 Total Contribution by Foreign Students: $1,070,792,000 Less U.S. Support of 27.6% - $295,260,000 Plus Dependents' Living Expenses: + $34,352,000 Net Contribution to State Economy by Foreign Students and their Families: $809,884,000 Part 2: Contribution to State Economy by Foreign Students' Dependents ( ) Spouses' Contribution Percent of Married Students: Percent of Spouses in the U.S.: Number of Spouses in the U.S.: 5,633 Additional Expenses for a Spouse: (% of student living expenses) 85.0% 25.0% Spouses' Contribution: $23,211,000 (No. of spouses x 85% x 25% x student living expenses) 12.5% Children's Contribution Number of Couples in the U.S.: 5,633 Number of Children per Couple: 0.6 Number of Children in the U.S.: 3,380 Additional Expenses for a Child: (% of student living expenses) 20.0% Children's Contribution: $11,141,000 (No. of couples x.6 x 20% x student living expenses) Net Contribution to State Economy by Foreign Students' Dependents: $34,352,000 Part 3: Foreign Student Contribution from Tuition/Fees and Living Expenses ( ) Institution and City # of Foreign Students Tuition Living Expenses Less U.S. Total and Fees and Dependents Support Contribution (thousands) (thousands) (thousands) (thousands) Abilene Christian University, Abilene 193 $2,141.7 $3,336.5 $710.9 $4,767.3 Alvin Community College, Alvin 8 $15.1 $94.1 $6.1 $103.1 Amarillo College, Amarillo 14 $32.0 $116.6 $8.3 $140.3 Angelo State University, San Angelo 83 $665.9 $1,203.4 $233.4 $1,635.9 Austin College, Sherman 34 $551.6 $590.7 $522.0 $620.4 Austin Community College, Austin 996 $5,017.0 $11,717.9 $937.1 $15,797.9 Austin Presbyterian Theological Seminary, Austin 9 $49.4 $142.1 $66.5 $125.1 Baptist Missionary Association Theological Seminary, Jacksonville 9 $43.4 $111.7 $54.7 $100.4 Baylor College of Medicine, Houston 193 $2,101.3 $2,581.1 $3,036.9 $1,645.5 Baylor University, Waco 398 $6,178.6 $6,365.8 $2,949.7 $9,594.8 Blinn College, Brenham 199 $594.3 $2,494.5 $172.6 $2,916.3

3 Brazosport College, Lake Jackson 8 $18.6 $94.1 $6.3 $106.5 Central Texas College, Killeen 115 $258.8 $1,379.4 $91.4 $1,546.7 Cisco Junior College, Cisco 30 $64.9 $400.2 $26.0 $439.2 Clarendon College, Clarendon 10 $20.3 $134.6 $8.6 $146.2 Coastal Bend College, Beeville 18 $36.8 $166.7 $11.4 $192.2 College of the Mainland, Texas City 9 $19.3 $107.6 $7.1 $119.9 Collin County Community College District, Plano 680 $1,308.5 $8,000.2 $519.4 $8,789.2 Concordia University at Austin, Austin 13 $157.7 $202.9 $110.7 $249.9 Dallas Baptist University, Dallas 299 $2,913.2 $4,352.5 $941.5 $6,324.2 Dallas Christian College, Dallas 119 $623.7 $1,200.9 $636.9 $1,187.7 Del Mar College, Corpus Christi 64 $149.1 $753.0 $50.4 $851.7 DeVry University, Irving 45 $448.2 $734.6 $531.8 $651.0 East Texas Baptist University, Marshall 19 $165.0 $232.8 $127.5 $270.3 Eastfield College, Mesquite 28 $60.8 $329.4 $21.8 $368.5 El Centro College, Dallas 128 $286.5 $1,219.9 $84.1 $1,422.2 El Paso Community College, El Paso 432 $936.6 $5,167.0 $340.7 $5,762.9 Episcopal Theological Seminary of the Southwest, Austin 1 $8.2 $13.0 $7.4 $13.8 Frank Phillips College, Borger 17 $37.6 $167.5 $11.5 $193.6 Hardin-Simmons University, Abilene 5 $50.0 $85.2 $21.1 $114.1 Hill College, Hillsboro 78 $191.5 $886.9 $60.2 $1,018.2 Houston Baptist University, Houston 180 $1,822.2 $2,990.8 $609.6 $4,203.4 Houston Community College System, Houston 2,547 $8,676.8 $29,965.4 $2,160.2 $36,481.9 Howard College, Big Spring 2 $4.1 $23.3 $1.5 $25.8 Howard Payne University, Brownwood 11 $103.5 $147.7 $80.5 $170.7 Huston-Tillotson College, Austin 35 $229.1 $532.1 $346.4 $414.8 Jacksonville College, Jacksonville 16 $67.1 $163.5 $12.9 $217.7 Jarvis Christian College, Hawkins 5 $25.1 $99.8 $39.8 $85.1 Kilgore College, Kilgore 163 $371.4 $1,601.2 $110.2 $1,862.4 Lamar State College at Orange, Orange 2 $17.0 $19.1 $2.0 $34.0 Lamar University, Beaumont 613 $4,328.2 $12,374.3 $2,924.8 $13,777.7 Laredo Community College, Laredo 163 $332.2 $1,849.7 $121.8 $2,060.1 Lee College, Baytown 36 $81.6 $423.5 $28.2 $476.9 LeTourneau University, Longview 28 $359.6 $490.7 $153.4 $696.8 Lon Morris College, Jacksonville 20 $133.3 $311.3 $24.9 $419.7 Lubbock Christian University, Lubbock 13 $121.8 $221.3 $109.1 $234.0 McLennan Community College, Waco 42 $110.4 $502.3 $34.2 $578.6 McMurry University, Abilene 7 $78.8 $112.9 $61.4 $130.3 Midland College, Midland 54 $108.1 $734.6 $47.0 $795.7 Midwestern State University, Wichita Falls 403 $3,409.4 $6,268.0 $1,744.1 $7,933.3 Mountain View College, Dallas 24 $52.1 $228.7 $15.7 $265.2 Navarro College, Corsicana 309 $676.8 $3,789.3 $249.3 $4,216.9 North Harris Montgomery Community College, Houston 602 $1,465.2 $7,200.3 $483.8 $8,181.7 North Lake College, Irving 1,046 $2,272.0 $12,306.2 $813.7 $13,764.4 Northwood University: Texas Campus, Cedar Hill 34 $205.6 $423.3 $35.2 $593.6 Oblate School of Theology, San Antonio 61 $405.5 $681.6 $384.6 $702.5

4 Odessa College, Odessa 18 $42.8 $207.3 $14.0 $236.2 Our Lady of the Lake University of San Antonio, San Antonio 23 $275.8 $316.7 $84.3 $508.2 Palo Alto College, San Antonio 6 $21.3 $57.2 $4.4 $74.1 Panola College, Carthage 4 $7.9 $55.6 $3.5 $59.9 Paris Junior College, Paris 6 $14.3 $52.1 $3.7 $62.7 Prairie View A&M University, Prairie View 126 $1,237.6 $1,265.7 $380.4 $2,122.9 Ranger College, Ranger 3 $5.8 $31.4 $2.1 $35.1 Rice University, Houston 674 $11,447.9 $13,634.7 $10,454.4 $14,628.2 Richland College, Dallas 841 $1,826.7 $9,894.3 $654.3 $11,066.8 Sam Houston State University, Huntsville 203 $1,547.7 $3,128.2 $692.0 $3,983.9 San Antonio College, San Antonio 354 $1,386.4 $4,234.1 $314.4 $5,306.2 San Jacinto College - North Campus, Houston 70 $176.2 $810.0 $55.1 $931.1 Schreiner University, Kerrville 7 $86.4 $149.6 $107.6 $128.4 South Plains College, Levelland 63 $157.0 $646.7 $44.9 $758.9 Southern Methodist University, Dallas 871 $15,771.2 $17,340.8 $10,907.8 $22,204.2 Southwest College Institute for the Deaf, Big Spring 4 $43.5 $43.4 $18.0 $68.8 Southwest Texas Junior College, Uvalde 58 $131.4 $511.1 $35.9 $606.6 Southwest Texas State University, San Marcos 541 $4,765.0 $10,188.8 $2,246.0 $12,707.9 Southwestern Adventist University, Keene 125 $1,240.7 $1,527.1 $870.4 $1,897.3 Southwestern Assemblies of God University, Waxahachie Southwestern Baptist Theological Seminary, Fort Worth 20 $156.0 $331.4 $169.9 $ $1,980.1 $2,795.9 $1,677.1 $3,098.9 Southwestern University, Georgetown 10 $170.8 $201.8 $170.1 $202.4 St. Edward's University, Austin 129 $1,659.7 $1,722.5 $603.8 $2,778.4 St. Mary's University, San Antonio 152 $2,007.3 $3,090.3 $696.1 $4,401.5 St. Philip's College, San Antonio 14 $49.6 $164.7 $12.0 $202.4 Stephen F. Austin State University, Nacogdoches 134 $1,164.3 $2,397.6 $503.5 $3,058.4 Sul Ross State University, Alpine 18 $136.0 $254.2 $56.6 $333.6 Tarleton State University, Stephenville 39 $329.1 $619.9 $123.5 $825.4 Temple College, Temple 8 $26.9 $87.9 $6.4 $108.4 Texarkana College, Texarkana 11 $22.7 $129.4 $8.5 $143.6 Texas A&M International University, Laredo 261 $1,914.1 $4,748.7 $1,040.0 $5,622.8 Texas A&M University, College Station 3,815 $37,506.8 $81,792.3 $49,149.3 $70,149.8 Texas A&M University: Baylor College of Dentistry, Dallas 20 $140.9 $268.7 $12.8 $396.8 Texas A&M University-Commerce, Commerce 436 $3,685.2 $9,166.1 $3,644.7 $9,206.6 Texas A&M University-Corpus Christi, Corpus Christi 134 $999.9 $2,195.0 $520.3 $2,674.6 Texas A&M University-Galveston, Galveston 13 $122.0 $200.3 $140.6 $181.7 Texas A&M University-Kingsville, Kingsville 490 $3,296.7 $10,312.9 $3,908.9 $9,700.6 Texas Christian University, Fort Worth 415 $5,997.8 $7,244.0 $2,184.0 $11,057.8 Texas Lutheran University, Seguin 26 $366.9 $482.3 $272.2 $577.0 Texas Southern University, Houston 441 $3,809.0 $7,060.7 $1,624.7 $9,245.0 Texas State Technical College: Harlingen, Harlingen 6 $25.6 $71.3 $5.4 $91.5 Texas State Technical College: Waco, Waco 45 $191.8 $526.6 $40.2 $678.2

5 Texas Tech University, Lubbock 1,182 $9,576.4 $25,534.5 $14,214.9 $20,896.0 Texas Wesleyan University, Fort Worth 43 $427.9 $607.6 $186.5 $849.0 Texas Woman's University, Denton 346 $2,785.3 $4,550.0 $1,630.2 $5,705.1 Trinity University, San Antonio 36 $662.5 $732.7 $253.6 $1,141.5 Trinity Valley Community College, Athens 29 $65.7 $328.2 $22.0 $371.9 Tyler Junior College, Tyler 69 $179.8 $880.3 $59.2 $1,000.9 University of Dallas, Irving 455 $6,444.8 $7,016.7 $4,007.1 $9,454.4 University of Houston, Houston 3,368 $32,359.1 $75,778.9 $30,452.5 $77,685.5 University of Houston: Clear Lake, Houston 615 $4,413.3 $8,066.3 $2,105.5 $10,374.1 University of Houston: Downtown, Houston 262 $2,368.4 $2,602.2 $1,594.8 $3,375.9 University of Houston: Victoria, Victoria 109 $987.0 $1,433.8 $421.7 $1,999.1 University of Mary Hardin-Baylor, Belton 17 $164.3 $296.3 $56.1 $404.5 University of North Texas, Denton 2,142 $17,954.2 $33,143.4 $13,627.0 $37,470.6 University of St. Thomas, Houston 201 $2,531.6 $3,712.5 $994.0 $5,250.2 University of Texas at Arlington, Arlington 2,977 $24,901.2 $54,991.1 $29,441.0 $50,451.3 University of Texas at Austin, Austin 4,827 $42,341.0 $62,337.6 $38,492.4 $66,186.2 University of Texas at Brownsville, Brownsville 185 $1,507.5 $2,346.8 $486.1 $3,368.2 University of Texas at Dallas, Richardson 1,973 $20,882.5 $42,095.7 $16,936.7 $46,041.5 University of Texas at El Paso, El Paso 2,270 $17,920.6 $35,895.9 $8,684.0 $45,132.5 University of Texas at San Antonio, San Antonio 732 $6,176.4 $11,610.4 $2,714.5 $15,072.3 University of Texas at Tyler, Tyler 85 $780.3 $1,466.7 $404.8 $1,842.2 University of Texas Health Sci Ctr - San Antonio, San Antonio University of Texas Medical Branch at Galveston, Galveston 60 $552.0 $826.8 $891.2 $ $642.4 $1,357.1 $1,187.9 $811.6 University of Texas of the Permian Basin, Odessa 8 $64.8 $87.4 $21.4 $130.7 University of Texas Southwestern Medical Center at Dallas, Dallas 132 $836.3 $1,492.9 $1,501.2 $828.0 University of Texas: Pan American, Edinburg 502 $3,952.7 $8,086.1 $1,635.6 $10,403.2 University of Texas-Houston Health Science Center, Houston 329 $3,403.7 $4,217.0 $4,744.7 $2,876.0 University of the Incarnate Word, San Antonio 243 $3,142.2 $4,605.1 $1,192.3 $6,555.0 Victoria College, Victoria 9 $18.7 $105.9 $7.0 $117.6 Wayland Baptist University, Plainview 20 $150.2 $245.7 $50.6 $345.3 Weatherford College, Weatherford 37 $86.2 $398.4 $27.1 $457.6 West Texas A&M University, Canyon 210 $1,962.7 $3,252.5 $819.7 $4,395.5 Western Texas College, Snyder 22 $59.4 $242.4 $16.9 $284.9 Wharton County Junior College, Wharton 9 $26.5 $121.2 $8.2 $139.4

6 Methodology: How We Compute Economic Impact We define economic impact as the amount of money that foreign students collectively bring into the United States to ay for their education and to support themselves while they (and in some cases, their families) are here. The goal of our economic impact formulas is to use data already collected for other purposes to provide a reasonable estimate of the economic resources that foreign students import to the United States to support their education here each year. The data sets used for these reports come from two sources: 1. The Institute of International Education s Open Doors 2004 report, funded by the Department of State, provides numbers of foreign students at universities and colleges throughout the United States during the academic year. In many cases, this data provide separate totals for undergraduate, graduate, and non degree students. 2. The College Board provides cost figures for tuition, living, and miscellaneous expenses at U.S. institutions for the academic year. The extensive data provided by these two sources (which collect it directly from surveys of the institutions involved) allow us to make our estimates sensitive to differences between institutions. However, there are still areas where our estimates and formulas could be improved. For example, we compute economic impact only for students reported in Open Doors. Universities that do not provide information to the Institute of International Education are not represented. Also, enrollment reports represent peak enrollment, and not necessarily enrollment levels throughout the year. Tuition, fees, living expenses, and dollar estimates are derived from College Board data collected on surveys completed by institutions every year. We try to make our calculations sensitive not only to differing costs at institutions, but differing costs for ESL students, undergraduates, graduate students, and students on practical training. Students on Practical Training: We assume these students earn enough in their U.S. jobs to pay living and educational expenses for the year, and so import no funds for their support. Therefore, net economic impact of students in practical training is zero. Undergraduates and English Language Programs: The number of undergraduate students at an institution is specified by Open Doors data. College Board data provide undergraduate tuition and fee amounts, on-campus room and board amounts, and miscellaneous expenses. These categories are sometimes broken down into averages for international, out-of-state, flat rate, and in-state, students. When multiple averages are available, we choose averages in the order given above. Economic impact of an undergraduate equals tuition and fees, plus room and board, plus miscellaneous figured at 50 percent of room and board, less U.S. support. We assume: (1) that spring enrollment figures are the same as the fall figures reported, (2) that all students are

7 enrolled full time for two semesters or three quarters a year, and (3) that students live on campus for the full year. Miscellaneous expenses, enumerated in College Board data, average about 40 percent of room and board expenses. We use a 50 percent figure as an approximation that includes all extra expenses except for travel. The percentage of U.S. support for an undergraduate is based upon the institution type. For example, research institutions (based on Carnegie code) provide on average 10.7 percent support for undergraduates; community colleges provide 7.8 percent for undergraduates.