Fewer International MBA Students Attending U.S. Business Schools
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Here's your Money Briefing for Friday, November 6th. I'm J.R. Whelan for The Wall Street Journal. Each year, millions of people worldwide pursue a master's degree in business. And for international students, the U.S. is one of the most popular destinations. But the pandemic is forcing many to look for their MBA elsewhere.
While applications go up during an economic downturn, it's been harder for those students to get to the U.S. There's been a lot of visa processing problems. Just general travel is frowned upon at the moment.
How has the COVID-19 pandemic affected international MBA enrollment at U.S. business schools?
So it's been a little bit more tricky for those students to get here.
That's our reporter Patrick Thomas. Coming up, he'll explain how U.S. business schools are grappling with lower enrollment and discuss the role that cost can play in MBA students' decisions. That's after the break.
International students traditionally account for a big chunk of the enrollment at U.S. business schools, but the pandemic is forcing many of them to revise their plans for getting an MBA. Our reporter Patrick Thomas has been looking into this, and he joins us now. Patrick, thanks for being with us.
Thanks for having me.
So pandemic or no pandemic, lots of people see MBA programs as, you know, a key to getting a leg up in their pursuit of a career.
Yeah, especially the data we have so far with applications shows there's still strong interest for top programs. A lot of students still see the value in management education and what it can do for salaries and the jump it can give you in your career, especially for people in their mid to late 20s. The attraction is definitely still there and it's really magnified in economic downturn. If you get laid off or furloughed, So that's for a lot of people a way to, one, get out of the job market for a little while, and it provides a nice career boost.
What kind of a shift in enrollment have U.S. schools seen since the onset of the pandemic?
Why are visa processing and travel restrictions preventing international students from coming to the U.S.?
The big trick for U.S. schools have been international students because while applications are up, we're not quite sure yet what's going to happen, how international students are going to fare coming to the U.S. A lot of schools, Wharton, Berkeley, Michigan, they've all reported lower international student numbers because we're in a pandemic. And while applications go up during an economic downturn, it's been harder for those students to get to the U.S. There's been a lot of visa processing problems, just general travel is frowned upon at the moment. So it's been a little bit more tricky for those students to get here.
Now, why are international students of particular value to U.S. schools?
So a lot of schools, especially in the last 20 years, really rely on international students for their bottom line. It's a really key element. And it made up last year about 40% of all applicants applications to U.S. business schools. So it's a huge portion of the students that apply. And as you can see from the numbers from even last year, their incoming classes, they made up 30 to 40 percent in some of those classes. And international students often pay full tuition. They pay full freight compared to domestic students. So that's another key drive. They're a key driver of business schools revenue streams. So they're very important. And And losing them is a big deal, especially for your schools that are not Harvard or Wharton that can't really afford to go without them.
And beyond the pandemic, what factors are discouraging overseas students from coming to the U.S.?
Well, one of the big trends that have been happening over the last few years has been just the change in immigration policies in the U.S. The Trump administration has signaled that they wanted to crack down on student visas, and that's spooked a lot of students from Europe and from Asia, specifically China. that take issue with that rhetoric and are uncertain about, okay, if I go to this U.S. school, am I going to be able to stay here and look for a job afterwards? If they study international, they want to stay international. And we've seen some pretty big declines over the past couple of years in international students.
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