While the United States of America attracts Indian students, those deciding to study there are now placing greater emphasis on the financial costs versus the potential future benefits. According to the United States of America Department of Homeland Security’s ‘Student and Exchange Visitor Information System‘ (SEVIS), the number of active Indian students in the U.S. as of October 2026 stood at 316,893, a 13.5% decline from the 366,258 recorded the previous year.
This decline was particularly pronounced at the master’s level, where the number of Indian students fell by 20.1%, from 292,929 to 234,034. In contrast, the number of doctoral (PhD) students rose by 45.9% during the same period, increasing from 28,609 to 41,729.
The total number of international students in the United States of America also saw a 7.1% decline, dropping from 1,283,240 in October 2025 to 1,192,572 in October 2026. Nevertheless, India remains the leading country of origin for international students, having surpassed China. The number of students from China fell by 10.2%, now standing at 220,157.
These figures represent active SEVIS records at a specific point in time. They encompass not only newly enrolled students but also graduate students currently participating in ‘Optional Practical Training’ (OPT).
Funding and Affordability Shape Study Choices
These shifting trends indicate that students have become more cautious in selecting their courses. When making decisions, they are placing greater emphasis on the cost of education, funding opportunities, and career outcomes.
The founder and CEO of ‘University Living ‘ notes that rising tuition fees and living expenses, coupled with uncertainty regarding post-study employment, have made students and their families more wary of the financial burden associated with studying abroad. He adds, “The growing interest in doctoral programs may be attributed to their specific funding structures.”
Unlike many self-funded Master’s programs, students pursuing a PhD at American universities may receive tuition waivers, research assistantships, and stipends. Such opportunities can significantly alleviate the financial burden, particularly in fields like artificial intelligence, engineering, biotechnology, and the advanced sciences.
He explains that students no longer look solely at university rankings; they now carefully evaluate funding opportunities, the total cost of education, and realistic career prospects. He emphasises that when deciding to study abroad, it is crucial to account for not just tuition fees, but also the costs of accommodation, food, and travel.
Calculating Costs is Now Essential for the ‘United States of America Dream’
The Senior Vice President of Strategic Partnerships and Growth at ‘Manifest Global ‘ observes that Indian students are not abandoning the idea of heading to the United States of America; rather, they are critically assessing whether the financial investment required is truly worthwhile. “Indian students are not abandoning the ‘American Dream,'” he said. “They are simply questioning whether the price they have to pay for it is justified.”
He pointed out a significant economic disparity between a ‘funded PhD, which includes a stipend and research opportunities and a master’s degree that could leave families burdened with debt for years. According to him, the mere prestige of a university or the global recognition of a degree is no longer enough to convince families to make a substantial financial investment; they now want to know what they will get in return.
However, the Senior Director for South Asia at Acumen, argues that this decline should not be interpreted as a waning interest in American higher education.
“The United States of America remains a preferred destination for Indian students,” she stated, citing the exceptional academic quality of its institutions, globally recognised degrees, a robust research ecosystem, and diverse educational and career opportunities. She added that the growing number of students in doctoral programs indicates that Indian students remain keen on research opportunities in the United States of America, even if their approach to selecting programs has evolved.
Students are Also Exploring Other Alternatives
According to the CEO of Fateh Education, shifting priorities have led students to consider other options. For instance, they are looking at countries like Ireland for research-focused studies. “Ireland has developed a strong research and innovation ecosystem, particularly in STEM fields such as artificial intelligence, life sciences, healthcare, and advanced technology,” he noted.
Research centers there foster collaboration between academia and industry, while funded doctoral opportunities can make research-based education more financially viable. He stated, “For Indian students, the decision is no longer just about choosing a country or a degree; it is about finding a path that offers academic depth, essential expertise, and a sustainable, long-term return on their investment.”
“For Indian students,” he said, “this decision is no longer limited to merely choosing a country or a degree; rather, it is about finding a path that offers academic depth and essential expertise, while also providing a sustainable, long-term return on their investment.”
