Despite global volatility and economic uncertainty, overall student interest in studying abroad remains high among US students, with overall interest slightly surpassing 2024 levels, a new Terra Dotta survey has revealed.
And yet, universities “must go the extra mile” to showcase their duty of care and financial aid resources, which are important differentiators to attract US students amid the enrolment cliff, said Terra Dotta’s study abroad director David Nelson.
Overall, 76% of students said they hoped or planned to study abroad in 2025, a modest increase from the previous year’s 73%.
The UK was the most popular destination among 41% of students, followed by Australia, Spain, Italy and Ireland, revealing a notable rise in the popularity of English-speaking destinations.
Australia – favoured by just 5% of students in 2024 – was the preferred choice of 35% of students this year, likely reflecting the country’s full reopening after several years of pandemic restrictions, said Nelson.
Additionally, both the UK and Australia: “may be viewed by students as more stable options given ongoing geopolitical uncertainty,” he told The PIE News.
While one third of students said geopolitical issues would prevent them from participating altogether, over three-quarters indicated global conflicts such as those in Ukraine and Gaza would impact their interest in travelling abroad.
And yet, finances remained the main concern for 80% of students and nearly half of those not planning to study abroad said the cost prevented them from doing so.
The uptick of students’ financial concerns (from 67% to 80%) contrasts with the previous year, when cost concerns declined between 2023 and 2024 as students moved past the uncertainty of the Covid era.
According to Nelson: “This pattern may reflect renewed instability in financial markets, with students relying on family support that is now less certain due to broader economic challenges.”
Strikingly, 40% of students anticipated spending more than $10K for their chosen program in 2025.
Given the growing economic uncertainty and the high cost of studying abroad, easier access to financial aid information was the top request of 65% of students – a 50% increase since 2024.
While the highest proportion of students (36%) said they favoured a semester abroad, internships and short-term faculty led trips were also popular options, with Nelson highlighting the decline in traditional semester-long programs in favour of alternative options.
“This shift reflects a clear desire from students to gain direct professional experience while abroad as they view these opportunities as vehicles to build their professional skill set and enhance their resumes,” Nelson said.
Right now is one of the most important times to provide students with opportunities to broaden their perspectives
David Nelson, Terra Dotta
While 20% more students plan to pay for study abroad themselves compared to 2024, demand for financial aid remains high at about two-thirds of survey respondents.
Meanwhile, Terra Dotta advised institutions to focus on communicating the value of studying abroad early in the student journey, with over three-quarters of students saying they factored a school’s study abroad program into their college decisions.
The survey comes as US universities are facing a much reported on domestic enrolment cliff, with government figures showing undergraduate enrolment declining by more than two million between 2010 and 2022.
As visa restrictions and hostile policies towards international students take hold under the Trump administration, the number of overseas students at US institutions is also projected to fall, leaving institutions vulnerable to declining overall enrolments.
Against this backdrop: “Right now is one of the most important times to provide students with opportunities to broaden their perspectives, knowledge and intercultural skill sets,” said Nelson, emphasising the role of study abroad in fostering global awareness and empathy.
Elsewhere, the UK is gaining interest from degree students as well as those participating in study abroad, with the sector witnessing a marked increase in interest, as the other ‘big four’ destinations face visa challenges and political volatility.
