US MBA dream fades for international students

 

The allure of a top-tier US Master of Business Administration (MBA) degree is losing its shine for many international students, as American business schools reduce their intake of overseas applicants and post-graduation job prospects become increasingly uncertain, Bloomberg reports.

 

The US has long been considered a global hub for business education, attracting ambitious students from around the world. Historically, international students have comprised a significant portion of US MBA cohorts, representing a crucial revenue stream for universities.  

 

Indeed, 61% of applicants for 2026 business-administration programmes (which commenced last autumn) were from overseas, according to the US Graduate Management Admission Council.

 

However, a shift is under way. US business schools are reducing the number of international students they admit, favouring domestic candidates instead. This comes amid broader policy changes affecting immigration, reductions in US foreign aid, and stricter visa requirements.

 

Significant reductions in international student numbers have been observed at institutions such as the Scheller College of Business at the Georgia Institute of Technology, where overseas-student intake has fallen by more than a third.

 

Prestigious schools including the Tepper School of Business at Carnegie Mellon University in Pennsylvania, the Darden School of Business at the University of Virginia, and the Booth School of Business at the University of Chicago have also made significant cuts to their international intake.  

 

 

 

At Georgetown University’s McDonough School of Business in Washington, DC, and Indiana University’s Kelley School of Business, the proportion of international students, which was as high as 59% in some programmes in 2023, has also fallen significantly.

 

This decline raises concerns about the impact on US business education. The diverse perspectives offered by international students, who bring a wealth of different business, cultural and economic experiences, are seen as invaluable in the collaborative learning environment of MBA programmes.

 

Furthermore, these changes may threaten the competitiveness of US business schools on the global stage, as institutions in Europe and Asia, such as INSEAD, London Business School, universities in Singapore, and Tsinghua University in China, become more attractive alternatives.

 

The knock-on effect could extend to the US job market, which relies on a pipeline of highly skilled graduates, many of whom are international students who choose to stay and work in the US after completing their studies, particularly in business, technology and innovation.

 

Adding to the uncertainty, employment opportunities for international graduates are also becoming less secure. The Optional Practical Training (OPT) programme, which allows international students to work in the US for up to three years after graduation, faces potential restrictions.

 

The future of temporary work visas such as the H-1B is also a politically charged issue, with strong opinions on both sides. While some, such as Elon Musk, argue for maintaining these visas to attract global talent, others contend they contribute to job displacement for American workers.
 

 

 

Peter Johnson, former assistant dean of the MBA programme at the University of California, Berkeley, highlights the potential problems for business schools if the OPT programme is limited. 

 

He notes that the STEM extension within the OPT programme, allowing graduates in science, technology, engineering and mathematics to remain in the US for longer, is a key incentive for international students.

 

"If the US abolishes the STEM policy for international students, it will directly impact their job opportunities," Johnson says. "Many international students may choose to pursue MBAs in other countries or forgo further education altogether."

 

MBA admissions consultants are already seeing the impact of this uncertainty. 

 

Barbara Coward recounts how an Indian client, concerned about potential restrictions to the OPT programme, identified INSEAD and London Business School as his preferred alternatives.

 

While the future of the OPT programme remains unclear, and immigration policy continues to be a subject of intense debate, the message is clear: The path to a US MBA, and subsequent employment in the US, is becoming increasingly complex for international students. 

 

This uncertainty could open doors for other countries, such as Canada, the UK, Singapore and China, to attract talented individuals seeking MBA qualifications.