The issue of seeking higher education by U.S. citizens has been explored using the human capital theory model. This work extends this analysis by applying the human capital model to the decisions of foreign students to seek higher education in the U.S.

The theory suggests that foreign students will see. higher education in the U.S. if the net present value of doing so is greater than the value of remaining in their native country. In addition, the student's choice of field of study will be determined by differences in net present values. We extend the theory to include various non-pecuniary benefits and costs.

The model is tested through the use of primary data derived from a cross-sectional survey conducted by the author. This data allows for a calculation of expected net present values for · remaining at home, coming to the U.S. and staying various lengths of time, and becoming a permanent U.S. resident. The findings show that the pecuniary returns from U.S. education are indeed high for engineers, and also for students from India and Taiwan. The non-pecuniary cost associated with U.S. education varies according to a foreign student's country or region of origin. Family and social ties, political stability, and job opportunities in the native country significantly affect a foreign student's planned length of stay in the U.S. upon completion of studies.