The ramifications of this trend -- and the likely political responses, considering the current responses -- will be interesting (to say the least). My rough prognostication (tuned for the U.S.):

* Western leaders (the U.S. in particular) will see this as a threat to their technological/economic dominance.

* In response, the number of educational visas will be severely limited at some point.

* Universities dependent on foreign students paying full tuition, especially smaller ones, will find themselves suddenly (or not-so-suddenly) strapped for cash.

* These colleges will lobby against visa restrictions, prompting further criticism from nationalist/populist entities/organizations, who will seek additional restrictions on loans/funding for such universities.

* Within 10-30 years, the capital crunch will eventually force smaller universities to merge (if possible) or close altogether.

* The wave of closures further damages technological innovation, harming overall economic output.

* The economic downturn results in even further cuts to university/college funding, creating a vicious cycle that ends only when most small universities are gone, leaving only massive state universities and a few small niche/boutique universities catering to elites.

I'm sure it won't turn out exactly like that -- and besides, closing some of the more expensive universities may help bring tuitions down in general -- but given the current political climate, I see the situation only getting worse before it gets better.