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The agency says Friday that guidance granting visa flexibility to international students only applies to those who were actively enrolled at a U.S. school on March 9.
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A federal judge announced on Tuesday that ICE has reached an agreement with schools that sued it over the rule change. The directive will now be rescinded nationwide.
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The Trump administration says it will ban international students in the fall if their education is online-only. Colleges and businesses say that decision could devastate the economy.