International students and their dependents contribute more than $12 billion a year to the U.S. economy, yet for institutions of higher education, the greatest gains lie not in dollar amounts but in new insights and perspectives. As international students enter U.S. colleges and universities, they bring with them a wealth of curricular and cocurricular benefits that, if accessed, can substantially contribute to achieving an institution's educational goals. International students who stay in the United States add to the country's intellectual capital, while those who return to their home country tend to take with them a positive regard toward the United States. However, in a case study that the author and Charles Rice recently conducted, they uncovered tremendous discrimination against international students. Their study revealed that students from the Middle East, Africa, East Asia, Latin America, and India endured far greater difficulties in U.S. institutions than students from Canada and Europe. They call this discrimination "neo-racism", which they suggest is attributable to skin color as well as culture, national origin, and relationships between countries. As students of color in the United States and as foreigners, international students, they discovered, are subject not only to racism, based solely on race, but also to neo-racism. They contend that neo-racism occurs in contexts ranging from political regulations to educational settings. Their study revealed neo-racism in the form of less-than-objective academic evaluations; loss of employment or an inability to obtain a job; difficulty in forming interpersonal relationships with instructors, advisors, and peers; negative stereotypes and inaccurate portrayals of one's culture; negative comments about foreign accents; and so on. It is necessary that educators must combat neo-racism and consider their important responsibility for improving foreign relations and for providing a quality experience for international students. The onus is on educators, administrators, and domestic students to encourage genuine and positive international exchange within the classroom and abroad. The benefits will accrue to all of higher education and to individuals across the globe. (Contains 3 notes.)