> they dont seem to be reaping the benefits

"they" as in the USA or its people?

Germany has taxpayer-subsidized education even for foreign students. They may stay, the may leave. One of its views is that the time the student spent in the country helps foster cultural ties and understanding, and generates goodwill towards the country...

I suppose "goodwill" is hard to translate to cold hard cash, so America doesn't really like it ;-)