> This seems designed/intended to chase away immigrants.

No, it's designed to chase away non-immigrant student visa holders.

But it's part of a broader set of policies designed to make the US hostile to foreigners, whether current visa holders, non-immigrants visa applicants, or immigrant visa applicants.

Many universities are planning to have at least some of their classes be in-person this fall. My daughter was just admitted to Seattle U, and they expect her to be moving into her dorm in about a month. I am mostly expecting this to be cancelled, though.