A Brexit could deter EU students from attending British universities and damage the economy, Remain supporters have said.
Universities UK claims its analysis suggests £3.7 billion is generated by EU students, thought to number around 125,000, adding it believes their spending on and off campus either supports or has helped create 34,250 full-time equivalent jobs throughout the country.
The organisation says its analysis takes into consideration spending including tuition fees, food bills and rent costs, among other things.
Universities UK added its assessment is predominantly based on 2011/12 student data and a report it compiled in 2014.
Jo Johnson, the Universities Minister, said: "It would be reckless to cut ourselves off from the rich sources of EU funding, the access to valuable shared research facilities and the close institutional ties that provide so many opportunities to British students and academics.
"UK students benefit from their ability to study across the EU, while EU students generate billions for the UK economy, support thousands of jobs and enrich university life."
Dame Julia Goodfellow, Universities UK president and University of Kent vice-chancellor, added: "Leaving the EU and putting up barriers to work and study makes it more likely that European students and researchers will choose to go elsewhere, strengthening our competitors and weakening the UK's universities."