US to impose $100 K fee on foreign students? Here's how Trump's new proposal shatters Indians H-1B dreams | Explained

This action could significantly diminish the attractiveness of obtaining higher education in the US for foreign students.

Several colleges rely on foreign students for their tuition revenue, while firms in the technology and finance industries have historically regarded graduates from US universities as a vital source of skilled labor.

The Wall Street Journal has reported that the administration is evaluating the possibility of associating the fee with the Optional Practical Training (OPT) program, which enables eligible international graduates to gain employment in the US for a maximum of three years, based on their field of study. Government data reveals that nearly 419,000 international graduates were employed through the program in 2024.

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According to the existing regulations, the majority of eligible graduates are permitted to work for a maximum of 12 months under the Optional Practical Training (OPT) program. Those graduating in qualifying fields of science, technology, engineering, and mathematics (STEM) may be eligible for an additional 24-month STEM OPT extension, which enables them to stay employed in the US for a cumulative total of 36 months.

Graduates frequently utilize this program to acquire professional experience while pursuing employer sponsorship for an H-1B visa, which is the primary work visa designated for highly skilled foreign professionals.

Without OPT, several graduates would face a limited timeframe after completing their studies before they must exit the US. As a result, this program has emerged as one of the most significant draws of an American university education, especially for students in engineering, computer science, finance, and other in-demand sectors.

Earlier, officials aimed for the H-1B fee to be widely applicable; however, following resistance from major technology firms, the proposal was refined to encompass only specific foreign professionals arriving in the country on H-1B visas.

The new proposal shifts its emphasizes to graduates who are already enrolled in educational institutions within the US. While outsourcing and consulting companies commonly employ workers from other countries through the H-1B program, many of the largest technology and financial firms in the nation actively recruit international students from American campuses, hire them under OPT after they graduate, and later provide sponsorship for H-1B visas.

The introduction of a considerable fee for OPT participation would directly influence this hiring process, potentially leading to increased costs for both employers and international graduates.

The OPT program plays a crucial role in the decision of many Indians to study in the US. Statistics reveal that Indian participation in OPT surged by 47 percent within a single year, with approximately 40 percent of Indian students in the US engaging in the program.

For many students, the rationale is straightforward: incur education loans now, work in the US for several years post-graduation, and subsequently repay the loans with a salary earned in the US.

A $100,000 charge completely alters that equation. It suggests that students, who are already straining their budgets for tuition and living costs, would need to acquire a completely new and significant sum—just to obtain the right to work legally after they have graduated.

According to education consultants, the repercussions may manifest quickly: a decline in the number of Indian students opting for STEM programs in the US, an increase in students considering Canada, the UK, Germany, or Australia as alternatives, and Indian graduates currently in the US urgently seeking to determine their next steps before the implementation of any regulatory changes.

Moreover, if it becomes companies responsibility to cover the fee, they might limit their recruitment of international graduates or restrict sponsorship to only the most outstanding candidates.

The repercussions would not be confined to students alone. American universities, which depend significantly on international enrollments, could experience a drop in admissions if prospective students determine that the return on investment is no longer worth the expense.

Universities have also highlighted this concern. According to the Open Doors survey, 96 percent of American institutions identified visa application issues as the primary factor contributing to the drop in new international enrollments this year.