Washington, D.C.: Indian students aspiring to study and build professional experience in the United States could face a major financial hurdle as the Donald Trump administration has proposed a USD 70,000 fee for the first participation of an F-1 student in the Optional Practical Training (OPT) programme.
Under a Department of Homeland Security (DHS) proposal scheduled for publication, US universities and colleges would be required to pay USD 70,000 for a student’s first OPT authorisation and another USD 30,000 for a subsequent authorisation, including the 24-month extension available to eligible STEM graduates. The proposal is not yet in effect and remains subject to public comment.
Although the fee would formally be imposed on universities and other Student and Exchange Visitor Program-certified institutions rather than directly on students, DHS has said institutions could recover the cost from students, employers or other sources. This could ultimately make the proposed charge a significant additional financial burden for international students.
The proposal is likely to have a disproportionate impact on Indian students, who constitute the largest group of international students in the US. According to the figures cited in the report, India sent 363,019 students to US institutions in the 2024-25 academic year, accounting for around 31% of all international students.
Indian participation in OPT also reached 143,740, registering a 47 % increase in a year. A large proportion of Indian students pursue graduate-level programmes, particularly in computer science, mathematics and engineering. STEM graduates can currently remain under OPT for up to three years.
OPT has traditionally served as an important bridge between higher education and professional employment in the US. It allows foreign graduates to obtain work experience after completing their studies and can subsequently provide a pathway towards employment-based visas such as the H-1B.
The proposed fee could therefore influence the decisions of Indian students considering expensive STEM programmes in the US. If universities find the cost of sponsoring OPT participation prohibitive, students may increasingly consider alternative destinations such as Canada, the United Kingdom and Australia.
The DHS has defended the proposal by arguing that OPT has been vulnerable to fraud, abusive worksites and so-called “pay-to-stay” arrangements. The administration has also maintained that foreign labour can displace American workers and put downward pressure on wages.
However, the proposal has raised questions about whether restricting the participation of foreign graduates could also hurt America’s own technology and research ecosystem. Foreign-born workers accounted for 22% of the US STEM workforce in 2023, while foreign nationals also represented a substantial share of science and engineering master’s and doctoral graduates.
Indian-origin professionals have played a significant role in the US technology sector. Prominent Indian-American executives such as Microsoft CEO Satya Nadella and Google’s Sundar Pichai are examples of the contribution of Indian talent to American companies.
The proposed OPT fee also highlights a growing tension within US immigration policy: while sections of the administration seek tighter restrictions on foreign workers, American universities and technology companies continue to rely heavily on international talent.
For Indian students, the proposal sends a clear signal that pursuing the American educational dream could become substantially more expensive and uncertain. At the same time, it could encourage highly skilled Indian graduates to explore opportunities in India and other global education and technology hubs, potentially strengthening India’s own talent ecosystem.
The proposal is not yet law, and its final form could change following the public consultation process.
