What is the Proposed Change?
The US government is reportedly considering a proposal to impose a fee of up to $100,000 on international students seeking post-graduation work authorization. This would target the Optional Practical Training (OPT) program, a crucial pathway for graduates
on F-1 student visas. According to reports, the proposal is under discussion within the Department of Homeland Security (DHS) but has not been finalized or approved. A DHS spokesperson noted that the department is always exploring tools to protect the integrity of the legal immigration system but stated no policies should be considered final until formally announced.
Understanding OPT and Its Importance
Optional Practical Training, or OPT, is not just a benefit but a critical bridge for many international graduates, especially from India. It allows them to gain temporary work experience directly related to their field of study. Standard OPT provides up to 12 months of work authorization. For those in Science, Technology, Engineering, and Mathematics (STEM) fields—a group with a large Indian presence—a 24-month extension is possible, allowing for up to three years of work experience in total. For many, OPT is the primary route to paying off substantial education loans, gaining invaluable US work experience, and eventually securing sponsorship for a longer-term work visa like the H-1B.
The Financial Impact on Indian Students
A $100,000 fee would be a seismic shock for Indian students and their families. Many rely on significant educational loans to fund their US studies, and the ability to earn a US salary post-graduation is a key factor in that financial calculation. Experts argue that such a high fee would destroy the return on investment (ROI) for a US degree, making the entire proposition mathematically impossible for most. The proposed fee could exceed the first-year gross salary for most master's graduates, making it an insurmountable barrier at the very start of their careers. This financial burden could either fall on the student or a potential employer, with either scenario likely resulting in fewer opportunities for international graduates.
Why is This Happening Now?
This proposal is seen as part of a broader strategy to increase financial barriers within the legal immigration system. The administration's stated rationale for such moves is to discourage misuse of immigration programs, protect American workers, and enhance national security. Administration officials have claimed the OPT program can be misused, enabling visa fraud and overstays. The move also follows a similar attempt to impose a $100,000 fee on H-1B visas, which was struck down by a federal court in June 2026 after facing legal challenges. The focus now appears to have shifted to OPT, which is a regulatory-based program, potentially giving the administration a different path to implement such a change.
Who is Most Affected?
Indian students would be among the hardest hit by such a policy. Indians constitute one of the largest groups of international students in the US, with over 350,000 enrolled in the 2024-25 academic year, and are heavily represented in OPT. Data shows that Indian nationals account for nearly half of all participants in the STEM OPT program, making them particularly vulnerable to any changes. Beyond students, US universities that depend on international student tuition and tech companies that recruit from this talent pool would also face significant disruption.
What Happens Next?
For now, this is only a proposal. It has not been formally announced or implemented, and it would need to go through a federal rulemaking process before taking effect. Any such rule would almost certainly face immediate legal challenges, much like the H-1B fee proposal did. However, the very consideration of this fee has sent a shockwave through the international education community. Prospective students and their families are now forced to weigh the possibility of this massive cost against the benefits of a US education, potentially driving talent to other countries like Canada, the UK, and Australia which have more favorable post-study work policies.
