New Delhi / Washington: A growing push in the United States to restrict post-study work rights and increase taxes on international graduates is creating serious concern among Indian students.

At the heart of the issue is Optional Practical Training (OPT), a popular programme that allows international students to work in the US after finishing their degrees. For many, OPT is a critical stepping stone to securing an H-1B work visa and building a long-term career in the country.

What is OPT — and why does it matter?

OPT lets students on F-1 visas work in the US for up to 12 months after graduation, or up to 36 months for those in STEM fields. It gives international graduates the chance to gain real-world experience related to their degree and often helps them transition to longer-term employment.

For Indian students in particular, OPT is often the most practical way to remain in the US after graduation.

Why is OPT now at risk?

Several policy proposals and legislative changes in the US are threatening the stability of the OPT programme:

Plans to remove tax exemptions: New legislation proposes to eliminate current payroll tax exemptions for OPT participants. If passed, international students and their employers would be required to pay Social Security and Medicare taxes — a combined deduction of over 15% from wages. This could reduce take-home pay and make hiring foreign graduates less attractive to companies.

H-1B visa fee hikes: A new rule introduces a one-time $100,000 fee for certain H-1B visa applications, starting in late 2025. Although not directly linked to OPT, it adds a financial barrier to the typical path from OPT to H-1B, making the overall journey to long-term work more expensive and uncertain.

Tighter rules and enforcement: US authorities are increasing oversight of international student work. Reports show more site visits, warning letters, and even threats of visa termination over alleged employment violations. These measures are leaving many students feeling anxious and vulnerable.

A cautionary tale: Status lost in a day

A recent case highlighted online shows how quickly things can go wrong. An Indian student’s OPT status was terminated automatically after their employer withdrew an H-1B visa application — even though the formal paperwork hadn’t yet been processed. As a result, the student was left out of status, risking their legal right to stay in the US.

The only way to fix such issues is often through urgent legal intervention or by asking a university official to file a correction in the SEVIS immigration system — a process that can be slow and uncertain.

What this means for Indian students

The proposed changes pose serious challenges:

Lower earnings: With new taxes, international students could see a noticeable drop in pay.

Fewer job opportunities: Some employers may avoid hiring OPT candidates altogether due to added costs and legal risks.

Uncertain immigration path: The typical post-study plan — OPT followed by H-1B sponsorship — now looks far less reliable.

A shift in study choices: With the US becoming more unpredictable, other countries like Canada, Australia, and Germany may become more appealing destinations for students seeking clearer work rights after graduation.

What students should do

Stay informed: Keep in touch with your university’s Designated School Official (DSO) and follow updates from immigration authorities.

Maintain documentation: Ensure all employment records, contracts, and reporting are up to date and properly stored.

Act quickly if problems arise: If your visa or work status is threatened, seek legal advice immediately.

Consider backup options: Whether it’s a return to India or applying to a different country, it’s wise to have a Plan B.

For years, the US has been a top destination for Indian students seeking quality education and career growth. But as policy changes tighten the window for post-study work, many may now need to reconsider their plans.