Impact of the U.S. Bill Eliminating OPT on Indian Students (Proposed)
Impact of the U.S. Bill Eliminating OPT on Indian Students (Proposed)
The Background
The introduction of a bill in the United States Congress on April 8, 2025, proposing the elimination of the Optional Practical Training (OPT) program represents a significant shift in U.S. immigration policy with profound implications for over 300,000 Indian students currently enrolled in U.S. higher education institutions, particularly those in STEM fields. The OPT program, which allows international students, including Indians, to work in the United States for up to three years post-graduation (one year for non-STEM and an additional two years for STEM graduates), has been a critical pathway for Indian students to gain professional experience, offset educational costs, and transition to H-1B visas. This note examines the multifaceted impacts of this policy change on Indian students, their families, and their post-study prospects, drawing on the economic, social, and educational dimensions highlighted in the document.
3 lakh Indian students in US face uncertain future
Impact on Indian Students
The termination of OPT would disrupt the post-graduation plans of Indian students, who constitute a significant portion of the 300,000 eligible for OPT in the 2023-24 academic year, as the Open Doors 2024 report reported. The immediate consequence is the loss of a legal mechanism to remain in the U.S. and gain work experience, forcing students to depart the country upon completing their studies unless they secure an H-1B visa – a process complicated by its lottery system and limited annual cap. This abrupt shift has triggered widespread panic, with students redirecting their focus from academic and professional development to immigration strategies, as evidenced by the change from “case competitions and coding boot camps” to “legal webinars and immigration forums” (Khandelwal, Collegify).
Economically, the loss of OPT threatens students’ ability to earn a U.S. salary, which is often significantly higher than earnings in India or other countries. This income is crucial for repaying substantial student loans, with annual U.S. education costs averaging $60,000. The absence of this earning potential could lead to financial distress, particularly for those who financed their education through loans with high interest rates or equated monthly instalments (EMIs).
Socially, the policy exacerbates uncertainty and anxiety among students, with many cancelling holiday plans to avoid re-entry issues, as ET noted on advisories from institutions like Cornell, Columbia, and Yale. This isolation from family and home country further compounds the psychological toll of an already precarious situation.
Options Available to Students
With OPT potentially eliminated, Indian students face limited alternatives:
1 H-1B Visa Transition: Students could attempt to secure an H-1B visa, sponsored primarily by U.S. and Indian tech firms. However, the H-1B process is highly competitive, with a lottery system and a cap of 85,000 visas annually (including 20,000 reserved for advanced degree holders). The urgency to transition before graduation adds pressure, and success is not guaranteed.
2 Alternative Study Destinations: The document notes a 20% uptick in applications to non-U.S. destinations like Canada and Europe for 2025 and 2026 batches. These countries offer post-study work options (e.g., Canada’s Post-Graduation Work Permit), though their job markets and salary levels may not match the U.S.
3 Return to India: Students may return to India immediately post-graduation, leveraging their U.S. degrees to seek employment. However, this option poses challenges, as discussed below.
Parental Concerns
Parents of Indian students are increasingly worried about the “future-proofing” of their children’s education, given the approx $60,000 annual investment. The primary concern is the loss of post-study work opportunities in the U.S., which many families view as a return on investment (ROI) for funding expensive degrees. Without OPT, the ability to repay loans becomes uncertain, potentially straining family finances, especially for middle-class households reliant on EMIs. Additionally, parents fear their children’s employability in a global context may diminish if they lack U.S. work experience, a credential highly valued by multinational employers.
Loan Repayment and EMIs
The financial burden of U.S. education is substantial, often financed through loans from banks in India or private lenders with repayment schedules tied to EMIs. OPT’s three-year work period provided a buffer to earn U.S. salaries (often $50,000–$100,000 annually for STEM graduates) to service these debts. Without this income, students face:
- Default Risk: Inability to meet EMI obligations could lead to defaults, damaging credit scores and imposing penalties.
- Extended Repayment: Families may need to renegotiate loan terms, extending repayment periods and increasing interest costs.
- Alternative Income Sources: Students returning to India may struggle to find jobs with salaries sufficient to cover EMIs, given the disparity between U.S. and Indian earning potential.
Job Opportunities in India
If forced to return to India, students with U.S. STEM degrees could target sectors like IT, pharmaceuticals, and engineering, which value international credentials. India’s IT industry, employing over 5 million people (NASSCOM, 2024), offers roles at companies like TCS, Infosys, and Wipro, with starting salaries for graduates ranging from ₹3–8 lakh per annum ($3,600–$9,600). However, these salaries pale compared to U.S. earnings, complicating loan repayment. Moreover, the Indian job market is highly competitive, with unemployment rates for graduates hovering around 15–20% (CMIE, 2024), potentially leaving returnees underemployed or in roles misaligned with their training.
Broader Implications
The elimination of OPT could have ripple effects:
- Talent Displacement: Keshav Singhania notes that U.S. companies rely on OPT candidates for their skills, not just cost savings. Losing this talent pool could benefit competitor nations like Canada or Germany.
- Economic Contribution Loss: International students contributed $43.8 billion to the U.S. economy in 2023-24 (NAFSA). A decline in Indian enrollment due to restrictive policies could reduce this economic impact.
- Shift in Study Abroad Trends: The U.S.’s appeal as a study destination may wane, redirecting Indian students to countries with more predictable post-study pathways.
Concluding Observations
The proposed bill threatens to upend the aspirations of Indian STEM students in the U.S., stripping them of a vital bridge between education and employment. While options like H-1B visas or relocation to alternative countries exist, they are fraught with uncertainty and logistical challenges. For parents, the financial and emotional stakes are high, with loan repayment emerging as a central concern. Returning to India offers a fallback, but the limitations of the job market may hinder students’ ability to leverage their U.S. education fully. This policy shift underscores the need for adaptive strategies among students, families, and educational institutions to navigate an increasingly restrictive global mobility landscape.
https://educationforallinindia.com
Here are the TOP US Universities offering SETM
-
Massachusetts Institute of Technology (MIT)
🔗 https://www.mit.edu/ -
Stanford University
🔗 https://www.stanford.edu/ -
California Institute of Technology (Caltech)
🔗 https://www.caltech.edu/ -
University of California, Berkeley (UC Berkeley)
🔗 https://www.berkeley.edu/ -
Harvard University
🔗 https://www.harvard.edu/ -
Georgia Institute of Technology (Georgia Tech)
🔗 https://www.gatech.edu/ -
Purdue University
🔗 https://www.purdue.edu/ -
University of Illinois at Urbana-Champaign
🔗 https://illinois.edu/
