OPT in crisis: Why Indian students in the US could be the hardest hit by F-1 visa shake-up

For international students worldwide, the Optional Practical Training (OPT) program has been a lifeline—providing real-world work experience in the United States after years of academic investment. For many, it’s not just an internship opportunity; it’s the difference between a global career and returning home without practical exposure.

But today, that lifeline is under serious threat. Proposals to eliminate OPT, introduce new payroll taxes, and tighten compliance are creating uncertainty for students and universities alike. For Indian students, the largest group of STEM graduates in the US, these changes could be especially devastating, potentially altering the value proposition of an American degree and redirecting global talent flows to competitor nations like Canada, the UK, and Australia.
What is OPT and why does it matter globally?OPT is a work authorisation program for F-1 visa holders, allowing them to work in roles directly related to their field of study. Students get:

• 12 months of work authorisation during or after graduation.
• Additional 24 months for STEM graduates, making a total of up to 36 months in the U.S.

This is a major draw for international students, who collectively contributed $40 billion to the US economy in 2024. According to recent estimates, over 200,000 students use OPT annually, with the majority coming from India, China, South Korea, and Brazil. For these students, OPT is not optional—it’s essential for career prospects and financial justification of their education investment.
Why Indian students stand to lose the mostIndia sends over 270,000 students to the US each year, most in STEM fields like computer science, data analytics, and engineering. Nearly 80% of Indian students in the US enroll in master’s or higher degree programs, specifically attracted by the prospect of work experience through OPT and potential H-1B sponsorship afterward.

Without OPT:

• Many students would lose their only US work experience, reducing global employability.
• Families investing ₹50–70 lakh or more in American degrees would see a poor return.
• Indian enrollment in US universities could decline sharply, similar to trends seen when Canada and Australia tightened work rules in previous years.

Proposals to end or restrict OPTCritics of OPT argue it undercuts US workers and lacks a clear legislative basis. Key voices include:

• Jessica Vaughan, Director of Policy Studies at the Center for Immigration Studies, advocating for stricter student visa programs.
• Joseph Edlow, expected to lead USCIS, pushing to eliminate OPT work authorisation altogether.

If enacted, these proposals would dismantle OPT—removing a critical incentive for international students and prompting universities to lose a major recruitment advantage.
New tax rules: Adding to financial strainCurrently, students on OPT are exempt from FICA taxes (Social Security and Medicare), a benefit worth 7.65% of their salary. Under new proposals, this exemption could be removed, meaning:

• Students and employers must pay 6.2% Social Security tax and 1.45% Medicare tax each.
• For a student earning $70,000 during OPT, that’s $5,355 in additional taxes.

For Indian and other international students already paying high tuition and living costs, this tax hit could make the USless attractive compared to countries like Canada, where graduates enjoy generous post-study work permits without similar tax burdens.
Stricter oversight and fraud crackdownsIn addition to policy changes, enforcement is tightening:

• Students who fail to report employment to SEVP within 90 days risk losing visa status.
• Employers creating fake jobs or payroll records face fraud charges, which could lead to revocation of I-20 forms for students and termination of their legal status.

These actions aim to preserve the integrity of OPT but add pressure on students navigating an already complex system.
Global ripple effect: Universities, employers, and economies

• Students (India, China, and beyond): Risk losing career opportunities, facing higher costs, and reconsidering USeducation.
• Universities: Could see a drop in international enrollment, threatening billions in tuition revenue.
• Employers: Particularly in tech and healthcare, may face deeper skill shortages if foreign graduates exit the USjob market.

Competing nations are watching closely. Canada’s Post-Graduation Work Permit (PGWP) and Australia’s Temporary Graduate visa offer more stability, making them attractive alternatives for Indian and global students seeking certainty.
What lies ahead?While some changes like stricter compliance checks are already in motion, others—such as ending OPT or imposing taxes—depend on legislative processes. The outcome could redefine global student mobility.

What students can do now:

• Stay compliant with SEVIS reporting.
• Explore alternatives like Curricular Practical Training (CPT) or direct H-1B sponsorship.
• Monitor policy updates through official USCIS and SEVP channels.

Bottom lineThe OPT program has long been a cornerstone of US higher education’s global appeal. But with tax proposals, policy attacks, and enforcement crackdowns, its future hangs in the balance. For Indian students and others around the world, the stakes couldn’t be higher. Whether OPT survives or collapses will shape not only individual careers but also the global education landscape in the coming years.