H-1B setback threatens the American dream for Indian students

Copyright © HT Digital Streams Limit all rights reserved. Apart from the technology industry, Indian students – especially those of top colleges – are likely to have an immediate setback. Summary The recent changes in H-1B visa fees send shock waves through the global education landscape, especially affecting Indian students. While universities are struggling with stricter regulations, many students reconsider their dreams to study in the US. Donald Trump’s $ 100,000 fee on the H-1B service visas sought after by highly competent immigrants shocked the global education and talent industry. And for thousands of Indian students, like millions worldwide, the American dream could disappear. Apart from the technology industry, Indian students – especially those of top colleges – are likely to have an immediate setback. Many of them secured pre-placement offers with US firms and were ready to start their full-time roles in 2026. Along with suggestions to limit work options for students and mandate the minimum salary thresholds, these changes may also consider other students from American universities and colleges. “I was so excited that I didn’t have to go through the printing of seats for posts, and I would just easily go to the US with a PPO (pre-placement offer) in my hand after the university ended,” a student of one of the older IITs said. “Now I’m not sure if the company will approve my visa sponsor, and I’m awaiting further clarity, which makes my family and me anxious.” H-1B is a non-immigrant visa used by US employers to hire foreign workers in specialty professions that need highly specialized knowledge and at least a bachelor’s degree or its equivalent. It is most commonly used by technology companies and research institutions. Trump signed the ‘restriction on the entry of certain rules for immigration workers on Friday, which requires US companies to search for H-1B skilled workers visas to pay $ 100,000 per application. The rules only make exceptions for roles that are considered necessary for national importance. This caused panic and US businesses such as Microsoft have asked H-1B visa holders to return by midnight deadline on September 21. The White House later made it clear that the fee would not apply to existing visa holders and that it should only be paid once. Double Whammy The new fee structure puts a significant financial burden on potential employers, making the situation complicated for students with existing pre-placement offers, says Namita Mehta, president and partner at the Foreign Education Consultant Red Pen. “Smaller businesses and startups may be forced to withdraw offers, as the additional $ 100,000 per employee is unsustainable. Larger firms and it is more likely to retain these leases, but they can move roles to overseas offices in countries with more favorable visum policy, such as Canada, Ireland, Singapore or even India for India. “Large technical companies such as Amazon, Microsoft and Google can still take the fee for top talent, but it will be much more selective, given the cost of a wrong rent.” Pre-placement offers (PPOs) are becoming an increasingly important rental instrument for businesses, thereby protecting their top interns as full-time employees before the official campus placement season begins. About 70% of companies have already chosen their best candidates through PPOs this year rather than waiting on campus placements, according to Aon’s campus rental report. These rental companies include US businesses and multinational corporations. According to Mehta, even the students waiting for the final post can see a decline in the US offers. “For students currently in the posting process, opportunities are expected to narrow in the United States. Companies are likely to scale down the H-1B-dependent hiring for entry-level rolls, making it uneconomical to recruit fresh graduates unless they fill out highly specialized positions,” she said. The setback will only reinforce the challenges for top colleges that are struggling with a slower tenure cycles, reduced offers of US and global companies and the shifting of recruitment priorities amid economic uncertainties. Tighter work rules for students? A higher visa fee is not the only challenge that Indian students want to study or work in the US face. Republican Senator Jim Banks has set up the American Tech Workforce Act, a legislation that seeks to eliminate the optional practical training program (Opt) or drastically limit, increase salary -minimum for work visas, and sharpen the ability of US employers and universities to recruit and retain foreign voice talent. The combined movements indicate the worst tightening of America’s competent immigration and conversion roads for students and worker in decades. Students studying in the US typically have an F-1 visa, which enables them to follow academic studies but do not allow work except under specific programs such as Opt. After completing their studies, some F-1 students apply for H-1B visas to switch to competent work roles in the US. The H-1B needs sponsorship for employers and is subject to an annual captain and a lottery system as demand exceeds supply. “The additional fee on H1 visa and possible closure of the Opt -program that enables students to fulfill internships and training after completing their course in the US has limited opportunities for students who immigrate for education,” said Suchindra Kumar, education analyst at PWC consulting firm. “Without it, the students will have to leave immediately after their study program, because potential recruiting organizations will be careful to pay $ 100,000 for a new graduate in addition to their regular compensation.” Kumar points out that the 4 Lakh students who immigrate for their studies each year are no more than 10-15% travel for strict educational purposes. ‘Most of the students consider it a gateway to employment and establishment in the country after study. This part of the students will be largely affected, ‘Kumar said. ‘Many of these existing students have great education loans they plan to repay through salaries from a job in the US. To move away from the US Red Inc. Mehta, suggests that the placement cells at leading institutes may have to turn to global places where immigration roads are clearer and cheaper, ensuring that students still gain access to strong international career opportunities. As it is, students have begun to move away from the US of stricter visa regulations as a destination to study abroad. “… now it will almost dry up until there is clarity on the relevance of the H-1B fee. The immediate impact on the current students studying in the US will discourage the next wave of students who plan for foreign education to fly to the US,” Kumar said. “Even from an American university perspective, international students who paid full were an important way to transfer local students and grant scholarships,” according to Kumar. ‘In the long run, it will even get a hit in the long run. Students from India who are looking for scholarship opportunities will struggle. ‘ Narayanan Ramaswamy, partner and leader for education and skills development practice at the consultant firm KPMG, said: “If I was a student, I would now be concerned because the recent changes not only have an immediate impact on students who are currently studying abroad, but also affect the students who plan to do so.” He said “European countries, including the UK, Japan and Australia, could benefit from educational immigration, followed by employment.” PwC’s Kumar considers the UK a major beneficiary, citing its best research -based institutions after the US and India’s recent free trade agreement also covers services. However, Ramaswamy said that academic competence pillows India’s top students of the new H-1B fees. “The Creme de la Creme of students from India of Institute who are highly arranged academically will continue to get opportunities and will not get a big hit because the US cannot stop all entries immediately and will need a competent workforce from India.” Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #H1B Visas #us Visa Read Next Story