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The Trump administration’s decision to introduce a $100,000 one-time fee on new H-1B visa applications is set to reshape how Indian students view higher education in the United States. While some experts say demand may decline, others believe the attraction of American universities will continue to hold.
H-1B visa fee puts US study plans under pressure
Prof Chandan Gowda, dean at the School of Liberal Arts, Vidyashilp University, said the change could discourage Indian students who traditionally pursue US education with the goal of long-term work opportunities.
“Almost all firms will find the $100,000 fee for new H-1B visa applicants unaffordable. Plus, the threat of deportment over a Facebook post or a like on a post on X has made pursuing higher education in the US a high-risk option,” said Gowda.
He added that Indian students might consider staying back. “Indian students would do well for themselves by exploring the new, expanded higher education opportunities within India since they offer high quality education without the burden of heavy financial costs or the threat of volatile immigration policies.”
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Ankit Mehra, co-founder and chief executive officer of GyanDhan, pointed to early evidence of change.
“The uncertain political environment and visa pause have already caused a reduction in enrolment for Fall 2025, according to preliminary NAFSA data. This could be aggravated by the H-1B visa fee hike as well. We are seeing students prefer other countries that offer good STEM courses, like Germany, while others may decide to defer their admissions till there is more clarity on the matter. That said, US universities are dependent on international students, as their tuition fees are often two to three times higher than those of domestic students,” said Mehra.
Mamta Shekhawat, founder of Gradding, noted that students moving through the Optional Practical Training (OPT) to H-1B pathway would feel the impact most.
Rising costs make US education less attractive
Prof M A Venkataramanan, pro vice-chancellor at FLAME University, said the economics of an American degree are becoming less attractive.
“The recent hike in H-1B visa fees is set to make the USA a far riskier proposition for students funding their education through loans. By significantly increasing the cost of hiring international graduates, the policy tilts the scales against US employers especially midsize companies, smaller enterprises and start-ups. While big corporations with deeper pockets may still recruit, overall opportunities for international students will shrink,” he said.
“For students, this creates a double burden: taking heavy loans for an American degree while facing reduced chances of employment post graduation. Without access to stable jobs in the US, their ROI will drop sharply as well leading to a longer payback period for the loan. These factors make the prospect financially unattractive to students, ultimately leading to potential shrinkage of the US education and jobs market for international talent.”
Experts say US universities still hold strong appeal
Not everyone expects a sharp drop.
“Indian demand for US education is unlikely to fall sharply in the near term — the pull of world-class programs and career opportunities remains strong. While fee hikes may add pressure, these are temporary changes that could be challenged in courts or reversed with a change in administration, so families should avoid knee-jerk reactions,” said Nikhil Mudgal, founder and CEO of Lorien Finance.
OPT pathway under spotlight after H-1B fee hike
Indian students in the US usually begin on F-1 visas, which allow them to study but not work. Many then take OPT, which provides temporary employment linked to their area of study, before attempting to secure an H-1B visa.
Saurabh Arora, founder and CEO of University Living, explained how perceptions are changing.
“The immediate impact of the H-1B fee hike does not fall on the OPT pathway itself, since OPT is tied to student visas rather than work visas. But because OPT has always been seen as the natural bridge to the H-1B, the psychology around it will change,” said Arora.
“OPT may now be treated less as a stepping stone to long-term employment in the US and more as a standalone opportunity to gain international work experience.”
Praneet Singh, AVP of university partnerships at upGrad, agreed. “From a student perspective, the Optional Practical Training period — three years for STEM, one year for others — still provides experiential learning opportunities before H-1B sponsorship. However, students may increasingly weigh their fields of study, university choice, and target employers based on industries that are likely to continue sponsoring H-1B talent.”
Shekhawat added that while OPT is a valuable bridge, the new policy raises concerns. “The new fee is just another added burden on top of the steep tuition costs and living expenses, and the uncertainty that surrounds the visa processes. That being said, Indian students need to understand the situation. The American job market is second to none in the world. If the fee is removed from the expenses and considered a long-term investment, it is more than justifiable. The only concern is the optics because every single additional cost sends the message of gatekeeping.”
How Indian students can prepare for US study
Experts suggested Indian students take practical steps.
“Students must stay updated on immigration changes, keep their paperwork in order, and use university resources proactively. By the time today’s students graduate and move onto OPT, the policy landscape could look very different — Trump may no longer be in office, and many of these measures could be rolled back,” said Mudgal.
Mehra added, “Students should proactively start looking for job opportunities outside the US to safeguard their future. They could also look at securing jobs at big tech companies in the US who might be willing to pay the visa fees in the future. It’s important to remember that the latest H-1B visa fee announcement does not impact your current visa status. The $100,000 fee applies only to those applying fresh, not renewals.”
He also suggested steps students can take:
< Strengthen networks via alumni groups and career services
< Build skills in globally in-demand areas such as AI, cybersecurity, fintech and data science
< Explore jobs at larger US firms with resources to bear the visa costs
< Look for alternatives in other markets if opportunities in the US tighten
ROI concerns dominate parent and student decisions
One of the biggest concerns remains the return on investment.
“One of the biggest draws of pursuing higher education in the US is the income potential and therefore the ROI, that graduates can expect post degree. Parents must look at the availability of scholarships and on-campus work opportunities, while comparing return on investment with alternative study destinations,” said Mehra.
Mudgal added, “Parents should budget beyond tuition and living costs, factoring in hidden expenses such as visa fees, health insurance, and travel. Building a 10–15% contingency into their education loan or savings plan ensures they are prepared for such policy shifts, which are often temporary, without derailing their child’s study-abroad journey.”
Students weigh Canada, Germany and Australia as options
Shekhawat said the new rules could shift demand elsewhere. “Trump administration’s attitude will eventually drive talent towards more accessible countries such as Canada, Germany, and Australia if the immigration process is simpler and less expensive. We all know the USA is the top for technology and innovation and for that reason will for certain be the favoured choice. It’s just that the fee increases will take away from the appeal over a period of time.”
Mehra added a note of caution. “As with all things related to Trump, outcomes remain unpredictable. What’s certain is that adaptability and foresight will matter more than ever. Indian students and professionals must remain informed, diversify options, and prepare to thrive in a changing global setting.”
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