For many Indian students, studying in the US is more than just earning a degree. Due to the numerous opportunities available, the US remains the preferred destination for many Indian students. In a recent move, President Donald Trump has signed a new proclamation that would require H-1B visa applicants to pay a whopping $100,000 fee from the existing $2000-$5000 fee. 

This move is a big setback for Indian students, who dream of studying and settling in America. In this blog, we will explore the recent H1-B visa changes that the US state government has announced and how they impact Indian students who are dreaming of studying abroad.

What is an H-1B Visa, and Why Does It Matter?

  • The H-1B visa, as we all are aware, is the most sought-after visa for entry into the US. It is a special type of US visa that allows American companies to hire immigrant workers, specifically skilled workers such as IT professionals, surgeons, etc. 

  • This visa system was introduced in the 1990s. Indians dominate this field with around 71% of the visa approvals, which is more than a lakh per year. This visa system has helped both sides: the Indians get more job opportunities and the US companies get efficient labour.

  • Recently, the H-1B visa has been in the news, as the US State Department has tightened the rules for the US and has been keenly followed in India. This tightening of the US visa is a big blow to Indian students. Read down below to learn how it impacts Indian students.

What are the Recent H-1B Changes and Proposals?

As previously discussed, the US State Department has imposed a heavy fee of $100,000 for new H-1B visa applicants. President Donald Trump has rolled out a new visa rule that would require new H1-B visa applicants to pay $100,000.

This is to ensure that the companies pay the foreign workers at least the same, if not more than, their American employers. Also, to make sure that the cheap labour force doesn't replace the American workers.

Highlights:

  • H1- visa fees increased to $100,000 from $2000-$5000

  • It's a one-time charge for fresh applications

  • Existing H1-B visa holders are not affected 

  • H1-B visa renewals are not affected

  • This is to find and hire only the deserving, talented individuals.

Why have the Recent H1-B Visa Rules tightened? 

Officials state that the recent hike in H1-B visas is unnecessary and a cheap workforce for the country. To ensure that the organisations find and hire the relevant talent across the globe, and to ensure that the cheap labor does not replace the American workers.

In brief:

  • Discourage misuse of the visa system

  • Encourage American companies to hire local talent

  • Ensure fair hiring practices

Impact on Indian Students

  • The new rule applies only to initial employment; in other words, people applying for a US job through the H1B program for the very first time. It does not apply to those who are already on an H1B visa or simply extending their stay. And to be clear, it is a one-time fee, not a yearly charge.

  • But even as a one-time charge $100,000, which is more than ₹88,00,000. Let us understand how this directly impacts students. As per a report, the average salary of a new H-1B worker is $114,00, while an experienced professional on a continuation petition earns $142,000. So let's put this together.

If a company hires a new H1B worker at around $114,000 a year but has to pay an additional $100,000 as a visa fee, that sums up the total to $214,000.

Compare that with $142,000 it costs to keep an experienced worker or even an American worker, and you see why companies will think twice.

  • Let's imagine you graduate after spending thousands of dollars on tuition and living costs, you take up an optional practical training(OPT) job, which is the work authorisation students get for 1-3 years while still on a student's visa. And just when you are about to line up for an H1B, you are told your first organisation will require you to pay an extra $100,000 for you. For many, that means five years of studying and working in the US, only to hear this right now when they are hoping to settle into a career.

  • There are about 3.3 lakh indian students currently pursuing degrees in the US, making them the largest group of international students. So when the visa costs rise, indian students are the biggest group affected.

  • Around 75% of the Indian students are enrolled in STEM courses. These degrees are the most sought after by US employers and most likely lead to H1B visas.STEM graduates are the ones who line up for H1Bs; indians face the brunt of this policy.

  • Approximately 35% to 45% of all new H1B visa approvals each year go to former students on F-1 visas. This shows how difficult for indian students to enter into job market. All this put together, this visa fee hike doesn't just hit a few individuals.

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What you can do as a Student

Well, this hike in H1B visas may seem intimidating, but not for the real talent. Generally, Indian students do not immediately need an H1B visa upon graduation. Instead, they can rely on optional practical training. This option allows all degrees, including STEM  graduates, to work in the US. for up to three years after graduation.

  • F-1 students are not directly affected: Students on an F-1 visa are not directly affected by this new rule.
  • Build strong skills: Focus on areas in which there is always demand.AI, Data, Biotech, and healthcare, etc., and focus on your studies and excel in your academics.
  • Maximize opportunities: Actively seek out internships, campus placements to strengthen your resume and get work experience.
  • Develop Network: develop professional relationships with active employers who have a history of sponsoring international talent.
  • Understand the Employer's requirements: By now, it is clear that the employer seeks only talented individuals on whom they can invest, including the extra visa fee of $100,000.
  • Have a backup plan: it is recommended to explore and research potential opportunities in other countries, UK, CANADA, or AUSTRALIA, as a backup option.
  • Connect with WeMakeScholars:  Connect with WeMakeScholars for any abroad education-related updates and stay informed about the latest news.
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Conclusion

The US government has recently raised the H1B visa fee to $100,00 from the earlier $2000-$5000. This is a big blow to Indian aspirants who are seeking an H1-B visa. In this blog, we have discussed how these recent changes can significantly impact indian students who are planning to study in the US. In addition, we have also discussed the alternative options and what is to be done as a student.