OPT Under Fire: Indian Students Face Uncertainty Over Jobs and Status

(NEW DELHI) Indian students across the United States 🇺🇸 are racing to protect jobs, paychecks, and legal status as the long‑reliable OPT bridge from classroom to career faces its toughest test in years. A new one‑time $100,000 H‑1B fee on fresh petitions filed on or after September 21, 2025, proposed limits on how companies can place international hires, and stepped‑up enforcement have raised the risk that a small mistake could end a student’s U.S. plans. University advisers describe heavier caseloads, employers are second‑guessing sponsorship, and students on OPT fear that one sudden status change could force them to leave the country.

At the center is OPT, the program that lets F‑1 students work in jobs tied to their degree for up to 12 months, or up to 36 months for STEM graduates. For many Indian students, OPT is the only practical way to earn U.S. experience before trying for H‑1B, the main employer‑sponsored work visa. Because Indian nationals make up the largest group of international students in the country, policy shocks ripple through campuses, family finances, and hiring teams.

For official background on how OPT works, the U.S. government’s guidance is available at DHS’s Study in the States portal: Optional Practical Training (OPT) for F‑1 Students.

Policy shocks, fees, and enforcement

The sticker shock from the $100,000 H‑1B fee is real. While exemptions may apply and renewals are not affected, the headline number alone has led many companies—especially smaller firms and startups—to delay or drop sponsorship plans for graduating students.

Concurrently, the Department of Homeland Security has floated rule changes that could:

• Limit third‑party client placements
• Tighten eligibility proof requirements
• Narrow certain exemptions that previously reduced compliance burdens

All of this makes the OPT → H‑1B handoff more fragile and less predictable.

Tax debates in Congress add another pressure point. Bills including Senator Tom Cotton’s OPT Fair Tax Act and the broader DIGNITY Act of 2025 aim to remove the current payroll tax break for students on OPT, which would force both workers and employers to pay FICA taxes of about 15.3%. If enacted, those taxes would:

• Cut take‑home pay for students
• Raise total labor costs for companies
• Likely dampen hiring of recent graduates on OPT

Meanwhile, enforcement is running hotter. ICE and the Student and Exchange Visitor Program (SEVP) have sent warning letters and launched broad checks. Key metrics cited in recent reports include:

• More than 69,000 Indian students flagged in a recent ICE sweep for alleged employment lapses tied to their OPT records, risking SEVIS termination
• Increased unannounced employer visits under USCIS’s Administrative Site Visit & Verification Program (ASVVP) — visits now include worksites and sometimes homes
• Compliance checks focusing more on whether job duties, locations, and hours truly align with the degree and what was reported to the DSO

Important takeaway: enforcement now examines the match between job duties and degree more closely, as well as the accuracy of reported locations and hours.

On‑the‑ground fallout for students

A widely shared Reddit case illustrated the system’s fragility: an employer withdrew an H‑1B petition just before its start date, but USCIS records had already auto‑activated the change of status. SEVIS then auto‑terminated the student’s record, and the student slipped out of status overnight.

Immigration lawyers say these electronic timing issues are not rare. When system triggers fire before a formal withdrawal is recorded, students may have few options and very little time.

Fixing such disruptions often requires a rapid, precisely timed sequence of steps:

1. Obtain formal written confirmation from USCIS that the H‑1B petition has been withdrawn.
2. Ask the DSO to request a SEVIS data correction so the student’s record reflects the correct, earlier status.
3. If needed, file for reinstatement under F‑1 rules using Form I‑539 (Application to Extend/Change Nonimmigrant Status): USCIS I‑539.
4. In tougher cases, depart the U.S. and re‑enter on a new F‑1 visa to reset status.

Students on initial OPT also face tight reporting timelines and substantive requirements:

• Work must be related to the degree
• Employment details must be kept current with the DSO
• Gaps in employment or missed reporting can trigger warnings or SEVIS termination
• OPT applicants must seek employment authorization from USCIS via Form I‑765 (Application for Employment Authorization): USCIS I‑765

With stricter vetting and more background checks in 2025, students are applying earlier to reduce the risk of delayed start dates.

How students are adjusting

As policy pressures mount, Indian students are building contingencies:

• Keeping a “Plan B” such as returning to India or moving to countries with more predictable post‑study options (Canada 🇨🇦, Australia, Germany)
• Shifting majors or adding STEM qualifications to secure longer OPT extensions
• Seeking roles at global firms likely to relocate employees if U.S. sponsorship becomes difficult

Practical steps DSOs and lawyers advise for Indian students:

• Keep steady, proactive contact with your DSO and respond immediately to any SEVP or USCIS emails
• Document job title, duties, supervisor’s name, work location(s), and start/stop dates; save offer letters and pay stubs
• Match job duties to your degree field in plain language and be ready to explain tasks and tools used on the job
• Consult counsel immediately if you receive a warning, request for evidence, or any SEVIS notice about termination
• If an employer plans to withdraw an H‑1B, request a written date and ensure your DSO is notified the same day

What universities and employers are bracing for

Campus leaders warn that shrinking OPT access — or even the fear of surprise status loss — can alter application patterns from India. Consequences for universities may include:

• Lower international enrollment, affecting budgets
• Fewer teaching assistants in STEM labs
• Reduced industry‑campus collaborations and potential delays in research projects

Employers are facing a different squeeze. OPT has long served as a trial period to train and assess international hires before committing to an H‑1B. Now:

• The $100,000 H‑1B fee prompts finance and HR to scrutinize each case
• Tighter rules on third‑party placements may force companies to bring work in‑house or send projects abroad
• Potential payroll tax changes (FICA at 15.3%) could lead companies to reduce offers or switch hires to contractor roles that may not qualify as valid OPT employment — inadvertently harming students’ status

Some employers are exploring cross‑border teams or short‑term assignments outside the U.S. as alternatives that keep talent in the corporate pipeline while delaying a stateside role.

Policy tweaks in 2025 brought a few mitigations:

• A clearer 60‑day grace period after OPT ends, allowing more time to transfer schools or prepare next steps
• Easier transfers between SEVP‑certified schools at the same or higher level without losing status

However, these gains are overshadowed by the fee shock, the enforcement climate, and longer security checks that can slow visa issuance.

For families in India, the stakes are immediate. Many budget study plans assuming a year or two of U.S. work to repay loans. A sudden SEVIS termination or a withdrawn H‑1B can upend those plans within days. That is why advisers emphasize early, careful filing; detailed job documentation; and clear employer communication. Students should ask pointed questions in interviews about:

• Sponsorship timelines
• Job locations and remote work policies
• Who will respond if government officers visit the office

Practical priorities for students now

Despite anxiety, pathways remain for well‑documented, degree‑related roles at employers with solid immigration practices. Still, the margin for error is thinner. Indian students should focus on three priorities:

1. File clean, timely OPT applications with clear proof that the job matches the degree — use Form I‑765 and track delivery and receipts.
2. Keep status records current with the DSO and retain evidence of every report and update.
3. Discuss H‑1B costs, withdrawal risks, and contingency plans openly with employers so expectations and responsibilities are clear.

Warning: Early planning cannot eliminate every shock, but it can reduce damage if plans change.

As Washington debates tax bills and refines visa rules, technical red tape has very real effects on young careers and family budgets. The fight over OPT and H‑1B is a contest for global talent: if the U.S. raises costs and risks too high, more graduates will take their skills to countries that promise a steadier launch. For Indian students weighing offers this fall, that choice now feels far less theoretical—and far more urgent.