F-1 to H-1B Change of Status: No $100,000 Fee for In-US Filings

(UNITED STATES) International students on F-1 visas can move from study to work in the United States 🇺🇸 without paying the new H‑1B $100,000 fee if their employer files a domestic change of status. Under policy that took effect on September 21, 2025, most new H‑1B petitions filed for workers outside the country trigger the additional charge. But petitions filed for individuals already in the U.S., including students on F-1 status or on Optional Practical Training (OPT), are exempt when submitted as a change of status.

That distinction is now central to post-graduation planning for thousands of students and for employers eager to retain them.

Policy purpose and basic carve-out

According to USCIS H-1B guidance, the extra fee is aimed at discouraging lower-wage overseas hiring and steering employers to recruit talent already in the country. While the fee applies to many new H‑1B filings from abroad, it does not apply to a qualifying F‑1 to H‑1B change of status filed inside the U.S.

This carve-out gives students and universities more certainty on costs at a time when hiring budgets are tight and international graduates are planning their first full-time roles.

The three core conditions for the exemption

The exemption hinges on three critical requirements:

1. The student must hold valid F-1 status at the time of filing, including valid OPT or STEM OPT if applicable.
2. The employer must request a change of status through a domestic filing, rather than asking the student to depart and apply from abroad.
3. The student needs to remain inside the U.S. while the petition is pending; leaving during processing can convert the case into a “new overseas filing,” which would trigger the H‑1B $100,000 fee.

If any of these elements fail, the safeguard falls away.

Filing mechanics and documentation

• Employers continue to use Form I-129 to request H‑1B classification. When the worker is already in the country and eligible, they select change of status on the form to keep the process inside the U.S.
• The student’s prior F-1 work authorization—typically granted through Form I-765 for OPT or STEM OPT—must still be valid on the day the H‑1B petition is filed to preserve the exemption.
• While standard filing fees and other H‑1B program costs still apply, the extra $100,000 charge does not apply in qualifying domestic cases.

For official forms and guidance:
– USCIS H-1B guidance: https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations
– Form I-129: https://www.uscis.gov/i-129
– Form I-765: https://www.uscis.gov/i-765

Immediate effects on cost, timing, and planning

The policy has immediate effects for students, universities, and employers:

• Students and employers can plan the F‑1 to H‑1B transition without a sudden six‑figure fee.
• Universities say this preserves on-campus recruiting stability for graduating classes.
• Employers benefit from lower budget risk, since avoiding the fee removes a major variable.
• Students can continue working under existing OPT or STEM OPT while their H‑1B change of status is pending, provided the F‑1 work authorization remains valid.

Common pitfalls and warnings

The exemption is helpful but not automatic. Major risk factors:

• Falling out of F-1 status before filing (e.g., gaps in employment, missed course load requirements, expired documents).
• Traveling abroad while the change-of-status petition is pending—this commonly converts the domestic filing into an overseas petition subject to the fee.
• Mislabeling the petition type, where a domestic case is mistakenly treated as a consular filing.
• Relying on outdated policy notes—immigration rules and agency instructions can change.

Important: If a student must travel, they should consult the employer’s immigration counsel before booking a ticket.

Practical checklist — What students should do

• Maintain valid F-1 status or valid OPT/STEM OPT until the H‑1B is filed as a change of status.
• Work with an employer willing to sponsor and file domestically.
• Avoid international travel before and during processing.
• Keep documents current and organized:
  • Copies of I-20s with work authorization notes
  • I-94 arrival record
  • Transcripts showing full-time study completion
  • Job offer letters
  • OPT/STEM OPT approval notice

Practical checklist — What employers should do

• Confirm the worker’s presence and status in the U.S. at filing.
• File the H‑1B through change of status when hiring an F‑1 student already in the country.
• Warn candidates not to travel while the petition is pending.
• Budget for the $100,000 fee when recruiting from overseas, since that scenario likely triggers the charge.
• Label filings precisely and include evidence that the worker is in valid F-1 status.

Impact on applicants and employers

Students and recent graduates benefit the most: the transition to full-time employment becomes cheaper and more predictable. Early-career professionals can evaluate offers on career fit, not sudden budgetary hurdles. Universities see steadier recruiting pipelines. Employers can retain graduates on teams without facing the six-figure surcharge that applies to many overseas hires.

However, precise compliance and timing are essential. In a system where a flight abroad can trigger a six-figure fee, precision matters.

Timing strategies and coordination

• If OPT or STEM OPT is valid and the employer is ready, move early to keep status clean.
• If travel is unavoidable, consider waiting to file until the student returns and is firmly in status.
• Good calendar planning reduces the risk of a last-minute switch to an overseas filing and the attached fee.

Final takeaway

For now, the path is straightforward: if you are already in the U.S. in valid F-1 status, including on OPT or STEM OPT, and your employer files an H‑1B change of status without overseas travel, the H‑1B $100,000 fee does not apply. If you lose status or depart before or during processing, you may fall into the category that faces the charge. That clear fork in the road is shaping decisions in student services offices and hiring meetings across the country.

Ask direct questions of prospective employers:
– Will the company file a domestic change of status?
– Do they understand the travel limits during processing?
– Have they handled F‑1 to H‑1B hires recently?

When everyone follows the rules—maintain status, file domestically, avoid travel—the exemption functions as intended: it keeps the door open from study to work without the $100,000 price tag.