Charging universities steep fees for international graduates to access post-study work could undermine the appeal of an American degree, sector voices have warned, with students weighing alternative destinations as institutions consider how to respond.
Interviews with university, recruitment and advocacy leaders reveal an uneven picture. Advisers warn that students relying on overseas earnings to recover education costs would be particularly exposed, while some families remain committed to US applications despite the uncertainty.
The Department of Homeland Security’s proposal, published on October 8 and open for public comment until November 9, would require universities to pay USD$70,000 for an initial Optional Practical Training (OPT) recommendation and $30,000 for subsequent recommendations, including a STEM extension, but the fees are not yet in force.
OPT generally allows eligible F-1 students to gain work experience related to their studies for up to 12 months, with qualifying STEM graduates eligible for another 24 months. Initial OPT followed by a STEM extension would therefore attract $100,000 in proposed fees.
For Eddie West, assistant vice president for international affairs at California State University, Fresno, the institutional implications are stark.
“There is no chance our university would be able or willing to absorb those costs, so they’d inevitably be passed on to the student or employer,” he told The PIE News.
West predicted particular pressure on non-STEM enrolments, since graduates eligible for only one year of OPT would have less time to recover the additional expense.
However, he had not yet seen concrete effects on applications or enrolment decisions. Some applicants might be unaware of the proposal, he suggested, while others doubted it would take effect.
DHS argues that the charges would combat fraud, protect American workers and encourage more selective university recommendations, while acknowledging that institutions could pass the financial burden to students or employers.
“I support addressing abuses of OPT – they happen, and that’s something our field doesn’t like to admit,” said West. “But this is like using a sledgehammer when a scalpel is what’s warranted.”
For students borrowing to finance their education, the prospect raises questions about repayment.
Nikhil Jain, chief product marketing officer at Crizac Limited and founder of ForeignAdmits, said access to US employment was central to these students’ calculations.
“Without OPT a US degree doesn’t make any financial sense for the students,” he said, arguing that those with substantial family resources would be better placed to pursue an American education.
Jain reported falling US applications across his networks and greater willingness among lending partners to finance other destinations amid US policy uncertainty.
“We are advising them to focus on the career services, explore alumni connections, focus on their employability aspects, and explore job options in India and even other international markets,” he said.
Sushil Sukhwani, founder and director of Edwise International, drew a distinction between postgraduate applicants seeking financial returns and undergraduates prioritising the educational experience.
“For undecided undergraduates, we ask them to apply to two destinations so they always have a backup and don’t lose an academic year,” he said.
“For graduate programs, we suggest students looking for a return on investment to look elsewhere.”
Master’s applicants were considering Germany, Ireland, France, the UK, Australia and New Zealand, he said, amid wider concerns about the Trump administration’s approach to international students.
“There is an underlying message that the US is not welcoming to students, and that has led some to explore other destinations,” said Sukhwani.
Kimberly Dixit, CEO and co-founder of The Red Pen, described a more cautious response among the families she advises for autumn 2027 entry.
Most of her clients were not taking education loans, she said, and she had not seen families abandon US applications specifically because of the OPT announcement. Instead, they were adding countries and postponing firm commitments.
“Everyone’s in a very wait and see mode,” she said.
Dixit said work experience remained attractive even to students planning to return to India, with growing interest in Singapore, Europe and the UK alongside continued demand for familiar US institutions.
“The colleges that have been on students’ lists for decades are still on the list,” she said.
Kalpana Zutshi, director of agent networks and partner success for North America at Acumen, likewise reported differing responses according to applicants’ priorities.
Academically focused students remained committed, she said, while those prioritising longer-term employment and opportunities to remain abroad were exploring alternatives. Her teams and agent partners had observed a slight softening in US enquiries from the latter group.
“Our US university partners remain committed to international students and are actively taking part in the consultation process,” said Zutshi.
“As the rule is still a proposal, they are reviewing it carefully before making any decisions.”
She urged institutions to counter misinformation through clear communication and explain the career services, employer networks and alumni support available to students.
I support addressing abuses of OPT – they happen, and that’s something our field doesn’t like to admit. But this is like using a sledgehammer when a scalpel is what’s warranted
Eddie West, California State University, Fresno
Under the OPT proposal, previously recommended or approved training would be protected for that period. Subsequent requests after a final rule’s effective date could incur fees, meaning existing enrolment would not provide a blanket exemption.
The uncertainty extends beyond OPT. Stricter federal guidance on Curricular Practical Training (CPT) has prompted universities to restrict optional internships during study, with a legal challenge scheduled for a hearing on November 6.
Separately, the administration’s push to replace “duration of status” with fixed admission periods is currently blocked by a nationwide preliminary injunction.
Jill Welch, co-founder and executive director of the U.S. for Success Coalition, said the coalition of more than 50 organisations was mobilising opposition to the OPT proposal and encouraging public comments. She described the proposed charges as “unauthorised taxes” and called for their withdrawal.
While declining to speak for individual universities, Welch argued that retaining international graduates should guide US policy.
“International students who participate in OPT are already complying with the rules and just want to continue their education in an applied learning setting in their field of study.
“DHS should abandon the proposal and focus instead on using limited resources to advance our nation’s interests,” she urged.
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