A new proposal from the United States Department of Homeland Security could make it dramatically more expensive for international students to stay and work in the country after graduation.
Under the proposed rule, US universities would have to pay $70,000 for an initial recommendation for Optional Practical Training (OPT) for an F-1 international student. A further $30,000 fee would apply to subsequent OPT recommendations, including extensions under the STEM OPT programme.
The proposal has immediately raised concerns among international students, universities and employers because OPT is one of the main reasons many students choose to pursue higher education in the US. It allows eligible F-1 students to gain practical work experience in jobs connected to their academic field after completing their studies.
The proposed fees are not currently payable. The rule is still going through the federal regulatory process and could change before becoming final.
The financial shock is nevertheless substantial. At present, students do not face anything close to a $70,000 government charge for an initial OPT recommendation. Under the proposed system, the university would make the payment before its designated school official could recommend the student for OPT.
Although the fee would officially be imposed on the educational institution, DHS acknowledges that universities could potentially recover the money from students, employers or other sources. That means the final burden could eventually reach international students, even though they would not technically be the government’s direct payer.
OPT is particularly important for students from countries such as India, which sends a large number of students to US universities. The programme provides an opportunity to gain American work experience after graduation and can become an important step for those hoping to build careers in technology, engineering, finance, healthcare and other specialised sectors.
Most eligible students can receive up to 12 months of OPT after completing their studies. Graduates in qualifying science, technology, engineering and mathematics fields can apply for an additional 24-month STEM OPT extension, potentially allowing them to work in the US for as long as three years after graduation.
That makes the proposed fee structure especially significant for STEM students. A student could potentially face a $70,000 initial charge followed by another $30,000 if an extension were required, although the precise financial impact would depend on how universities respond to the rule.
DHS is defending the proposal as an immigration enforcement measure rather than simply a revenue exercise. The department says OPT has been affected by fraud and abuse and argues that a substantial fee would discourage misuse while strengthening the integrity of the programme.
The agency has cited cases involving students allegedly using shell companies or questionable employers to meet OPT requirements. DHS also says the measure would help protect American workers by reducing what it describes as a pipeline for low-cost foreign labour.
That reasoning has drawn a strong response from the international education sector.
Education groups argue that OPT allows international graduates to gain practical experience while contributing to the US economy. They also warn that imposing such a large cost could make American universities less attractive to international students at a time when overseas enrolment is already under pressure.
The concern is not limited to students. US universities rely heavily on international enrolment for tuition revenue, while American employers, particularly in technology and other STEM-heavy industries, recruit graduates with specialised skills.
A sharp fall in international enrolment could therefore have consequences beyond college campuses. Universities could lose revenue, while employers could find it harder to access global talent.
The timing adds to those concerns. New international student enrolment in the US fell 17% last year, the sharpest decline since the pandemic, according to figures cited by higher education groups. Some institutions have reported even larger declines.
The proposed OPT fee is part of a wider tightening of US immigration policy affecting international students and foreign workers. The Trump administration has already pursued major changes involving student visas, employment-based immigration and other programmes used by foreign graduates.
The proposal could therefore influence how students and families make decisions about studying abroad. US education has traditionally been attractive not only because of the quality of its universities but also because students can gain work experience after completing their degrees.
If that pathway becomes significantly more expensive or uncertain, prospective students could begin looking more closely at alternatives such as Canada, the UK, Australia or other education destinations.
The rule will now go through a public comment process before DHS decides whether to issue a final regulation. Students who already have OPT approval before any final rule takes effect are not expected to be affected by the new fees.
