For international students, the Optional Practical Training (OPT) program is a crucial way to get hands-on work experience in the U.S. after they graduate. This program is a vital step for many, turning their academic studies into a successful global career instead of returning home without practical exposure.
The OPT program is in serious threat. New proposals to get rid of it, add extra taxes, and make the rules stricter are causing a lot of worry for both students and universities.
These changes would hit Indian students the hardest, as they are the largest group of STEM graduates in the US. If OPT is eliminated, a US degree might seem less valuable, and talented students might choose to study in other countries like Canada, the UK, or Australia instead.
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What is OPT and why does it matter globally?
OPT is a program that lets international students with an F-1 visa get jobs related to their major. Students can gain:
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12 months of work authorization, available either during or after your academic program.
An additional 24-month extension for STEM graduates, extending the total work period to up to 36 months.
The OPT program is a big attraction for international students, who contributed $40 billion to the US economy in 2024. Over 200,000 students use OPT each year, mostly from India, China, South Korea, and Brazil. For them, OPT is crucial for launching their careers and getting a return on their education investment.
Why OPT is Critical for Indian Students?
India sends more than 270,000 students to the U.S. every year, with the majority studying STEM fields like computer science, data analytics, and engineering.
About 80% of Indian students in the U.S. are in master's or higher-level programs. They are particularly drawn to the U.S. because of the chance to gain work experience through the OPT program and the possibility of getting an H-1B visa after.
Without OPT:
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Many students would miss out on their only chance for U.S. work experience, which would make them less competitive for jobs around the world.
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Families that spend over ₹50–70 lakh on an American degree would get a poor return on their investment.
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The number of Indian students enrolling in U.S. universities could drop sharply, just as it did in Canada and Australia when they made their work rules stricter.
Proposals to End or Restrict the OPT Program
Critics of the Optional Practical Training (OPT) program say it takes jobs away from American workers and isn't supported by a clear law.
Notable critics include:
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Jessica Vaughan, from the Center for Immigration Studies, who wants to make student visa programs much stricter.
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Joseph Edlow, a potential head of USCIS, who has pushed to completely eliminate OPT work permits.
If these proposals become law, they would completely get rid of the OPT program. This would remove a key reason for international students to come to the U.S. and cause American universities to lose a big advantage they have in attracting top talent from around the world.
New Tax Rules Add to Financial Strain
Currently, students on OPT do not have to pay FICA taxes (Social Security and Medicare), which saves them a lot of money—7.65% of their salary.
If new proposals pass, this tax break would go away. This means:
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Both the student and their employer would have to pay a portion of the tax.
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For a student making $70,000, this would mean paying an extra $5,355 in taxes.
For Indian and other international students who are already paying very high tuition and living costs, this extra tax could make the U.S. much less appealing. They may decide to go to countries like Canada instead, where graduates have more generous work permits after graduation and do not have to pay these extra taxes.
More Rules and Fraud Crackdowns
Besides new policy changes, the rules are being enforced more strictly.
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Students could lose their visa status if they don't report their job to SEVP within 90 days.
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Employers who create fake jobs or payroll records could face fraud charges. This could lead to the cancellation of students' I-20 forms and the loss of their legal status.
These new rules are meant to keep the OPT program honest, but they also make an already difficult system more stressful for students.
Global Effects on Universities, Employers, and Economies
If OPT is restricted, it would have a huge impact on different groups:
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Students (especially from India and China): They risk losing valuable job opportunities, will have to pay more, and may decide that a U.S. education is no longer worth it.
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Universities: They could see a sharp drop in international student enrollment, which would threaten the billions of dollars in tuition revenue they depend on.
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Employers: Businesses, especially in the tech and healthcare industries, may face even bigger shortages of skilled workers if international graduates leave the U.S. job market.
Canada and Australia are closely watching the situation. Their own work permit programs, such as Canada’s Post-Graduation Work Permit (PGWP) and Australia’s Temporary Graduate visa, offer more certainty and stability. This makes them increasingly appealing to Indian and other international students who are looking for a more secure path after graduation.
What Is the Future of the OPT Program?
While some changes, like stricter compliance checks, are already in effect, more significant proposals, such as ending the OPT program or adding new taxes, are still being considered by lawmakers. The final outcome of this debate could completely change how international students choose where to study.
What students can do now:
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Keep your records up to date: Make sure you are following all the reporting rules with SEVIS to keep your visa status.
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Look at other options: Learn about other ways to get work experience, like Curricular Practical Training (CPT), or how to get a direct H-1B visa after graduation.
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Stay informed: Watch for official updates from USCIS and SEVP so you are aware of any new policy changes.
Bottom line
The OPT program is a big reason why many international students come to the U.S. to study. But its future is now in danger because of new taxes, policy changes, and stricter rules. This is a huge worry for students from India and other countries. The fate of the OPT program will impact their careers and change the future of education around the world.
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