WASHINGTON, DC: International students in the United States could face a dramatic increase in the cost of obtaining post-study work experience under a new proposal from the Department of Homeland Security (DHS).Under the proposed rule, a $70,000 fee would be charged for a student’s initial participation in the Optional Practical Training (OPT) program, while a $30,000 fee could apply to any subsequent OPT participation. The proposal was announced on October 7, but the fees are not currently in effect.
The DHS plans to accept public comments from October 8 through November 9 before deciding whether to issue a final rule. If implemented, the measure could have a significant impact on thousands of international students who depend on OPT to gain professional experience in the United States after completing their studies.
OPT is a temporary employment authorization available to eligible students in F-1 status. It allows graduates to work in jobs directly connected to their academic field. The program is especially important for international graduates in science, technology, engineering and mathematics, who may qualify for an additional 24 months of STEM OPT after the initial 12-month period.
Under the proposed system, the fee would be paid by SEVP-certified educational institutions before their designated school officials recommend students for OPT through the Student and Exchange Visitor Information System (SEVIS). DHS says U.S. Citizenship and Immigration Services would not approve employment authorization if the required payment had not been made.
Importantly, the proposed fee would not be connected to a particular employer. Instead, it would apply when a school recommends an F-1 student for OPT, with the collected money going into the U.S. Treasury.
DHS says the proposal is intended to address fraud, abuse and weaknesses in the immigration system while protecting American workers. The department has alleged that some schools, employers, students and designated school officials have exploited existing OPT rules through questionable worksites and so-called “pay-to-stay” arrangements.
The administration argues that requiring schools to bear a substantial financial cost could encourage them to conduct greater scrutiny before recommending students for OPT. DHS has also said that OPT should not become a route for employers to obtain inexpensive foreign labor at the expense of U.S. workers.
For international students and American universities, however, the proposed $70,000 price tag could become a major point of concern. Universities that rely heavily on international enrollment could face difficult decisions about whether they can afford to recommend students for the program, while students could question whether pursuing a U.S. education remains financially viable if post-graduation work opportunities become dramatically more expensive.
At present, students who meet the eligibility requirements can generally obtain up to 12 months of OPT at each educational level, with qualifying STEM graduates potentially receiving an additional 24-month extension. The proposed rule therefore represents a potentially major shift in the economics of international education and post-study employment in the United States.
The key point is that this is still a proposal—not a current $70,000 requirement. Public comments will be accepted before DHS determines whether to move forward with a final rule.