Published: 10 October 2026 | SkilledB Overseas Education, Madurai
If you have been following US student visa news for the last few weeks, you have probably heard the number “$100,000” attached to OPT (Optional Practical Training). This week, that rumour turned into an actual document. On 7 October 2026, the Department of Homeland Security announced a proposed rule on OPT fees, and on 8 October 2026 it was published in the Federal Register. The real figures are different from the rumour, and the details matter a great deal for any Indian student planning to study in the United States.
This guide explains exactly what the proposal says, who it would affect, what is still uncertain, and how to plan your study abroad decision without panic.
Please note: this is a proposed rule, not a final rule. Nothing described here is in force today. Always confirm the latest position with official sources and your university’s international office.
What Was Announced This Week
DHS, working through US Immigration and Customs Enforcement (ICE), has proposed a new fee structure for OPT, the work authorisation that lets F-1 students work in their field of study after (or sometimes during) their degree.
The core numbers in the proposal are:
- $70,000 for the first time an F-1 student is recommended for OPT after the rule takes effect.
- $30,000 for each subsequent OPT recommendation, which includes the STEM OPT extension.
Add the two together and you get $100,000 for a student who uses both initial OPT and the STEM extension. That is almost certainly where the “$100,000 OPT fee” headlines came from. The proposal itself, however, is built around two separate charges, not a single six-figure payment.
The proposal was cleared in mid-September after federal review, announced on 7 October, and published on 8 October 2026. The public comment period on the main proposal runs for roughly 30 days, to about 9 November 2026, with a separate, longer comment window connected to the paperwork-related part of the rule that runs into December.
Who Actually Pays the Fee? This Is the Surprising Part
Most people assumed the student would pay. The proposed rule is more complicated.
Under the draft:
- The school pays the fee to the government. The university (the SEVP-certified institution) must pay the applicable fee before its Designated School Official (DSO) can enter the OPT recommendation into SEVIS, the system that tracks F-1 students.
- The school may pass the cost on. According to law-firm summaries of the proposal, the university would be allowed to pass the cost to the individual F-1 student, spread it across all students, or recover it from OPT employers.
- Refunds are possible. If the student’s OPT work permit application is denied, or the student never receives the work permit, the school could seek a refund.
- Schools are not obliged to recommend OPT. DSOs can choose not to recommend a student for OPT, and can choose not to pay the fee for a particular student.
Think about what this means in practice. A university could decide to absorb the cost for its strongest students and refuse it for others. It could add a mandatory “OPT fee” to tuition for all international students. It could ask employers to pay. Or it could quietly stop recommending OPT for some programs. Which of these happens will depend on each institution, and nobody knows yet. This is exactly why you should ask universities about their intentions before you pay a deposit.
Who Would Be Affected, and Who Would Not
The proposed transition rules are important, because they separate current students from future ones.
- The rule would take effect 60 days after a final rule is published in the Federal Register, not on the date of this proposal.
- It would apply to F-1 students who receive a DSO recommendation for OPT on or after that effective date.
- Students who are already on OPT, who have already been approved, or who already received a DSO recommendation before the effective date would not be charged.
So, if your plan is to start a US degree in January or August 2027, you should assume that by the time you graduate, the final rule (if it survives) may well apply to you. A student who is already midway through a degree and receives an OPT recommendation before the effective date would not be affected.
Why Is DHS Doing This?
The published material describes the fee as a way to discourage what it calls abuse of OPT and to leave OPT for “the most promising” students. The agency also argues that US universities should be able to attract foreign students without relying on OPT and STEM OPT. Higher-education reporting notes that OPT participation has more than doubled even as overall international student numbers changed, which is part of the government’s concern.
Critics, including universities and international education groups, see it differently. Their argument is that a fee of this size is not a cost-recovery charge at all, but a barrier designed to shrink the programme. It is widely expected that if the rule is finalised, it will be challenged in court, just as several other 2026 immigration actions have been.
Why This Matters So Much for Indian Students
India is the largest source of international students in the United States, and the OPT and STEM OPT route has long been the central part of the value proposition for Indian STEM students. A typical plan looks like this: complete a master’s degree, work for up to three years on OPT and STEM OPT, get selected in the H-1B lottery, and then wait in the green card queue.
If the fee is finalised as proposed, that plan changes in three ways.
1. The financial maths of a US degree changes. A US master’s degree already costs a large amount in tuition and living expenses. If the full $100,000 were ever passed on to a student, the total investment would climb sharply. Even if universities or employers absorb part of it, the cost has to land somewhere.
2. Employers become more selective. If employers are asked to share the cost, they may prefer candidates from top universities, candidates with prior work experience, or candidates in the highest-demand skills. Entry-level graduates from lower-ranked programs would feel this first.
3. Education loans become riskier. Families who finance study abroad through loans need to be extra careful. A loan sanctioned today assumes a post-study work period that may become more expensive or less certain. Ask your lender how repayment would work if OPT turned out to be shorter, more expensive, or unavailable.
Three Realistic Scenarios
Nobody can predict the outcome, but it helps to think in scenarios rather than headlines.
Scenario A: The rule is finalised largely as proposed and survives court challenges. OPT becomes a premium option. Universities adopt different policies. Some students find that the US is no longer the best value for them, and more Indian students shift toward Canada, Germany, the UK, Australia, Ireland and other destinations.
Scenario B: The rule is finalised but a court blocks it. This has happened more than once this year with other US immigration measures. The fee would be paused while litigation continues, and uncertainty would continue for months.
Scenario C: The rule is substantially changed or dropped. Public comments, political changes or legal advice can lead agencies to soften or withdraw proposals. This is the least predictable outcome, but not impossible.
A sensible study abroad plan works under all three.
What You Should Do Now
If you are planning to apply to US universities for 2027
- Do not cancel your plans because of one proposed rule. The US still has unmatched research funding, industry depth and university choice.
- Ask every shortlisted university in writing: if the OPT fee is finalised, will you pay it for students, pass it on to students, or leave it to employers? Many will not be able to answer yet, but their response will tell you something.
- Compare total cost, not tuition alone. Add realistic scenario costs for a possible OPT fee, rising visa costs and a possible shorter post-study period.
- Build a second shortlist. Have a strong plan B in a country where the post-study work route is clearer.
If you are already studying in the US
- Speak to your DSO about timing. Under the proposal, students who already have an OPT recommendation before the effective date are not charged.
- Do not rush into unplanned decisions, such as taking extra semesters or switching programs only because of this rule, without professional advice.
- Pay attention to separate scrutiny of Curricular Practical Training (CPT), which international student offices and immigration lawyers are also discussing this autumn.
If you want to comment on the rule
Public comments are submitted through regulations.gov. Comments from students, universities and employers can influence what happens next, particularly when they explain concrete impacts on real people.
How Post-Study Work Compares in Other Countries Right Now
It is useful to place the US proposal next to what other destinations currently offer. These are the settings as of this week:
- United Kingdom: The Graduate Route gives two years if you apply on or before 31 December 2026, and 18 months for applications from 1 January 2027. The application fee is £937 plus the Immigration Health Surcharge. PhD graduates keep three years.
- Canada: Master’s graduates can qualify for up to a three-year PGWP if the programme meets the requirements. Programme choice matters, as many college programs are not eligible.
- Australia: The Temporary Graduate visa (subclass 485) remains the post-study route, alongside the new October 2026 changes to onshore student visa applications.
- Germany: Graduates of German universities can apply for an 18-month job seeker residence permit, and the EU Blue Card is the typical route to a longer stay.
No country offers certainty. The point is not that one is “safe” and another is “dangerous”. The point is to avoid building your whole plan on a single rule that is still moving.
Ten Questions to Ask Every US University Before You Pay a Deposit
Because the proposal leaves so much to each school’s discretion, the most useful thing a family can do is ask direct questions now. Put them in an email so you have a written record.
- If the OPT fee is finalised, does the university plan to pay it for students, pass it on, or leave it to employers?
- Would the fee apply to every student, or only to some programmes?
- Does the university expect to recommend OPT for all eligible students, or only some?
- If the fee is passed on, when would it be charged: at graduation, at the time of the OPT application, or earlier?
- Would the university offer instalments or financial aid for this cost?
- Does the university have employers who pay for OPT-related costs for graduates?
- What share of last year’s graduates in my programme worked on OPT or STEM OPT?
- What is the placement rate for my programme within six months of graduation?
- Does the programme include a co-op or internship that is not based on OPT?
- How will the university update international students if the rule changes?
Some universities will give a vague answer. That is normal at this stage. A clear, transparent reply is a good sign, and silence is a signal too.
A Simple Budget Stress Test
Here is a worked example using round numbers, not predictions. Imagine a student planning a two-year US master’s. Suppose tuition and living costs total a large sum. If the OPT proposal were finalised and the university passed the full $70,000 initial fee to the student, plus $30,000 for a STEM extension, the extra cost would be $100,000 on top of everything else. Most families could not absorb that without a major change in plan.
Now imagine three alternatives:
- The employer pays part or all of the fee. The cost to the student falls sharply, but the student must find an employer willing to do so.
- The university absorbs the fee for strong students. The student pays nothing, but the university may be selective.
- The student chooses a different country. The student avoids the fee entirely but faces the rules of another system.
Ask yourself: if the worst case happened, would your family still be comfortable with the degree? If the answer is no, build a second option now rather than later.
What Employers May Do
Employers hire international graduates for many reasons: skills, language ability, flexibility and the shortage of local candidates in some fields. But many employers watch costs closely. If a fee of this size applies, some employers may:
- Hire only from a small number of universities where they already have strong relationships.
- Prefer experienced candidates over fresh graduates.
- Offer internships and contract roles that do not depend on OPT.
- Shift hiring to teams outside the United States.
- Absorb the cost for roles that are very hard to fill, such as senior engineering or specialised healthcare.
For students, that means your profile needs to stand out. Internships, projects, research, certifications and strong communication skills help. So does a clear story about why your skills fit a particular employer.
How to Write a Useful Public Comment
Public comments are one way for people affected by a rule to be heard. The agency must consider substantive comments, even though it does not have to agree with them. If you or a family member want to submit one:
- Be specific. Explain how the rule would affect your plans, such as a study loan, a research project or a family business.
- Be factual. Use numbers where you can and avoid exaggerated language.
- Be respectful. Comments that are polite and clear are more likely to be taken seriously.
- Submit on time. The main comment period ends around 9 November 2026. Use the official portal and keep your confirmation.
You do not have to comment. But if you do, a personal account can add real information to the record.
Frequently Asked Questions
Is the $70,000 OPT fee in force now?
No. It is a proposed rule published on 8 October 2026. It would not apply until DHS reviews comments, publishes a final rule, and the final rule’s effective date (proposed as 60 days after publication) arrives.
Is it $100,000 or $70,000?
The proposal sets $70,000 for the first OPT recommendation and $30,000 for each later one. A student who uses OPT and then STEM OPT would face $100,000 in total under the proposal.
Will I personally have to pay?
It depends on your university. The proposed rule makes the school responsible for paying the government, but allows the school to pass the cost to the student, to all students or to employers.
Does this affect students who are already on OPT?
Under the proposed transition rules, no. It would apply only to students who receive a DSO recommendation on or after the effective date of a final rule.
Does this affect the H-1B?
That is a separate set of proposals and court cases. See our companion blog this week on the current status of the H-1B fee.
Should I still apply for US universities?
That is a personal decision. Many students will still choose the US, but you should do so with a realistic budget, a backup plan and clear answers from your universities.
The Bottom Line
The proposed OPT fee is the most significant change to the US post-study work route in years, and it is real enough that every Indian student targeting the US should plan around it. But it is still a proposal. The comment period is open, a final rule is not guaranteed, and legal challenges are widely expected. The smartest response is to stay informed, ask universities direct questions, and keep more than one good option on the table.
SkilledB Overseas Education, Madurai — honest, up-to-date guidance on studying and working abroad, from university selection to visa filing.
Contact: +91 9884015188