The Optional Practical Training (OPT) program has been a cornerstone of international education for decades, providing real-world work experience to students from around the world. However, with recent proposals to eliminate or restrict OPT, Indian students and others are facing an uncertain future in the United States. The stakes are high, not only for individual careers but also for the global education landscape.

Understanding the Importance of OPT

OPT is a work authorisation program that allows F-1 visa holders to work in roles directly related to their field of study. Students receive 12 months of work authorization during or after graduation, with an additional 24 months for STEM graduates, making up to 36 months possible. This has made OPT a major draw for international students, who collectively contributed $40 billion to the US economy in 2024.

According to recent estimates, over 200,000 students use OPT annually, with the majority coming from India, China, South Korea, and Brazil. For these students, OPT is not optional – it’s essential for career prospects and financial justification of their education investment. The program has been a key factor in attracting international students to US universities, with many enrolling in master’s or higher degree programs specifically attracted by the prospect of work experience through OPT.

The Impact on Indian Students

India sends over 270,000 students to the US each year, most in STEM fields like computer science, data analytics, and engineering. Nearly 80% of Indian students in the US enroll in master’s or higher degree programs, specifically attracted by the prospect of work experience through OPT. Without OPT:

Many students would lose their only US work experience, reducing global employability.

Families investing ₹50–70 lakh or more in American degrees would see a poor return.

Indian enrollment in US universities could decline sharply, similar to trends seen when Canada and Australia tightened work rules in previous years.

The Proposals to End or Restrict OPT

Critics of OPT argue it undercuts US workers and lacks a clear legislative basis. Key voices include:

Jessica Vaughan, Director of Policy Studies at the Center for Immigration Studies, advocating for stricter student visa programs.

Joseph Edlow, expected to lead USCIS, pushing to eliminate OPT work authorisation altogether.

The Financial Burden on Students

New tax rules could add to financial strain on students. Currently, students on OPT are exempt from FICA taxes (Social Security and Medicare), a benefit worth 7.65% of their salary. Under new proposals, this exemption could be removed:

Students and employers must pay 6.2% Social Security tax and 1.45% Medicare tax each.

For a student earning $70,000 during OPT, that’s $5,355 in additional taxes.

The Global Ripple Effect

Competing nations are watching closely. Canada’s Post-Graduation Work Permit (PGWP) and Australia’s Temporary Graduate visa offer more stability, making them attractive alternatives for Indian and global students seeking certainty:

• Canada’s PGWP provides 3 years of work authorization after graduation.
• Australia’s Temporary Graduate visa offers 2 years of work experience.

What Lies Ahead?

The outcome could redefine global student mobility. While some changes like stricter compliance checks are already in motion, others – such as ending OPT or imposing taxes – depend on legislative processes:

Students and universities must stay vigilant and adapt to changing policies.

Employers and governments worldwide will closely monitor the US’s move on OPT.

Final Analysis

The OPT program has long been a cornerstone of US higher education’s global appeal. But with tax proposals, policy attacks, and enforcement crackdowns, its future hangs in the balance. For Indian students and others around the world, the stakes couldn’t be higher. Whether OPT survives or collapses will shape not only individual careers but also the global education landscape in the coming years.

Source: The Times of India