US Student Visa Rule Change Could Harm Tech Sector, Impact Indian Graduates

A proposed change to US student visa rules could make it much harder for international graduates, especially Indians, to stay and work in America after completing their studies, according to Danielle Goldman, CEO and co-founder of Build.

Goldman warned that the proposal could worsen labour shortages in key sectors such as AI, technology and engineering by reducing pathways that many international students currently use to remain in the country and build their careers, according to the American Bazaar.

The concern centres on a proposal issued by the Department of Homeland Security (DHS) last month.

Under the current system, most international students on F-1 visas are admitted under a policy known as "Duration of Status", which allows them to stay in US as long as they maintain their student status and meet visa requirements.

The proposed rule would replace that arrangement with a fixed period of stay of up to four years. Students who need more time to complete their studies or participate in post-graduation work programmes would have to seek approval from US Citizenship and Immigration Services (USCIS).

Speaking about the potential impact, Goldman said Indian students could be among the most affected groups because they make up one of the largest international student communities in US and participate heavily in the H-1B visa system.

“Indian students are one of the largest student populations in the United States,” Goldman said.

She said: “They’re getting the jobs, they’re working through school, they’re getting companies to say, ‘Yes, we will sponsor you,’ and they’re entering the H-1B lottery at a very high rate.”

Many international graduates use the Optional Practical Training (OPT) programme to gain work experience after university. During this period, employers often invest in training and developing talent while sponsoring workers for the H-1B visa lottery. However, not all applicants are selected.

Goldman noted that many companies have traditionally relied on alternative options to retain skilled workers when H-1B sponsorship efforts fail. One of the most common routes has been Day 1 CPT programmes, which allow some students to continue working legally while enrolled in another academic course.

According to Goldman, major employers have frequently encouraged workers to use this option when they were unsuccessful in obtaining an H-1B visa.

She believes the proposed rule would restrict that pathway.

Under the new framework, students who have already completed a degree at a certain academic level would generally be unable to enrol in another programme at the same level simply to maintain work authorisation.

“For anyone who already has a master’s degree, they’re not going to be able to go back and say, ‘I need another master’s degree because I need work authorization to continue working,'” Goldman said.

Instead, some workers may have to pursue higher qualifications, such as doctoral degrees, to remain eligible to stay in the country.

She said: “That’s not reasonable for people. They don’t want to sign up for a five-year Ph.D. program when they’re a data scientist and they’re using machine learning every day and already have a master’s degree.”

Goldman warned that thousands of highly skilled workers, including many Indian nationals who have repeatedly missed out in the H-1B lottery, could be left searching for alternative immigration options.

She also suggested that major employers may need to rethink how they retain international talent if the proposal moves forward.

“Amazon and Meta and a lot of these companies that relied on that solution to retain their talent who they’ve invested in during the OPT period, that’s not going to be possible anymore, and they’re going to have to think of solutions,” Goldman said.