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US universities could feel green card crackdown before Indian IT firms, expert warns
With major employers facing green-card sponsorship suspensions and the US proposing steep fees tied to OPT, Indian students face greater uncertainty.
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US universities could face mounting pressure to attract Indian students as the Trump administration tightens employment-based immigration rules, suspends green card processing for major technology employers and proposes steep new fees for international graduates seeking work experience after completing their degrees.
The developments could reshape how Indian families assess the cost of studying in America.
Sanjay Laul, founder of MSM Unify, warned that universities could feel the impact of the changing immigration landscape before Indian IT companies experience significant operational consequences.
“Indian students are the backbone of America’s international talent pipeline,” Laul told Hindustan Times.
The US Department of Labor suspended eight companies from participating in the Permanent Labor Certification (PERM) program on October 8. The department cited alleged misuse of the program and concerns about its impact on American workers.
Also read: Trump administration's green card restrictions: Are Indian H-1B workers among those most at risk?
PERM is a key step in the employment-based green card process for foreign workers sponsored by US employers. The suspension could disrupt the permanent residency plans of employees whose employers are affected.
Indian students face uncertainty over the route from campus to green card
The stakes are significant for Indian students, who form the largest international student group in the US. According to the Institute of International Education’s Open Doors 2025 report, 363,019 Indian students were enrolled at US institutions in the 2024–25 academic year, accounting for about 31% of all international students in the country. Their numbers increased 10% from the previous year.
Participation in Optional Practical Training (OPT) among Indian students also rose sharply, increasing 47.3% to 143,740 in 2024–25, according to the report’s data. OPT allows eligible international students to gain practical work experience related to their studies.
“For most of them the plan is the same: study, work on OPT, move to an H-1B and eventually a green card,” Laul told HT.
The pathway, however, is not automatic. OPT provides temporary work authorization, while the H-1B visa allows employers to hire foreign professionals in specialty occupations. Employer-sponsored permanent residency involves a separate process, with PERM serving as an important initial step in many cases.
“Suspending the largest employers of Indian graduates, including Infosys, TCS, Wipro and HCL, from green card sponsorship removes the last rung of that ladder,” he said.
The companies have also pushed back against concerns about the operational impact. Infosys said it did not expect a material impact from the suspension and was prepared to engage with US authorities.
Proposed $70,000 OPT fee adds to universities’ concerns
A separate proposal could place additional pressure on universities that recruit international students. The Department of Homeland Security published a proposed rule that would require institutions to pay $70,000 for an initial OPT recommendation for an F-1 student and $30,000 for each subsequent recommendation, including a STEM OPT extension.
The proposal remains open for public comment until November 9, 2026, and has not taken effect. Under the proposal, universities could potentially pass the cost on to students or employers.
The current application fee for OPT is a fraction of the proposed amount. If finalized, the measure could make post-study work opportunities more expensive to provide and create difficult decisions for institutions and prospective students.
For Indian graduates, a higher cost associated with the OPT program could complicate decisions for students who are already weighing education loans, living expenses and uncertainty over future visa sponsorship.
H-1B fee uncertainty could influence students’ plans
The proposed OPT fees follow the Trump administration’s attempt to impose a $100,000 fee on certain new H-1B petitions involving workers outside the US. The measure was extended in September, but two federal judges have blocked its implementation.
Together, the developments have increased uncertainty around the transition from international education to employment and permanent residency.
“Coming after last year’s $100,000 H-1B fee, and with student visas issued to Indians already down by a third, families will now price this risk into one of the biggest financial decisions they make,” he added.
“We expect more students to weigh the UK, Europe, Canada and Australia, and those who still choose the US will do so with a clear Plan B,” Laul added.
Whether the latest measures lead to a sustained shift in student choices remains to be seen. Indian enrolment in the US increased in 2024–25, despite a decline in the number of new international students overall. Future application and enrolment figures will help establish whether immigration uncertainty changes that trajectory.
“America’s universities will feel this before its IT industry does,” Laul said.
