H-1B at $100,000: Trump’s visa fee hike rattles Indian students eyeing US jobs, lifts interest in Germany, Japan, Poland

The new fee doesn’t target students directly but shrinks their post-study options. Entry-level sponsorships are expected to decline, leaving opportunities concentrated in specialised STEM fields and higher-paying roles. For Indian families, the value of a US degree is now clouded by fresh uncertainty.

Mayank Kumar, former co-founder and MD of edtech firm upGrad, said, “Companies will reserve H-1Bs for only the highest-skilled, most valued talent. Its overall impact on the Indian student and talent migration story will be limited, since H-1B numbers are only a fraction of the 2.5 million Indians who pursue overseas education or jobs each year.”

Kumar, who now runs global workforce mobility platform BorderPlus, added that the bigger picture is redistribution, not restriction, with countries such as Canada, the UK, Germany and Australia competing harder to attract Indian professionals.

Will Indians skip the US?

Despite heightened concern, the US remains the most popular destination for Indian students. Industry watchers say that the country’s universities dominate global rankings, where Optional Practical Training (OPT) provisions allow STEM graduates to work for up to three years. But uncertainty is leading many families to keep backup options open.

Piyush Kumar, Regional Director for South Asia, Canada and Latin America at IDP Education, a student placement firm, said that the firm has already begun fielding questions from parents and students since the announcement. However, the impact may be limited to short term volatility.

“At this stage, we expect any impact to be more of a temporary hesitation rather than a structural decline,” he said, noting that students starting now would graduate years later, when the policy environment may look very different.

Is ROI now in doubt?

The return on investment (ROI) for US degrees is, however. increasingly under the scanner. A US education carries prestige but also steep costs, and if sponsorships dry up, families risk not recovering their investment. Advisors say questions about ROI now dominate conversations with parents planning for 2025 admissions and beyond.

Aman Singh, co-founder of GradRight, a Delhi-based fintech platform that helps students pick and finance universities, said the new fee will likely weigh on career outcomes.

“The ripple effects could be shorter hiring pipelines, fewer sponsorships, raising a question on the ROI of a US degree,” he said. Singh pointed out that similar executive actions have been attempted before but often stumble during implementation, suggesting the long-term impact may be less severe than initial fears.

How does this fit into the broader US climate?

Trump’s proclamation comes against the backdrop of an already unpredictable regulatory environment. In May, the US government paused all new student visa interview appointments, citing a system update, as Moneycontrol reported earlier. While presented as an administrative measure, the pause coincided with stricter screening norms, including closer scrutiny of applicants’ social media activity.

Piyush Bhartiya, co-founder of AdmitKard, said this stop-start environment has already unsettled students. “In a broader sense, the sentiment among students regarding studying abroad in the US is highly negative, since ambiguity regarding the country has been high for the last six months,” he said.

Which countries gain?

The shift in US policy is accelerating a diversification trend. Canada, the UK, Germany and Australia — all of which have eased post-study work regimes in recent years — are attracting more Indian students as families hedge their bets.

Akshay Chaturvedi, founder and CEO of Leverage Edu, a Delhi-based study-abroad and careers platform, said Europe is also emerging as a strong alternative. His firm has launched eight new student corridors into continental Europe this year and is building skilled immigration pathways for healthcare and hospitality. “Europe has been moving fast,” he wrote on social media, pointing to demand in Germany, Italy and Poland.

Other firms, like AdmitKard, have also reported upticks in searches for destinations like Japan, Finland, Sweden and Australia.

Is the American dream over?

Executives, however, agreed that US universities still offer unparalleled opportunities, particularly in STEM, and remain the most attractive destination for ambitious students. The current order is valid for only 12 months and may face legal challenges, but in the near term it raises the bar for employability after graduation.

The consensus: the American dream persists, but it is narrower and more expensive than before. Families are scrutinising ROI more closely and diversifying their choices, underscoring a shift from unquestioned faith in US education to a more cautious, calculated approach.