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Invest2 publishersIndependently confirmed2 min readPublished

DHS proposes charging universities $70,000 for each foreign student entering OPT

Homeland Security proposed making US schools pay $70,000 for each international student entering the OPT work program, plus $30,000 per renewal. Colleges would be paying for one of their main recruiting draws, and Fortune reported that new foreign enrollment fell 17% last fall.

The Investor · Invest desk

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What happened

  • Schools would pay before recommending a student for OPT, and USCIS would not grant work authorization until the fee is paid, DHS said.
  • DHS presented the fee as a response to fraud and abuse, calling the program a "pipeline for cheap foreign labor."
  • The public has 60 days to comment before DHS can finalize the rule, and higher education or business groups could sue to delay it.
  • Overall figures for this fall are not yet out, but some colleges report international enrollment drops of 30% to 40%, according to ACE's Sarah Spreitzer.

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Why it matters

  • constraint Tech employers that hire international students for technical roles get no bill under the rule, but their OPT hiring becomes limited to graduates whose schools agree to pay.
  • precedent Losing in court may not end the policy, because the administration is already trying another way to push the H-1B fee above $100,000.
  • exposure For the thousands of Chinese graduates SCMP says are affected, access to US work experience would turn on whether their school will spend $70,000 on each of them.

Both reports describe a rule that bills the school [1]. Payment is due before the school can recommend a student [3], so the decision about each graduate now sits with a college budget office.

The cost per year of work depends on the major. Most graduates get one year of work after graduation, and certain STEM majors get two more [4]. For the first group, $70,000 buys twelve months [2]. The reports do not say how the STEM extension will be billed. If it counts as one $30,000 renewal, a STEM graduate who uses all three years costs the school $100,000 [17], or about $33,000 per year of work [19]. That total matches the $100,000 H-1B fee that Doug Rand, a former senior adviser at US Citizenship and Immigration Services under Biden, says the courts struck down [18][8].

The first possible outcome runs through the courts. Rand predicted the OPT fee would go the same way as the H-1B charge [8]. A federal court in September also blocked the administration's four-year limit on student stays, which was finalized this summer [15]. Rand wrote in an email that the US should "not use an exorbitant fee as a pretext to send them packing" [10]. If the rule survives, schools can pay and try to recover the money from later groups of foreign students. Or they can stop recommending students, and those graduates lose OPT once the school says no [3].

Colleges recruit overseas students as a source of tuition revenue [7], and OPT is part of the pitch. "We know that OPT is one of the reasons that international students choose to study in the United States because they're able to have that post-graduation work experience," said Sarah Spreitzer, a vice president at the American Council on Education [13].

In my view, the last two outcomes lead to the same result. A school that pays will want to recover $70,000 per graduate from future foreign students [2]. A school that refuses has to tell applicants that OPT is off the table. Either way the cost falls on enrollment, or rather on the next applicant deciding which country to study in. The case against this view is Rand's: a court strikes the fee down before any school pays, and the damage is limited to the comment period and the lawsuits. Two things would show I have this wrong: several colleges publicly agreeing to absorb the fee without raising foreign tuition, or the count of new international students holding steady next fall.

What to watch

  • Whether DHS finalizes the rule once the 60-day comment period closes, and whether university or business groups sue to block it.
  • Whether the final rule bills the two-year STEM extension as a single $30,000 renewal or as more than one charge.
  • Whether any college says publicly that it will absorb the $70,000 fee or stop recommending students for OPT.
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