The proposed $70,000 OPT fee has sparked concern among international students considering education and post-study work opportunities in the United States. However, the fee is not currently an effective charge paid directly by students and has not become law.
The US Department of Homeland Security (DHS) has proposed charging SEVP-certified schools $70,000 for an initial Optional Practical Training (OPT) recommendation and $30,000 for a subsequent OPT recommendation.
The proposal, announced on October 7, is aimed at addressing fraud and abuse in the OPT system and protecting US workers. If finalised, however, it could have wider financial implications for universities, students and employers.
What Is OPT?
Optional Practical Training allows eligible F-1 students to undertake temporary employment related to their field of study.
Students can generally receive up to 12 months of OPT at each education level, while eligible STEM graduates may qualify for an additional 24-month extension.
For many international students, OPT is an important part of the decision to study in the US because it provides an opportunity to gain practical American work experience after graduation.
Who Would Pay the Proposed Fee?
Under the proposal, SEVP-certified educational institutions would pay the fee before recommending a student for OPT.
That means the proposed $70,000 charge is formally directed at institutions rather than students. However, there is uncertainty over whether universities could eventually pass some of the additional cost to students or whether employers could consider the expense when making hiring decisions.
For international graduates competing for entry-level jobs, a significant additional immigration-related cost could potentially affect hiring decisions.
The proposal could also alter how students calculate the overall financial return from studying in the US, particularly when tuition and living expenses are already substantial.
What Happens Next?
The proposal is still undergoing the rulemaking process. DHS is scheduled to accept public comments from October 8 through November 9, meaning the proposal could be modified before a final rule is issued.
International students and prospective applicants therefore should not treat the $70,000 figure as an immediate OPT charge.
The proposal nevertheless signals a potentially significant change in the economics surrounding post-study employment in the US. Students considering American universities will need to follow further announcements and consult their institutions for information about how any final rules could affect their OPT plans.
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