The ongoing standoff between the US government and Ivy League universities, along with stricter post-study visa rules, increasing cancellations of H-1B visas, and high rejection rates, is weighing heavily on the minds of Indian students planning to pursue higher education in the US. Study abroad platforms have reported a 30% drop in applications in recent weeks, as students grow increasingly cautious about investing time and money in a country facing policy uncertainty.
A reduction in university funding, stricter work permit regulations, and rising student visa rejections are significantly deterring Indian students from choosing the US for higher education. The current trend indicates a decline of around 30%. With rising costs, fewer scholarships, limited post-study work opportunities, and growing uncertainty, many students — especially those from middle-class or ROI-focused backgrounds — may shift toward more welcoming destinations like Ireland, the UK, Germany, and Australia,” said the head of a study abroad platform with significant exposure to the US market.
“The students are apprehensive about the Trump administration, and as a result, many of them are holding on to their admission offers from the US colleges, taking time to deposit admission fees, and rethinking their decision,” said Karunn Kandoi, founder and CEO of Vidysea Education.
Take the post-study work visa, for instance. The US government may introduce legislation to terminate the Optional Practical Training (OPT) programme, which currently allows international students to work in the US for 12 months after graduation. Students with STEM (Science, Technology, Engineering, and Mathematics) degrees are eligible for a 24-month extension under this programme.
The recent standoff between Ivy League universities such as Harvard, Princeton and Columbia and the US government doesn’t augur well for students, as the federal funding freeze could lead to fewer scholarships and higher tuition fees.
“We are expecting a drop in US applications, especially for STEM and postgraduate programmes, with Indian students increasingly prioritising destinations that offer affordability, stability, and clearer career pathways. Even those students who were looking at the US as the only option are in the wait-and-watch mode, and preparing a secondary destination option,” said Kandoi.
Experts say the post-study outlook for students is becoming increasingly hostile. For instance, a tougher immigration stance and rising layoffs in sectors like tech and manufacturing are affecting H-1B visa holders, with recent reports of visa cancellations.
“The Indian students are concerned, but we still haven’t seen any dip in the visa applications,” said Lindsey Lopez, senior director (US partner relations) at ApplyBoard. Anecdotally, study abroad platforms believe that the US visa rejection rate in the first four months of 2025 stood at nearly 50% as compared to 35% in the past year.
In January, the US Department of Homeland Security had introduced new rules that were aimed at modernising the H-1B programme by streamlining the approval process, increasing its flexibility to allow employers to retain talented workers, and improving the integrity and oversight of the programme.
For the past two years, India has been sending the highest number of students to the US (29.4% of the total enrolments in 2023-24) followed by China and South Korea.