Foreign students already enrolled in US universities have been exempted from the recent hike in H-1B visa fees. This is relief for international students in academic research programmes who are undergoing optional practical training at US companies. But the numbers involved are small, and are unlikely to alter the market dynamics for Indian students studying in US universities. Indians constitute the biggest group of overseas students in the US, and their number has shrunk drastically this year. Uncertainty over job prospects after completing college is knocking off the US as the top draw for Indian students seeking degrees overseas. This is also being aided by other countries sweetening the welcome for Indian students.
The US is reversing its migration policy at a point when demographic changes are forcing much of the advanced world to turn to foreign students to fill up college classrooms. This will cause structural shifts in the market for higher education in the US and other G7 countries. The US has, so far, been most dependent on migration to augment its tertiary sector workforce. This involved intake both at the pre- and post-training stages. As entry barriers rise for foreign trained professionals in the US, there will be spillover effects on the market for higher education in the country. The quality of academic output at US universities will also be affected.
The cohort of Indian students in the US now face a thinning employment funnel at large companies that can absorb the enhanced H-1B visa fee. Smaller firms, especially startups, may have to scout for alternative jurisdictions where they can employ foreign students graduating from US universities. This imposes an additional cost on US innovation, apart from losing the ability to pull in overseas students. The top talent will, of course, still be headed for the US with its deep academia-business engagement. But other host nations are poised to witness a change in the profile of their international students and consequent changes to their academic output.
The US is reversing its migration policy at a point when demographic changes are forcing much of the advanced world to turn to foreign students to fill up college classrooms. This will cause structural shifts in the market for higher education in the US and other G7 countries. The US has, so far, been most dependent on migration to augment its tertiary sector workforce. This involved intake both at the pre- and post-training stages. As entry barriers rise for foreign trained professionals in the US, there will be spillover effects on the market for higher education in the country. The quality of academic output at US universities will also be affected.
The cohort of Indian students in the US now face a thinning employment funnel at large companies that can absorb the enhanced H-1B visa fee. Smaller firms, especially startups, may have to scout for alternative jurisdictions where they can employ foreign students graduating from US universities. This imposes an additional cost on US innovation, apart from losing the ability to pull in overseas students. The top talent will, of course, still be headed for the US with its deep academia-business engagement. But other host nations are poised to witness a change in the profile of their international students and consequent changes to their academic output.
