From Study to Work, New H-1B Fee and F-1 Visa Rules Change the Game for Students

Key Takeaways: 

• The U.S. has introduced a hefty fee for H-1B visa petitions filed from outside the country, making it costlier for graduates who leave the U.S. before transitioning to work status. 
• International students who stay in valid F-1 status and apply for H-1B change of status from within the U.S. are not required to pay this fee, emphasizing the importance of maintaining continuous legal status.
• The Department of Homeland Security may soon replace the open “duration of status” rule with a fixed four-year visa period, requiring extensions for longer programs and tightening oversight of student stays. 

International students holding F-1 Visas face significant policy shifts affecting their academic journey and career transition in the United States. Three major developments demand immediate attention from the over 330,000 Indian students and millions of international students currently pursuing education in America.​ Under the new H-1B fee and F1 Visa rules, students and foreign professionals face evolving compliance expectations that demand careful documentation, timely filing, and financial readiness.

H-1B Fee Exemption for Students

The presidential proclamation dated September 19, 2025, announced a major $100,000 charge on new H-1B visa petitions filed from outside the United States. This fee takes effect for applications submitted beginning 12:01 a.m. EDT on September 21, 2025, and applies to foreign applicants without existing H-1B authorization.

The exemption brings relief to F-1 students currently in the United States. Students maintaining valid F-1 status who apply for H-1B change of status from within the country avoid the fee entirely. The exemption covers those on Optional Practical Training (OPT) and STEM OPT extensions, provided they remain in the United States throughout the application process.​

USCIS clarified October 20, 2025, that the fee does not apply to change of status scenarios. Students transitioning from F-1 to H-1B status while remaining in America face no additional financial burden from this policy.​

F-1 Students Must Stay in Status to Avoid Fee

Even with current safeguards, certain circumstances may still make F-1 visa holders liable for the $100,000 fee. Students who depart the country before their H-1B petition is fully processed, attempt to reapply for a visa overseas after losing F-1 eligibility, or have their change-of-status request denied could face this charge. The best way to avoid the risk of additional costs is to maintain continuous F-1 status and ensure that all filings occur inside the U.S.​

Also Read: H1B visa 2025

DHS Proposes Four-Year Limit on F-1 Visas 

The Department of Homeland Security published a proposed rule August 28, 2025, potentially ending the “duration of status” system that has operated for nearly fifty years. Currently, students remain in the United States for their entire academic program length while maintaining full-time enrollment and visa compliance.​ The proposed framework would impose a fixed maximum period of four years, after which students must request extensions from USCIS. Students would receive admission for their program length or four years, whichever comes first.​

Extension Rules and Restrictions for F-1 Visa Holders

Students seeking additional time for academic completion, OPT involvement, or doctoral pursuits must apply to USCIS via Form I-539. The process requires submission of fees, documentation of financial resources, biometric data, and occasionally, attendance at an interview.

Additional restrictions include undergraduate students completing one academic year before transferring schools, graduate students unable to change programs mid-course, and prohibition of new degrees at the same or lower level while maintaining F-1 status. Language study duration faces a 24-month cap.​

F-1 Grace Period Reduced to 30 Days 

The grace period following study completion would shrink from 60 days to 30 days under the proposed rule. Students exceeding the new 30-day limit without departing or applying for status change could begin accruing unlawful presence.​ Extension of stay denials after original admission periods expire would eliminate grace periods entirely. Students and dependents must depart immediately, with failure to do so triggering unlawful presence accumulation the day after denial.​

DHS Proposal Awaiting Public Feedback

Public feedback and revision phases follow the proposal of the new duration rule before it can move toward implementation. National bodies and other major stakeholders are currently assessing and submitting their remarks. Once approved, the finalized rule will become effective on a date to be officially announced.​ DHS states the proposed changes aim to improve oversight, ensure academic progress, and create consistency across nonimmigrant classifications. The agency argues that assigning fixed end dates allows regular compliance reassessment and reduces abuse opportunities.​

Plan Ahead for F-1 to H-1B Transitions 

F-1 students should maintain enrollment, follow institutional guidelines, and plan visa transitions carefully amid current rules and proposed changes. Universities provide guidance ensuring students remain compliant while pursuing academic and professional objectives.​

The H-1B fee exemption for in-country status changes offers financial and career advantages, while the proposed fixed-duration F-1 visa highlights potential future adjustments. Coordination with designated school officials and understanding both immediate policy updates and proposed modifications enables informed decision-making regarding studies, internships, and post-graduation employment.​

Looking for the best deals on India to USA flights to start your studies or return for OPT? With the new H-1B fee and F1 Visa rules, planning your travel carefully is more important than ever. You can also book hassle-free through Indian Eagle flight tickets to secure affordable options and flexible schedules while staying compliant with visa timelines.

Frequently Asked Questions 

What is the new $100,000 H-1B fee?

The U.S. government has introduced a $100,000 fee for H-1B visa applications filed from outside the United States. F-1 students who apply for a change of status within the U.S. (e.g., on OPT or STEM OPT) are exempt from this fee. 

When does an F-1 student need to pay the fee?

An F-1 student may owe the $100,000 fee if they leave the U.S. before H-1B approval, apply abroad after losing status, or face a change-of-status denial. Staying in valid F-1 status and filing within the U.S. prevents this. 

What is the proposed four-year F-1 duration limit? 

The DHS has proposed limiting F-1 visas to four years, requiring students to apply for an extension if their studies take longer. 

How can F-1 students apply for extensions? 

F-1 students can extend status via Form I-539 with fees and documents, following rules on transfers, program changes, and the 24-month language study limit. 

How is the grace period changing after study completion?

The grace period after study may drop from 60 to 30 days, with any denied extension removing it completely and overstays leading to unlawful presence.