After Donald Trump introduced a hefty fee for companies hiring H-1B visa holders and tightened immigration rules to favour American workers, many Indian students have started rethinking plans to study in the US.  Many worried that pursuing higher education abroad could become riskier and more expensive.

Yet, Geoffrey Garrett, Dean of USC’s Marshall School of Business, and Jared Grusd, Adjunct Professor of Entrepreneurship, say the university has seen record enrolments from India across both undergraduate and graduate programs.

H-1B: Less intimidating than it seems

In an interview with the Indian Express, Garrett explained that Indian students do not immediately need an H-1B visa upon graduation. Instead, they can rely on Optional Practical Training (OPT). This option allows STEM graduates,  including all degrees from the Marshall Business School, to work in the US, for up to three years after completing their studies. “The headlines around H-1B may sound alarming at first,” Garrett said. “But when you look at the details, it’s not as intimidating as it seems.”  He further explained, “We were worried that we were going to lose a lot of international students. That actually didn’t happen. And so I think what’s really going on is that for the top quality places,  international students have a global perspective.” He continued, “and for universities like USC that where international students are our lifeblood.”

Garrett explained that while the process of getting students into the US workforce has become more complex, larger companies are likely to absorb the new costs. “The process of hiring Indian students has become harder and more expensive, but big American companies can manage it. The roughly $100,000 cost is spread over six years, so it’s not a huge problem for them,” Garrett explained.

Cultural fear among Indian students

Addressing the concern that Indian students may no longer be welcome in the US, Garrett said, “I have two reactions. First, California is demographically different. If you walk down Trousdale Parkway in the middle of the day at USC, you don’t feel like you’re in some mythical version of white America from the 1950s. Southern California is even more cosmopolitan than the Bay Area. Second, Indian Americans are incredibly influential today, not just as corporate CEOs, but also through the growing power of the Indian caucus in Congress. That should give people a sense of comfort. The success of Indian-Americans is remarkable.”

The Dean of USC added that skilled migration has become politically sensitive everywhere. “The imagined fear is physical safety. Events like the LA riots or fires make the news, but they are limited to small areas.” International students now make up 21% of USC’s incoming undergraduates and 24% at the business school. Meanwhile,  Indian enrollments have doubled over five years.

Win for India, talent will come back

Geoffrey Garrett also added that the change might actually benefit India. “I understand why Indian students are so concerned. But in practical terms, two things matter. First, the job pathways into big firms likely won’t be affected much. Second, several of the major users of H-1B visas were Indian companies operating in the US, so this shift could be a win-win, as more talent might now return to India.

According to the guests, at the business school, they registered a record number of Indian students this year. “That’s true across USC, including undergraduate programs,” Garrett said. “We thought visa issues might reduce international students, but top schools like USC are still in demand. Students know the value of a strong US education. Smaller universities may feel the pinch more.”

He added that undergraduate programs are four years long, so uncertainties can be managed over time. “For those students, this new environment makes the decision much harder: Do I pursue this degree with so much uncertainty around my employment prospects afterwards? That’s a real concern, and we’ll need to think carefully about it. It’s also another reason to seriously consider offering graduate education outside the US, not just as a strategic move, but because it might become a practical necessity.”

According to Jared Grusd, day-to-day student life remains focused on learning and career growth, rather than fears over visa rules or safety.

Growing competition from Indian Universities

Garrett acknowledged that in recent months, uncertainties have led many students to consider newer private Indian universities. “You are absolutely right about the growing trend of students pursuing UG education abroad. We’ve seen the same shift at USC. This year, international students made up 21% of USC’s incoming undergraduate class overall. At the business school, that number was 24%. In fact, the number of Indian undergraduates at USC has doubled over the past five years, and the number of graduate students has increased as well.”

He added that India’s New Education Policy (NEP) has grabbed global attention, especially with the rise of high-quality private universities. “At the same time, foreign universities are now allowed to operate independently in India. That’s a big deal when thinking about offshore operations,” he said.

Garrett emphasised the need for universities to think beyond the US.  “We want to continue attracting a global student body, as much as possible. But we also need to create career opportunities outside the US. It can’t just be one-way traffic into American jobs. This marks a significant shift for US higher education, especially as reliance on international students and government research funding is being challenged. I don’t believe we will return to the old status quo.”