US dream takes a hit as Indian applications fall 15% amid visa, H-1B uncertainty

Indian student applications to US colleges have fallen 15% amid visa uncertainty and tighter immigration policies, while proposed H-1B fees add concerns. European universities are emerging as alternatives, offering affordability and greater policy certainty.Indian student applications to US colleges fall 15% amid tighter visa rules (AI generated image)The number of Indian students applying to US colleges has fallen sharply, reflecting growing concerns over tighter immigration policies, visa uncertainty and the rising cost of pursuing education and careers in the United States.A new report by Common App, a non-profit organisation representing more than 1,100 institutions, found that the number of Indian applicants fell by 15% in the 2025-26 academic year compared with the previous year. India, however, remains the largest source of international students for the US.INTERNATIONAL APPLICATIONS SEE STEEP DECLINEAccording to the Common App report, international applications for undergraduate admission in the 2026-27 academic year were down 10% through March 1, marking the steepest decline the organisation has recorded.The drop was particularly visible among applicants from Asia and Africa. International applicants from Asia declined by 11%, while those from Africa fell 17%. India recorded a 15% decline, while applications from Ghana dropped by a sharper 34%. In contrast, applicants from the Americas increased by 5% compared with 2024-25.The report also highlighted broader shifts in US college applications. Students from below-median-income ZIP codes grew by 8%, outpacing the 2% growth among applicants from above-median-income ZIP codes. Applications to public member institutions rose by 7%, compared with 5% growth at private institutions.US COLLEGES FACE FALLOUT The trend is also reflected in a separate report by NAFSA: Association of International Educators and JB International, which projects a further decline in international student enrolment for Fall 2026.The report attributes the downturn to several factors, including declining application volumes, persistent visa appointment bottlenecks and increasingly restrictive immigration policy changes.It estimates that the US economy could lose up to $3.4 billion in direct economic contributions from international students in Fall 2026, while as many as 40,000 US jobs could be at risk, roughly a 9% reduction from the Fall 2025 baseline.Graduate-level enrolment declines are expected to be a major driver of these losses, particularly at institutions with large international student populations.The report also cited data showing that international applications to US doctoral programmes for the upcoming fall declined by 21%, contributing to a 17% fall in international admissions and a 15% drop in overall doctoral programme admissions amid uncertainty over federal research funding.Meanwhile, Common App data cited in the report showed international submissions for the 2026-27 cycle falling 9%, with submissions from India down 14%. Nearly two-thirds of institutions surveyed by IIE also expect further declines in 2026-27, with some projecting graduate enrolment drops of up to 40%.PROPOSED H-1B FEE ADDS TO CONCERNSFor Indian students hoping to transition from US universities into the American workforce, proposed changes to the H-1B visa system could add another layer of uncertainty.The US Department of Homeland Security has begun the process of proposing new fees for the H-1B visa programme and the F-1 Optional Practical Training (OPT) programme, according to immigration law firm Fragomen.The Trump administration had earlier introduced a one-time $100,000 payment requirement for certain new H-1B petitions in September 2025. However, that measure is currently not enforceable.The latest DHS proposal would introduce a $103,265 fee for every cap-subject H-1B petition, including those eligible for the US master's degree exemption. The proposal is not yet final and remains open to public comments.If implemented, the changes could significantly increase the cost of hiring foreign workers, potentially adding to concerns among Indian students already weighing the uncertainty surrounding visas, work opportunities and immigration policies in the US.INDIAN STUDENTS TURN EUROPEWARDIndian students are increasingly looking beyond the US and choosing European universities. Countries such as Germany, France, the Netherlands, Italy and Spain are emerging as attractive alternatives, offering lower tuition fees, expanding English-language programmes and clearer pathways for post-study work.The India-EU mobility framework has further boosted interest by promising easier movement and improved recognition of Indian qualifications.However, Europe comes with its own challenges, including language barriers, housing shortages and intense job competition. Still, with affordability and greater policy certainty becoming key priorities, European universities are increasingly positioning themselves as a strong alternative to traditional destinations such as the US, UK and Canada.- EndsPublished By: Karan YadavPublished On: Aug 25, 2026 12:03 IST