In a major clarification, the U.S. Citizenship and Immigration Services (USCIS) has confirmed that students already residing in the United States under F-1 visas will not be required to pay the $100,000 H-1B visa fee when they change their visa status. The exemption applies to individuals seeking status changes, extensions, or amendments, such as switching employers.
The “Loophole” Debate
The clarification has sparked significant discussion among immigration attorneys and Indian tech professionals.
Immigration lawyer Charles Kuck called it a “massive loophole”, noting that anyone entering on a non-immigrant visa—such as F-1 (students) or B-1/B-2 (visitors)—is not required to pay the hefty fee when changing status within the U.S.
Indian-origin techie Deedy Das echoed the sentiment, calling it “HUGE immigration news” and suggesting that the rule primarily targets outsourcing-heavy WITCH IT companies (Wipro, Infosys, TCS, Cognizant, HCL), while sparing genuine international students who studied in the U.S.
Why It’s Not Actually a Loophole
Immigration experts argue that this isn’t a loophole but an intentional policy design. The $100,000 fee aims to discourage companies that rely heavily on importing foreign talent while promoting U.S.-educated graduates. This distinction encourages skilled professionals who have studied and trained in the U.S. to remain and work legally, strengthening the domestic talent pipeline.
Analysts say this could reverse the ongoing trend of international students preferring the UK, Germany, or Ireland over the U.S. due to high costs and visa uncertainties.
OPT to H-1B: What Changes
Under the Optional Practical Training (OPT) program, F-1 visa holders can work for up to a year after graduation—three years for STEM students. When these graduates shift to H-1B status, their employers will pay the standard visa processing fee, not the $100,000 surcharge, making the transition smoother and more affordable.
