Indian students in US on deportation radar under new law, even one-day overstays hit
Students attending U.S. institutions without scholarships and paying full fees will be exempt from the tax.
- Jul 19, 2025,
- Updated Jul 19, 2025 7:21 AM IST
President Donald Trump’s newly signed immigration and spending law, dubbed the "One Big Beautiful Bill", has tightened the screws on Indian students in the U.S., with sweeping changes that could reshape education migration trends and everyday financial choices.
The legislation, passed earlier this month, injects nearly $170 billion into Immigration and Customs Enforcement (ICE), significantly expanding its reach. For Indian students in the U.S. on F-1 visas or post-graduation Optional Practical Training (OPT), this means heightened vulnerability. Even a short visa overstay or brief unemployment period during OPT could now trigger serious immigration consequences.
In tandem, the law introduces a new 1% remittance tax on overseas money transfers—impacting those on non-immigrant visas, including students—who send funds back home using traditional cash methods. While small in percentage, the tax is expected to hit students with tight budgets, especially those helping their families or paying off education loans. A $1,000 transfer to India, for instance, would now carry a $10 surcharge beginning January 1, 2026.
Students attending U.S. institutions without scholarships and paying full fees will be exempt from the tax. However, the vast majority of Indian students rely on some form of financial support or attend mid-tier universities, making them more susceptible to these cost increases.
Study abroad consultants say the tax is unlikely to fully deter Indian students, but it adds pressure to an already stressful environment. Many are expected to adapt by shifting to digital transfer platforms, adjusting budgets, or limiting the frequency of remittances. At the same time, students have become increasingly cautious, curating their online presence and closely monitoring their visa compliance, amid broader visa scrutiny and social media monitoring under the new administration.
Further compounding the challenge, the law cuts federal programs like Medicaid and SNAP, which previously offered some assistance to students at state colleges. This financial squeeze could prompt public institutions to pivot toward attracting more full-paying international students—who remain unaffected by the remittance tax—to make up for funding shortfalls.
While elite, research-driven universities may still appeal to Indian students aiming for Ivy League credentials, the evolving U.S. immigration climate is prompting many to reevaluate. Consultants report a growing shift among mid-tier aspirants toward countries like Canada and those in Europe, where the path for international students appears less fraught and more welcoming.
President Donald Trump’s newly signed immigration and spending law, dubbed the "One Big Beautiful Bill", has tightened the screws on Indian students in the U.S., with sweeping changes that could reshape education migration trends and everyday financial choices.
The legislation, passed earlier this month, injects nearly $170 billion into Immigration and Customs Enforcement (ICE), significantly expanding its reach. For Indian students in the U.S. on F-1 visas or post-graduation Optional Practical Training (OPT), this means heightened vulnerability. Even a short visa overstay or brief unemployment period during OPT could now trigger serious immigration consequences.
In tandem, the law introduces a new 1% remittance tax on overseas money transfers—impacting those on non-immigrant visas, including students—who send funds back home using traditional cash methods. While small in percentage, the tax is expected to hit students with tight budgets, especially those helping their families or paying off education loans. A $1,000 transfer to India, for instance, would now carry a $10 surcharge beginning January 1, 2026.
Students attending U.S. institutions without scholarships and paying full fees will be exempt from the tax. However, the vast majority of Indian students rely on some form of financial support or attend mid-tier universities, making them more susceptible to these cost increases.
Study abroad consultants say the tax is unlikely to fully deter Indian students, but it adds pressure to an already stressful environment. Many are expected to adapt by shifting to digital transfer platforms, adjusting budgets, or limiting the frequency of remittances. At the same time, students have become increasingly cautious, curating their online presence and closely monitoring their visa compliance, amid broader visa scrutiny and social media monitoring under the new administration.
Further compounding the challenge, the law cuts federal programs like Medicaid and SNAP, which previously offered some assistance to students at state colleges. This financial squeeze could prompt public institutions to pivot toward attracting more full-paying international students—who remain unaffected by the remittance tax—to make up for funding shortfalls.
While elite, research-driven universities may still appeal to Indian students aiming for Ivy League credentials, the evolving U.S. immigration climate is prompting many to reevaluate. Consultants report a growing shift among mid-tier aspirants toward countries like Canada and those in Europe, where the path for international students appears less fraught and more welcoming.