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Time of India
6 hours ago
- Politics
- Time of India
Why are Edlow and Vaughan calling OPT illegal? Here's the real story
OPT faces mounting legal and political attacks, putting the future of 200,000 international graduates at risk. In the quietly panicked corridors of international education policy, a storm is gathering around the United States' Optional Practical Training (OPT) program—and for once, it's not hyperbole to say that the damage may already be done. The numbers are stark, the policy narrative even starker. According to the U.S. Immigration and Customs Enforcement's (ICE) SEVIS 2024 report, over 194,554 international students received work authorisation under OPT last year. Of these, a staggering 95,384 secured extensions under the STEM OPT provision. And standing at the centre of this tectonic shift are Indian students, who account for nearly 98,000 of those OPT authorisations during the 2023–24 cycle, as confirmed by the Indian Ministry of External Affairs. But now, the very scaffolding of this bridge—from academic promise to professional foothold—is under coordinated assault by voices both influential and ideological. Leading the charge are Jessica Vaughan, Director of Policy Studies at the Center for Immigration Studies (CIS), and Joseph Edlow, the newly confirmed Director of the U.S. Citizenship and Immigration Services (USCIS). Both have testified before Congress in 2025 that OPT is not only legally suspect but structurally dangerous. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cardiologists Beg: Take These 4 Ingredients Before Bed to Burn Fat The Healthy Way Learn More Undo by Taboola by Taboola The rhetoric may be wrapped in legalese, but the intent is clear: Dismantle the post-study work rights that have long made U.S. degrees a prized aspiration for international—and particularly Indian—students. What's at stake is more than immigration. It is the erasure of a pipeline that has quietly underwritten America's dominance in global tech and innovation. Edlow and Vaughan 's case against OPT: Congress didn't sign it, so let's burn it At the core of the campaign to dismantle the Optional Practical Training (OPT) program lies a foundational dispute—not merely about visas or foreign labour, but about who gets to define the boundaries of lawful work in postsecondary America. And in this ideological contest, Jessica Vaughan and Joseph Edlow have emerged as the architects of what they frame as a long-overdue correction. Their argument is deceptively simple: OPT is not law—it is regulation. Worse, they claim, it is unregulated regulation, sustained not by statute but by administrative inertia and legal loopholes. In her detailed testimony before the House Judiciary Subcommittee in June 2025, Vaughan—Director of Policy Studies at the Center for Immigration Studies (CIS)—delivered a withering critique of what she called 'the largest unregulated guest worker scheme in the United States.' Drawing from internal data sets provided by ICE and the Department of Homeland Security, Vaughan revealed that over 540,000 work authorisations were granted under OPT and CPT (Curricular Practical Training) in FY2023 alone. This, she argued, was not just administrative generosity—it was regulatory anarchy. In her words, OPT had "spawned an industry of diploma mills, fake schools, bogus training programs, and illegal employment." According to her testimony, the Student and Exchange Visitor Program (SEVP)—the body meant to oversee the legitimacy of these academic affiliations—was too chronically under-resourced to vet the scale of demand. The result, she concluded, was a parallel ecosystem of academic storefronts and training programmes designed not for learning, but for visa preservation and labour substitution. But perhaps her sharpest critique was constitutional in tone. OPT, she reminded the Committee, is not authorised by the US Congress. It was created as an extension of executive rulemaking, first formalised under the Bush administration and later expanded under Obama. 'There has never been a vote in Congress,' Vaughan noted, 'to allow hundreds of thousands of foreign graduates to work on US soil under this program. ' Edlow, a former Trump-era official brought back to restore 'legal fidelity' to immigration enforcement, seconded the legalistic rebuke. In multiple briefings before the Senate and in internal USCIS memoranda from April–June 2025, Edlow contended that the Immigration and Nationality Act (INA) makes no provision for post-completion work for F-1 visa holders. "The INA is unambiguous," he said. "Student visas are for study—not for work after graduation. " He took particular aim at the 2023 D.C. Circuit Court ruling, which upheld the legality of OPT and its STEM extension. The decision, Edlow claimed, rested on an 'erroneous reading of statutory intent'—one that unjustifiably enlarged the executive branch's power to define immigration eligibility criteria without congressional consent. In his congressional appearances and in internal DHS documents, Edlow has further proposed reorienting USCIS enforcement priorities. Specifically, he has called for an expanded role for the Fraud Detection and National Security (FDNS) directorate in vetting OPT applicants and employers—a move that signals a coming compliance-heavy era, where student employment records could be re-audited, revoked, or flagged for deportation if found wanting. Both Vaughan and Edlow converge on the same policy prescription, stated either in soft legalism or hard numbers: The OPT program must either be terminated outright or restricted so severely that it becomes operationally nonviable for most international graduates. In other words, OPT must be stripped of its current utility to ensure it cannot continue under the guise of administrative legitimacy. What really lies beneath Edlow and Vaughan's constitutional and legal arguments? Behind Edlow and Vaughan's polished legal rhetoric lies a deeper mission—one that has less to do with statutes and more to do with reshaping America's relationship with global talent. Woven beneath the testimony is a broader, more ideological belief that international student mobility has been hijacked by corporate interests, and that foreign graduates are now indistinguishable from guest workers, hired to circumvent wage floors, sidestep payroll taxes, and bypass labour market tests that would otherwise favour American graduates. To this end, Vaughan and Edlow's critique is not merely of OPT as policy, but of OPT as economic architecture—an invisible scaffold that supports tech giants, universities, and global talent mobility. For them, removing that scaffold is not disruption. It is restoration. Come, pay, tuition and leave What Edlow and Vaughan propose is more than a policy fix—it is a structural decoupling of education from employability, one that threatens to return the F-1 visa to a narrow, transactional instrument: come, pay tuition, and leave. It is this return to pre-globalisation thinking that most alarms educators and economists alike. And it is this version of 'legal clarity' that could leave hundreds of thousands of students—including the 98,000 Indian graduates currently working under OPT—on the edge of a bureaucratic cliff, with no safety net beyond the 90-day unemployment cap. TOI Education is on WhatsApp now. Follow us here . Ready to navigate global policies? Secure your overseas future. Get expert guidance now!
Time of India
10-07-2025
- Business
- Time of India
Education loan book growth to halve amid US visa curbs
Mumbai: Crisil has forecast that growth in the education loan book of non-banking finance companies (NBFCs) will slow to half of last year's pace due to tightening immigration policies in the United States that are discouraging Indian students from pursuing higher education abroad. 'Policy uncertainties in the US, combined with measures including reduced visa appointments and the proposed elimination of Optional Practical Training norms have culled newer loan originations. This has led to around 30% decline in total disbursements to that geography last fiscal,' said Malvika Bhotika, Director at Crisil Ratings. According to the ratings agency, education loans had been the fastest-growing asset class for NBFCs in recent years, with assets under management (AUM) rising by over 50% annually. However, Crisil expects this growth to moderate to around 25% in the current fiscal, down from 48% last year and 77% the year before. The AUM is projected to reach ₹80,000 crore by March 2026, up from ₹64,000 crore in FY25. The slowdown has been attributed to a sharp decline in loan disbursements to the US — traditionally the largest destination for Indian students — as the country reduces visa appointments and considers scrapping the Optional Practical Training (OPT) programme for international students. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5-year-old girl needs her second heart surgery! Donate For Health Donate Now Undo Disbursements to Canada, the second-largest market, also declined due to stricter student visa rules, including higher financial requirements and a cap on permits. As a result, overall education loan disbursements rose just 8% in FY25, a sharp fall from the 50% growth seen in FY24. To counter the US-led slowdown, NBFCs are now diversifying into alternative geographies such as the UK, Germany, Ireland and other smaller nations. Disbursements to these destinations have doubled, with their combined share in total education loan disbursals rising from 25% in FY24 to nearly 50% in FY25. However, this diversification is unlikely to fully offset the drop in US-bound disbursals. The US still accounted for 50% of total education loan portfolios as of March 2025, down from 53% a year earlier, and this share is expected to decline further in the coming years. NBFCs are also exploring new product adjacencies including domestic student loans, school funding, and loans for skill development and coaching. While these segments involve lower ticket sizes and are unlikely to materially impact AUM, they may offer portfolio stability during global disruptions. Asset quality in the sector remains strong for now, with gross non-performing assets (NPAs) at 0.1% as of March 31, 2025. Even after adjusting for the principal moratorium — which covers around 85% of the loan book — gross NPAs stood at ~0.7%. 'Despite the global developments, NBFCs have maintained healthy asset quality so far,' said Sonica Gupta, Associate Director at Crisil Ratings. 'However, high growth in the past few years and estimated ~15% of the portfolio coming out of contractual moratorium this fiscal pose some asset quality risks.' The report emphasizes that NBFCs' ability to scale newer segments while maintaining quality, and to adapt to changing student preferences and international policies, will be critical for sustaining growth in the education loan segment. The analysis is based on NBFCs rated by Crisil, which represent over 90% of the industry's total AUM. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
09-07-2025
- Business
- Time of India
How policy changes in USA may impact student mobility, budgeting decisions, and the overall study-abroad experience
A record number of Indian students, 331,602, enrolled in U.S. institutions in 2023-24, marking a 23% increase. Policy shifts and a new remittance tax in the U.S. are prompting students to explore alternatives like Europe, where Germany and France are gaining popularity. India is also emerging as an education hub, with international universities establishing campuses to retain students. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) As per the Open Doors Report 2024, a record-breaking 331,602 Indian students enrolled in U.S. institutions during the 2023–24 academic year, a strong 23% jump from the previous year. Indian students now represent 29.4% of the international student body in the U.S., the highest share ever. While this growth is encouraging, evolving visa policies and added scrutiny around F-1 visa applications have introduced new steps in the journey for some changes and proposals in U.S. federal policies have added new considerations for international students , including those from India, as they plan their academic futures. For instance, the eligibility period for renewing a visa interview waiver has been reduced from 48 months to 12 months. There have also been discussions around potential changes to the Opt ional Practical Training (OPT) program. Currently, F-1 visa holders can work in the U.S. for up to a year post-graduation, with students in STEM fields receiving an additional two-year extension. This pathway has long been a vital bridge between education and career, helping the U.S. retain skilled global talent. While some of these proposed changes may cause uncertainty, they also highlight the importance of staying informed and making well-researched these shifts, the U.S. continues to be a leading destination for Indian students, thanks to its top-tier universities, strong research ecosystem, and global career prospects. For students and families, the evolving policy environment simply means weighing long-term value alongside short-term logistics more carefully than remittance tax proposal in the US has gone through quite a journey. It started with a 5% tax in the early drafts of the One Big Beautiful Bill Act, was later brought down to 3.5% in the House version, and now the Senate has settled on 1%.This is the first time such a tax is being introduced, and while 1% is still a new cost, it's a big relief compared to what was originally Indian families depend on money sent from the US to cover things like education, medical bills, and household expenses. A 5% tax would've made that support more difficult. Bringing it down to 1% feels more fair, it shows that there's an understanding of how important these remittances are. We've been following this closely, and the new rate feels more reasonable. It shows that policymakers are open to feedback and willing to make changes when needed. With Indian students alone contributing over $17 billion to the US economy every year, decisions like this go a long way in keeping trust strong and relationships positiveOn the other hand, the U.S. government stands to benefit by collecting extra revenue, mostly from non-citizens, without necessarily providing any added services in for most students, this isn't likely to be a deal-breaker. Yes, it's an added cost, but it's also part of a much bigger opportunity. Studying in the U.S. gives access to world-class education, global exposure, and career opportunities that can open many doors. For many, it's a small trade-off for the chance to chase bigger goals and be part of the American US presenting uncertainties, it is obvious for the Indian students to explore alternatives beyond traditional destinations. Europe has emerged as one of the top destinations for international students, driven by its rich cultural heritage, diverse academic offerings, and the continued growth of world-class universities. As per the University Living European report, Germany, France, Italy, Spain, Portugal, Austria, and Malta are fast emerging as welcoming destinations for international data shows that Germany has seen 35 per cent surge in university applications from Indian students, reflecting a growing interest in the country's education France hosted 7,344 Indian students in 2023-24, with numbers expected to grow by 200% by 2030. In 2025, Italy is expected to host 9,186 Indian students, with projections indicating a significant 540% growth by 2030 according to University Living European Student Landscape report, touching an estimated 25,067 Portugal and Malta come as new names that are emerging as international student destinations. For Austria, the number of Indian students was a little over 744 in 2023, but it is estimated to grow at 114% to 1,287 by 2030. Portugal, the number of Indian students was a little over 300 in 2024, but the number of India's student is set to grow steadily, with a projected increase of 71% by 2030 to 597. Malta the number of Indian students to grow by over 350% by 2030, from 279 in 2021 to over 1,278 in global policy shifts in traditional study destinations, India is making significant strides to emerge as a next-gen education powerhouse. The UGC has officially approved five international universities to establish full-fledged campuses in India, including the Illinois Institute of Technology ( USA ), University of Liverpool (UK), Victoria University (Australia), Western Sydney University (Australia), and Istituto Europeo di Design (Italy).These institutions, opening between 2026-27, will offer world-class education right here in top of that, Education Minister Dharmendra Pradhan recently announced that 15 foreign universities, particularly in STEM fields, will open branches in India in the current academic initiative aligns with NEP 2020's vision of internationalising education and curbing the outflow of Indian students and dollars for foreign global campuses mean Indian students can access internationally recognised curricula, research facilities, and industry linkages without leaving home.(The author is the Founder and CEO of University Living)
India Gazette
09-07-2025
- Business
- India Gazette
For NBFCs, education loan AUM growth to halve amid US headwinds: Crisil
New Delhi [India], July 9 (ANI): For non-banking finance companies (NBFCs), education loans have been the fastest-growing asset class, clocking over 50 per cent growth in the assets under management (AUM) over the past few years. According to Crisil Ratings, that pace is set to halve this fiscal as disbursements for pursuing educational courses in the US decelerate following a raft of policy changes there. To mitigate, NBFCs are diversifying into new geographies and product adjacencies. While non-performing assets (NPAs) have remained stable so far, asset quality will be monitorable given the global uncertainties and a large proportion of AUM (85 per cent) remaining under contractual principal moratorium. The education loan AUM of NBFCs grew rapidly by 48 per cent to Rs 64,000 crore last fiscal. That followed an even faster 77 per cent growth in fiscal 2024, according to Crisil Ratings. This fiscal, growth is seen moderating to 25 per cent with AUM reaching Rs 80,000 crore, the rating agency added. Malvika Bhotika, Director, Crisil Ratings, 'Policy uncertainties in the US, combined with measures including reduced visa appointments and the proposed elimination of Optional Practical Training norms, have culled newer loan originations. This has led to a 30 per cent decline in total disbursements to that geography last fiscal.' 'Disbursements linked to even Canada, the second-largest market, fell as student visa rules turned stricter, including increased financial requirements via proof of available funds, and cap on permits,' Bhotika added. Consequently, overall education loan disbursements were up only 8 per cent in fiscal 2025, compared with 50 per cent in fiscal 2024. To offset these business headwinds, NBFCs have sharpened focus on other geographies, asserted Crisil Ratings. Disbursements linked to courses in the UK, Germany, Ireland and smaller countries have doubled in the past fiscal as students opted for alternative destinations, it added. The share of such geographies in total disbursements rose to almost 50 per cent in fiscal 2025 from 25 per cent a year ago. But, according to Crisil Ratings, this will not fully offset the decline in US-linked disbursements. Notably, the share of the US in the overall education loan portfolio has already come down to 50 per cent as on March 31, 2025, from a peak of 53 per cent as seen on March 31, 2024. It is expected to go down further over the next few years as lenders gravitate towards other geographies. Faced with the crisis, NBFCs are also looking at domestic student loans and adjacencies such as school funding, loans for skill development, certification and coaching, the rating agency asserted. 'Given the lower ticket sizes of such loans, their share in the overall portfolio is unlikely to be material, but they may lend some stability in times of global uncertainties,' it supplemented. (ANI)
New Indian Express
09-07-2025
- Business
- New Indian Express
NBFCs' education loan AUM growth to halve amid US headwinds
CHENNAI: For non-banking finance companies (NBFCs), education loans have emerged as the fastest-growing asset class, with assets under management (AUM) expanding by over 50% in recent years. However, that growth rate is expected to halve this fiscal, as disbursements for educational courses in the US slow following a raft of policy changes, according to a latest analysis by rating agency Crisil Ratings. The US has introduced sweeping visa and policy reforms, including the suspension and subsequent resumption of visa processing under tighter social-media scrutiny—especially targeting certain countries and academic fields. The reforms also propose fixed-term student visas, enforce visa revocations linked to political activism, and have triggered legal challenges and institutional pushback. These developments have heightened enrollment anxiety and financial risks for universities. For students from India and other countries, this has translated into longer waiting periods, additional documentation requirements, potential term limits, and greater uncertainty—particularly for those involved in activism or pursuing sensitive academic disciplines. To mitigate the potential decline in business, NBFCs are diversifying into new geographies and adjacent product segments. While non-performing assets (NPAs) in the NBFC sector have remained stable so far, asset quality remains a monitorable factor given global uncertainties and the significant portion of AUM still under contractual principal moratorium. In fiscal 2025, the education loan AUM of NBFCs grew a robust 48% to ₹64,000 crore, following an even sharper 77% growth in fiscal 2024. However, growth is expected to moderate to around 25% this fiscal, with AUM reaching approximately ₹80,000 crore, according to CRISIL Ratings. 'Policy uncertainties in the US, combined with measures such as reduced visa appointments and the proposed elimination of Optional Practical Training norms, have curbed new loan originations. This led to a ~30% decline in total disbursements to the US last fiscal,' says Malvika Bhotika, Director, Crisil Ratings.
