U.S. B-Schools Could Face Major Disruption If Indian Student Visas Are Curtailed

U.S. B-schools rely on Indian students more than any other international group

For U.S. business schools, the risk is growing. A proposed overhaul of the H‑1B visa process by the Trump administration could dramatically disrupt the flow of talent into MBA programs and the U.S. job market — a dual pipeline that elite programs have come to depend on.

The threat is twofold: a new wage-based selection system that would favor higher-paid job offers, and a proposed $100,000 fee for each new H‑1B visa application. Both changes, if implemented, would shake the foundations of how international MBA students — particularly those from India — approach the American business education system. Indian workers currently dominate the H‑1B program, accounting for 73% of new visas in 2023 (see chart below). That dominance is mirrored on B-school campuses: In the 2024 intake (MBA Class of 2026), Indian nationals made up a quarter of the class or more, and by far a plurality of all international students, at several top-50 schools.

These students are not just filling seats. They are often key contributors to classroom discussions, cultural diversity, and the financial sustainability of programs that charge upward of $100,000 annually in tuition and living costs. They also tend to pursue STEM‑designated MBA tracks, which offer a longer Optional Practical Training (OPT) window — often seen as a crucial bridge to an H‑1B visa and long-term employment in the United States.

A FRAGILE DEPENDENCY ON THE H‑1B SYSTEM

A Poets&Quants analysis published in February 2025 showed that in many schools’ 2024 intake (MBA Class of 2026), Indian students far outnumbered the next closest nationality — which in most cases were students from China. At NYU Stern, for example, 20.6% of the MBA class was Indian, compared to 5.4% Chinese; at Duke Fuqua, the figures were 18.4% vs. 3.7%.

At Carnegie Mellon Tepper, the share of Indian students jumped to 58% of all internationals, up significantly from previous years, dwarfing the Chinese share. Several other schools also reported large Indian populations — Berkeley Haas surged to 38.8% from 13.1%, Georgia Tech Scheller to 59% from 44%, and Texas‑Dallas Jindal to 86% from 62%. Across 46 of the top 50 U.S. B‑schools, the average share of Indian students was 33.9% of all internationals, whereas that of Chinese was 17.2%.

Until now, the H‑1B system operated on a lottery model, where eligible applicants were selected at random. But in a sweeping policy shift announced this month, the Department of Homeland Security proposed replacing the lottery with a wage-weighted selection process. Under the new rules, higher-paying job offers would have better odds of selection. Employers offering wages in the highest federal wage tier would receive four entries per applicant, while those in the lowest tier would receive only one.

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At the same time, the administration proposed a one-time, nonrefundable $100,000 fee for each new H‑1B petition — a staggering increase from the current cost of $2,000 to $5,000 per application. Though the fee would not apply to renewals or internal transfers, it would significantly raise the cost of sponsoring new international hires, especially for small and mid-sized firms that recruit MBAs into junior or rotational roles.

RECALCULATING THE ROI OF A U.S. MBA

The proposed changes — wage weighting and the six-figure fee — have triggered alarm across the business school ecosystem. For employers, the reforms add financial and structural friction to hiring international MBA talent. For students, they inject deep uncertainty into the already precarious path from classroom to work visa. And for schools, they threaten to undermine everything from global recruitment to career outcomes and rankings.

Some business schools are sounding the alarm quietly, lobbying policymakers behind the scenes. Others are reevaluating their employer engagement strategies and advising international students to begin planning for alternate geographies — including Canada, Europe, or Singapore — if their job offers fall below the new wage priority thresholds. A few deans have even floated the idea of building new global campuses or remote hiring pipelines, which could bypass the U.S. work authorization bottleneck entirely.

The ripple effects are already visible. Immigration policy experts warn that many employers will likely limit H‑1B sponsorship to only the most specialized or highly paid roles — mostly in tech, data science, or finance. Traditional general management, operations, and strategy roles may no longer justify the expense or hassle, narrowing the field of opportunities for international MBAs. Schools that pride themselves on broad employer diversity may find their placement data starting to cluster around a smaller, wealthier group of firms.

A TWO-TIERED SYSTEM COULD EMERGE

In this new reality, elite B-schools with large endowments and powerful alumni networks may be able to shield students from the worst effects. They can broker custom solutions, subsidize visa costs, or lean on top-tier employers to maintain pipelines. But mid-tier programs — especially those that rely heavily on full-pay international students from India — could face a double hit: declining applications and declining job placement rates.

The impact could also stratify the MBA experience itself. Students admitted with the hope of working in the U.S. may find their odds more closely tied to their pre-MBA experience, industry background, or salary potential than ever before. For many, the American dream once justified a $200,000 investment; but does it justify $300,000 or more?

Compounding this is the psychological effect of policy volatility. Indian applicants in particular are known to be ROI-driven, weighing work authorization outcomes heavily in their decision-making. If the post-MBA path is seen as more costly, unpredictable, or politically unstable, the U.S. may lose its appeal as a top business education destination — not just to individual students, but to entire cohorts.

DON’T MISS THE $100K VISA FEE THAT COULD REDEFINE BUSINESS EDUCATION and WAGE OVER LOTTERY: TRUMP ADMINISTRATION PROPOSES SWEEPING OVERHAUL OF H-1B VISA SELECTION

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