New Delhi: The United States remains the preferred overseas study destination for Indian students, but new visa rules are set to change how many of them plan that journey. The US Department of Homeland Security (DHS) on July 17, 2026 published a final rule, eliminating the decades-old “Duration of Status” (D/S) system for F-1 students, J-1 exchange visitors and I visa holders. The rule replaces D/S with a fixed authorised stay of up to four years and will take effect on September 15, 2026.
Under the D/S framework, international students could generally remain in the US as long as they maintained a full course of study and a valid SEVIS record, without a fixed expiry date on their I-94. That framework has now been replaced. Students whose programmes extend beyond four years, including most PhDs and some research-intensive degrees, will need to file a formal Extension of Stay (Form I-539) with the US Citizenship and Immigration Services (USCIS), submit biometrics and demonstrate continued eligibility during the course of their studies.
The final rule also tightens academic flexibility for graduate-level F-1 students. In most cases, they will no longer be able to transfer institutions or change their field of study while remaining in the US. Students also cannot pursue a second degree at the same or a lower academic level. Any further study must represent upward academic progression. The post-completion grace period, which allows graduates time to leave the country, begin Optional Practical Training (OPT) or change visa status, has also been reduced from 60 days to 30 days.
The changes assume particular significance for India, which recently overtook China as the largest source of international students in the US. According to the Open Doors 2025 report, a record 363,019 Indian students were enrolled in American institutions during the 2024-25 academic year, a 10% increase over the previous year.
Indian students also contributed an estimated US$12.48 billion to the US economy through tuition fees and living expenses, underlining their growing importance to American higher education.
Who stands to be affected?
The impact is unlikely to be uniform across programmes. For Suneet Singh Kochar, CEO and Co-Founder of Fateh Education, master’s students are expected to face limited disruption because most programmes conclude within two years, even after accounting for Optional Practical Training. Undergraduate and doctoral students, however, are likely to be more affected as bachelor’s degrees typically run for four years while PhD programmes often extend well beyond that.
“More than the policy itself, it is the additional uncertainty around the US that could influence student sentiment. Students and parents are increasingly looking for clarity before making such a significant investment,” Kochar said.
Aman Singh, Co-Founder of GradRight, believes the bigger challenge lies in the additional compliance requirements students will now have to navigate. PhD candidates would need to apply for an extension of stay during their programme instead of continuing under the earlier D/S framework. Students would also have to manage separate applications for extension of stay and work authorisation, increasing the administrative burden throughout their academic journey.
Saurabh Arora, Founder and CEO of University Living, said the shift to a fixed period of stay introduces a new layer of planning for students pursuing research and other long-duration programmes.
“Students may need to account for visa renewals or extensions during their academic journey, adding to both administrative and financial planning considerations,” he said, noting that research degrees lasting five to seven years would face the greatest impact.
Will applications fall?
None of the three experts expects an immediate decline in Indian applications to US universities. Kochar believes demand for the US will remain resilient. “A dramatic fall in applications is unlikely in the immediate term. Historically, the US audience has been very sticky. Students who are serious about studying in the US tend to postpone a decision rather than change destinations altogether,” he said, adding that he expects greater caution among applicants rather than a sharp decline in demand.
The latest Spring 2026 Snapshot by the Institute of International Education (IIE), conducted before the rule was finalised, also points to a slowdown. The survey found that 59% of participating US institutions reported a decline in international applications for 2026-27, while 61% reported a fall in applications from India. Nearly two-thirds expected overall international enrolment to decline in the coming academic year, with postgraduate programmes likely to be affected the most.
Singh said GradRight’s internal data also reflects weaker application trends compared with the previous cycle. However, he believes the finalisation of the rule gives students certainty about the regulatory framework. Those primarily seeking the academic value of a US education are still likely to apply, although shorter programmes that fit within the four-year period could become more attractive.
Diversifying, not abandoning, the US
The experts describe a strategy of diversification rather than a shift away from the United States. According to Arora, Indian students are increasingly weighing visa stability, post-study work opportunities and long-term career prospects alongside university rankings. Any policy that creates additional uncertainty is likely to encourage students to submit applications across multiple destinations instead of relying on a single country. He identified the UK and Australia for their post-study work pathways, and Germany and Ireland for their industry linkages and comparatively affordable education.
GradRight’s internal data points in the same direction. The organisation has recorded a 23% rise in interest for Germany, 15% for Australia and 10% for the UK between 2024 and 2025. Singapore, Hong Kong and the Netherlands have also witnessed significant growth in student interest.
Kochar, however, cautioned against reading the trend as a shift away from the US. Germany’s gains, he noted, have come largely at the expense of Canada and, to some extent, the UK. The US, he believes, will continue to be the preferred destination for students pursuing STEM, research and innovation, even as more applicants choose to spread their applications across multiple countries.
Planning replaces uncertainty
With the rule now finalised, counsellors say conversations with students and parents have changed. The focus is no longer on whether the rule will be implemented, but on how to plan around it.
Students are seeking clarity on visa extensions, post-study work eligibility, additional compliance requirements and programme flexibility. Counsellors also report growing interest in application strategies that reduce risk by including multiple destinations.
The US continues to offer unmatched strengths in research, innovation and higher education. Those fundamentals remain unchanged. What has changed is how Indian families evaluate overseas education. Academic reputation and university rankings remain important, but predictability, visa stability and long-term career prospects are now equally central to where students choose to apply.
