Indian students face fading American dream

Students in USA are facing a tough situation shaped by rising inflation, changing visa rules and uncertainty around employment

Sweeping policy changes, from visa crackdowns to rising education costs, that began when Donald Trump began his second term as President of the United States, have put international students under pressure. Among the most affected are Indian students, many of whom have gone there with heavy loans and high hopes, only to face inflation, job scarcity and growing uncertainty around their future.

Since Donald Trump assumed office for his second term as President of the United States on January 20, the headlines have been filled with news of his administration’s bold policy shifts, ranging from new tariffs and cutting funding to established universities, to tightening visa regulations. These changes have affected people from all over the world, across various age groups. One group feeling the weight of these shifts are Indian students studying abroad.

Many of these students take out large loans to study at top American universities, only to find that life after arrival does not match the dream they were sold. They are now facing a tough situation shaped by rising inflation, changing visa rules, and growing uncertainty around employment.

“Things are a little uncertain here, I took a hefty loan to pursue higher education in the US, and my college is one of the most reputable ones. Therefore, I was hoping to get good offers and repay the loan, but things have become a little uncertain. I have not been able to get an internship either,” Pratham Sharma, a student studying in New York, the United States, tells Media India Group.

A recent Reddit post by a user claiming to hold a Master of Science (MSc) degree from a US university sparked widespread debate online. The user shared the harsh realities that many international students are dealing with in the United States and strongly advised others to avoid coming to the US in the near future.

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“The coaching mafia is running scams, talking about the US as if it is the land of milk and honey. Do not come to the US for the next three to four years,” the post read. “Students are struggling to get jobs. I have known many Indian students who have fallen into depression. US universities will take your money, and you will be left with huge debt and mental health issues.”

Inflation and cost of living

According to statistics from the US Bureau of Labour Statistics, inflation in the United States remains stubbornly high in 2025, with the Consumer Price Index (CPI) up 3.5 pc year-on-year as of March, driven by energy costs and supply chain disruptions.

For international students, who already pay premium tuition rates, this means everyday expenses like rent, groceries, transportation, and healthcare have become significantly more expensive.

“It is too early to comment as inflation has been a problem here, long before I landed in the country, however, I did notice some changes in the prices, like eggs. I hope the situation does not worsen,” adds Sharma.

Many Indian students take out large education loans to study in the United States, expecting a return on investment through high-paying jobs post-graduation. But with living costs escalating and currency exchange rates unfavourable, managing finances can be difficult.

Job scarcity and visa changes

While Indian students have historically found success through Optional Practical Training (OPT) or H-1B visa pathways, 2025 has seen a noticeable downturn. According to data from the National Foundation for American Policy (NFAP), the approval rate for H-1B visas has dropped below 70 pc, a sharp decline from earlier years. Meanwhile, tech layoffs and hiring freezes have made it harder for recent graduates to find work.

“The current United States job market has certainly made things more competitive. As an international student, I have noticed that many companies are either hesitant or simply not offering sponsorship, which automatically narrows down the opportunities,” says Sharma.

The Trump administration has also reinstated stricter immigration policies reminiscent of his first term. More than 1,300 student visas were revoked over the past year, often without detailed explanation, according to The Guardian, a leading British daily.

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To add to the troubles for foreign students already in the US, in April 2025, the US State Department introduced new vetting measures for students who have visited specific countries or regions, including Gaza, which has already led to over 300 visa rejections, many of them Indian.

These developments have created a climate of fear and unpredictability. According to Professor Chris R Glass of Boston College, who analysed data from the Student and Exchange Visitor Information System (SEVIS), the total number of international students in the United States fell by 11.33 pc from March 2024 to March 2025. The drop was even steeper among Indian students, down nearly 28 pc over the same period.

“Ever since I have arrived, navigating CPT and OPT has been more of a technical process, however, with a new update every day, staying aware of deadlines, paperwork and school approvals has become overwhelming. It has become quite a challenge alongside academic and career pressures,” adds Sharma.