Last visit was: 18 Nov 2025, 16:56 It is currently 18 Nov 2025, 16:56
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 18 Nov 2025
Posts: 5,108
Own Kudos:
32,883
 [35]
Given Kudos: 700
GMAT Date: 08-19-2020
Expert
Expert reply
Posts: 5,108
Kudos: 32,883
 [35]
H-1B Visa changes – A Potential Boon for MBA Applicants 01 Feb 2017, 21:23
14
Kudos
Add Kudos
21
Bookmarks
Bookmark this Post
H-1B proposed Changes – Could be a Boon for MBA Applicants



Over the last few days, a number of you have written to me about the proposed changes to the H-1B Visa reform and its impact on your ability to secure a job post your MBA in USA. Hence, we did some research, the findings of which are presented below. You may also download the PDF here

Summary of findings

Since this is a pretty long article, I have added a short summary here. In essence, the proposed changes (if implemented) can be extremely beneficial for most MBA candidates because of the following reasons:


    1. Proposed changes may lead to higher chances of securing H-1B Visa: The H-1B visa program is severely abused and hence oversubscribed. Even with a sponsor, an MBA graduate currently has a 33% chance of securing the H1B visa. The proposal in the senate intend to address the abuse and in turn drastically increase the probability of securing a Visa. (Most Post MBA jobs offer $100K+ salaries)
    2. Minimum salary is not a must: The $130K number proposed by Zoe Lofgren is only for exempt filing process, that too for software engineers. It is completely possible to secure an H-1B visa while drawing a much lower salary by following the non-exempt process.
    3. Faster Green Card processing: A part of Zoe Lofgren’s proposal requires that employers file for immigration paperwork for H-1B Visa holders within 3 years. Currently very few employers do the same.
    4. Probably higher intake by B- Schools: Quota for H-1B is one of the things holding back B-schools from admitting deserving qualified applicants. As the chances of securing H-1B visa improve, schools may admit more international applicants.

2.BACKGROUND – WHAT IS H-1B VISA?

Why is it important to understand the purpose of H-1B Visa - because it lays the foundation of the abuse of this Visa instrument as described later on in this document.
H-1B provides an instrument to US employers that allows them to hire foreign workers to bridge qualified and skilled labor gap in certain business areas. Essentially if there is a job for which suitable or sufficient local talent is not available, an employer may bring in a foreign worker to fill that gap. Technically, the two only conditions required are that skill gap be demonstrated and the foreign worker be paid fair wages.

Note, H-1B Visa is not just for IT/Tech professionals. Any kind of skill shortage can be fulfilled using this instrument. In 2015, the H-1B visas were awarded to functions in 18 occupations including social sciences, arts, law, etc. If fact, the first lady Melania Trump came to USA on an H-1B Visa to work as a model.

2.1 HOW MANY H-1B VISAS ARE GRANTED EVERY YEAR?


There are 3 categories in which H-1B Visas are granted each year. Please see the table below for the same:



Because of these unlimited exemptions and roll-overs, the number of H-1B visas issued each year is significantly more than the 65,000 cap, with 117,828 having been issued in FY2010, 129,552 in FY2011, and 135,991 in FY2012.[8][9]

However, MBAs are primarily concerned with the 65,000 + 20,000 = 85,000 quota. From now on, we will talk just about this quota.

2.2 HOW IS H-1B VISA GRANTED?



There are two methods for granting H-1B Visa.

2.2.1 Nonexempt filing



This is the “original filing” method for filing an application for H1B Visa. Under this process, you need to demonstrate that there is a shortage of a certain kind of skilled worker and that the H1B hire will not directly replace a current position (within 120 days) in the parent company or any other company that the parent company has a relationship with. The technical terms associated with this process are non-displacement, recruitment, and hiring and are explained in Appendix 1.



Employers following this route do not have minimum salary requirements i.e. they can pay any salary that is deemed reasonable for this position.

2.2.2 Exempt filing



In 1998, a change was made that led to “Exempt filing” process. Under this process, the employer filing for H-1B visa did not have to worry about non-displacement, recruitment, and hiring as long as the H-1B worker
• Receives $60,000 annual wages; or
• Has attained a Master’s or higher degree (or its equivalent) in a specialty related to the intended H-1B employment.

Note, this H-1B worker was deemed as Exempt H-1B Worker.
Hereis the official statement:

Quote:
Essentially if you pay someone $60K or higher, or hire someone who has a Master’s degree, you can displace American workers as long as that American worker is not employed with the employer that is filing for H-1B. (Note this point as you read the Disney example later on)
Show more

3.0 HOW HAS THE H-1B VISA BEEN ABUSED



Quote:
The irony is that the very provision that US congress put in the Exempt filing process ($60K minimum wage) to prevent displacement of American workers helped H-1B employers displace existing American workers by low-cost H-1B employees
Show more

The Exempt filing process gave employers an amazing tool to displace American workers using H-1B Visa. This is because of a major flaw with the 1998 bill. While the $60K wage requirement in the 1998 bill was consistent with the IT salaries then, this bill did not index wage requirements to keep pace with wage growth or even inflation. As a result, H1B employers got a legal method to displace higher earning American workers with H-1B Visa holders.

Hence, as wages in IT sector grew, outsourcing companies found a means to import engineers from India not to augment a skill gap but to replace already existing workforce, especially with the wage inflation in IT sector.

Non-Exempt process goes out of fashion


With passage of time the non-exempt filing process went out of fashion with IT employers because:
1. It required more paperwork. You had to prove that local talent was not available.
2. You had to pay the H-1B visa holder more (remember it required that employers pay competitive salaries, something that most H-1B employers don’t do. Read the section of abuse for more data on the same).
Essentially, very few people use the Non-Exempt H-1B process now.

3.1 WHAT IS THE EVIDENCE THAT H-1B VISA IS ABUSED?



This is a very important question and there is a lot of data available that proves that H-1B visa has been severely misused/abused by a large number of companies. There are two ways to prove the same:
1. Anecdotal Evidence
2. Statistical Evidence

3.1.1 Anecdotal Evidence

There are a few cases in blogosphere where entire departments in companies have been replaced by outsourced workers. In January of 2015, nearly 250 Disney IT workers were laid off, and were replaced by workers from HCL and Cognizant. HCL and Cognizant got away with it, claiming that American workers who were displaced by visa holders were not their employees. Hence, even though the judge did not entirely reject the idea that the Americans were “adversely affected” by being fired, there was little he could do legally.

Quote:
Disney’s employees had little legal recourse, despite the judge accepting that Americans were “adversely affected”. This is a classic example of how outsourcing companies such as HCL and Cognizant abuse H-1B
Show more

The article below provides another data point.
https://www.charlotteobserver.com/news/b ... 76692.html

Now, I am not trying to question the ethics of the situation or whether something like this should be allowed as per the “free-market” economy. The point is that H-1B visa was not designed for this purpose and is clearly being abused by outsourcing companies. Read the section on Statistical evidence for more details.

3.1.2 Statistical Evidence

This is the most damning evidence. Here is the logic!! If an H-1B worker were truly adding skills or closing a skill gap, the median wage of H-1B worker employed for computer related applications would be higher (significantly higher) than the median wage for the general Computer and Mathematical occupations group. (Basic economics – high demand, low supply leads to price increase).

Unfortunately, the actual data tells a completely different story. The median wage of H-1B worker is way lower than the median wage for Computer and Mathematical occupation professional.



There is a significant difference in median salary of Initial Employment group to that of the sector ($67,000 vs. $81,430). Note, it is pertinent to compare their Median Salary since Initial Employment refers to the people who are employed for the first time under H-1B visa.

Comparing 75 Percentile points show how bad the situation really is!!

I was hoping that that at least half the people in the IT category would be employed to fill a critical skill gap. Hence, I expected the 75 percentile numbers to be much closer. I was surprised to find the opposite. The 75th percentile employment number for “Initial Employment group” for H-1B visa holders stands at $80,000 –  significantly lower than the 75 Percentile number ($109,490) for Computer and Mathematical occupations.



1. https://www.bls.gov/oes/current/oes150000.htm
2. https://www.uscis.gov/sites/default/fil ... ort-14.pdf

Comparing the number above, it is clear that a good number of H-1B Visas are allocated to replace American jobs and not to add skills missing in the economy today.

3.1.3 Which companies abuse the H-1B Visa?

As per the data collected by NYTimes, a majority of the abuse of H-1B Visas is by India outsourcing companies. According to this NYTimes article excerpt

Congress set a limit of 85,000 visas annually, and more than 10,000 companies applied in 2014. But just 20 companies received more than 32,000 visas.


The article further goes on to state

Under federal rules, employers like TCS, Infosys and Wipro that have large numbers of H-1B workers in the United States are required to declare that they will not displace American workers. But the companies are exempt from that requirement if the H-1B workers are paid at least $60,000 a year. H-1B workers at outsourcing firms often receive wages at or slightly above $60,000, below what skilled American technology professionals tend to earn, so those firms can offer services to American companies at a lower cost, undercutting American workers.




From the chart above, the following things are very clear:

    1.Pretty much every outsourcing company starts its pay scale at $60K so that it does not have to prove a shortage of skill. (exempt route)
    2.Most firms that employ workers directly pay quite well (firms such as Microsoft, Intel, Google etc.). Unfortunately, such firms accounted for just ~ 5000 visas together in 2014.
    3.Combining this data with the stats above, the low median wages for Computer Related Occupations - Initial Employment group seem to be driven by the outsourcing firms.

4.0 WHAT IS THE IMPACT OF THIS ABUSE ON MBA STUDENTS?



Lottery System – Unfair to MBAs

If the number of applications exceeds the annual quota in the first week, an occurrence common in the recent years, H-1B visas are granted by a computer-run lottery. For example, in 2016 USCIS received over 236,000 H-1B petitions for 85,000 slots during the filing period, which began April 1, including petitions filed for the advanced degree exemption.

On April 9, USCIS used a computer-generated random selection process, or lottery, to select enough petitions to meet the 65,000 general-category cap and the 20,000 cap under the advanced degree exemption

This hurts MBA students in three ways:

Reduced chance of securing a Visa: It reduces their chances of securing a visa even when they have a sponsor. In the best case, there is a 1 in 3 chance that an MBA will be granted a H1 Visa.  Take a look at this article that mentions a Kellogg MBA who had to go back because he could not get lucky in the lottery.

Need to file for a visa by April 1: If as an MBA, you don’t have a job offer by March 1 in your graduating year, you will not likely be able to apply for the lottery (remember, the lottery draw has occurred on April 9th since 2014).

Fewer job opportunities: Many employers who know the numbers will not even consider H-1B candidates for many positions because of such poor odds. The last thing you want as an employer is to go through a hiring process and not be able to bring the person on board because of a lottery. This is especially true for MBAs because they are usually hired for critical positions.

Based on the data from GMAC, only 28% of the employers who planed to hire MBAs in the U.S. in 2015 expected to hire international candidates. Those employers who did not plan to hire MBAs cited the H-1B lottery as one of the reasons for the same.

In addition, Business schools limit enrollment of MBA students because of the H-1B cap. During an open discussion at AIGAC conference in 2016 Matthew J. Slaughter – Dean of Tuck School of Business, Dartmouth mentioned that they are unable to offer admissions to many deserving candidates because of the paucity of H-1B Visas. I am sure, other business schools feel the same.
 
Quote:
To summarize, the current regulations do not work in favor of MBAs.  In fact, they work against them. You may do all the hard work, get admits from the Best Business Schools of the world, yet there is a 66% chance that you won’t be able to work in USA and you may be saddled with $200K of loans if you fail to win the lottery. Frankly, the situation as it stands today is pathetic. A change will likely improve this situation.
Show more
 


Remove the Loophole and there are enough Visas



 Just some interesting Math – the top 15 outsourcing companies get ~30,000 visas allotted to them (Chapter 3.1.3) Assuming a 1:4 allocation to application ratio, these outsourcing firms file 120,000 visa applications (or LCAs). Note, we have only accounted for the 15 big outsourcing companies. In addition, there are hundreds of smaller outsourcing companies in USA that fly below the radar. These all potentially could account for another 20,000 to 30,000 applications. Therefore, out of the 236,000 H1B petitions filed in 2016, 150,000 probably are filed by outsourcing companies. Most likely, 80% of these are for low cost IT jobs that would likely go away with the regulation change. (Based on the 75 percentile salary stats discussed in chapter 3.1.2)
 
Essentially, if one takes outsourcing out of the equation, pretty much everyone who applies for a H1 Visa will be granted one.

5 BILLS THAT ARE PROPOSED


5.1 HIGH-SKILLED INTEGRITY AND FAIRNESS ACT OF 2017


There are two bills that have been proposed to address the H-1B issue. The more recent one called HIGH-SKILLED INTEGRITY AND FAIRNESS ACT OF 2017 is proposed by ZOE LOFGREN. This bill proposes:

Resetting the current dependent wage exemption level from $60,000 to $130,000

A. Employers hiring IT workers that want to go for “exempt filing process” must pay “35 percentile points” above the median for the most recent national annual wage for Computer and Mathematical Occupations. This numbers currently comes out to $130,000.

B. If the employer is paying the visa applicant lower than 85 percentile level then the employer must prove attestations regarding recruitment and non-displacement of U.S. workers.

C. Eliminates the Master’s Degree exemption for dependent employers. This means that there will not be a separate quota for Master’s degree holders.

D. Mandates that employers to provide immigration paperwork to the H-1B visa holder within three years of the date on which the petition was filed with the government


$130K number is for “exempt filing process” and is “not fixed”

There are a few things that I want to elaborate. First of all, the $130,000 number is for computer related jobs and not for post MBA jobs. Secondly, this number will likely be refined and be better defined based on the regional salary levels as well as job verticals. It is very possible that we end up being at 70 percentile rather than 85. Remember, this is just a proposal. However, one thing is more or less certain – the $60K pay limit for exempt group will be increased.


The non-exempt route does not require a certain minimum salary

No minimum salary that is proposed in the non-exempt route. Surely, going this route requires a bit more paperwork but remember, prior to 1998 doing such paperwork was the only route to securing an H-1B Visa.

There are a few other interesting points about market based allocation of H-1B visas. You can read the proposal here.
The last thing I want to mention is that ZOE LOFGREN is a democrat from California and has gone up against President Trump on his recently passed immigration ban. So there is a possibility that this bill may not pass in its entirety.

5.2 PROTECT AND GROW AMERICAN JOBS ACT


Bill 2 - Protect and Grow American Jobs Act by Darrell Issa (Republican) and co-sponsored by Scott Peters (Democrat). Read more here.
This bill proposes to raise the salary requirement exempt H-1B nonimmigrant positions to $100,000/year (up from $60,000/year currently) and eliminate the Masters Degree exemption.

The bill requires an inflation adjustment to the salary threshold every third fiscal year

In essence, this bill is similar to the one by ZOE LOFGREN except that it has a fixed ceiling instead of a floating one based on one’s occupation.

6.0 TO CONCLUDE – CHANGE MAY BRING MORE GOOD NEWS


When passed, there are several potential benefits for MBAs if the ceiling on minimum H-1B wage is raised to discourage low cost outsourcing that displaced American workers. $100K or higher. These are:

1. Higher chances of securing H-1B visa.
2. More job opportunities.
3. Potentially more seats at B-schools.

This change is good news if you are someone who is in the top 20 percentile in your MBA class. Why!! Because you probably bring something unique – something that’s worth paying a premium for. So keep a tab on the H-1B developments but focus on building your own unique brand. Work on that GMAT score – a 90+ percentile adds to the unique value you bring. Contribute to your company’s development, since your accomplishments there will also accentuate your uniqueness. Lastly, do multiple internships during your MBA as these will help showcase why you bring qualities that are otherwise in short supply. Bottom line – work hard, work smartly and make a difference!!

In the end, I would say that America is a country of immigrants. It has always welcomed working and deserving candidates with open arms. Work hard to make yourself deserving and plan towards getting admitted to the school of your choice.

Disclaimer: Both these bills have just been introduced. They are not an executive order from the president. Note, fewer than 15% of bills pass House and about 3% get enacted although with Republicans, Democrats, and the President behind these, there is a good chance that one of these in some form may be passed.

Attachments

H1B proposed Changes 3.pdf [921.34 KiB]
Downloaded 149 times

User avatar
amacaqueru
User avatar
Joined: 13 Jun 2016
Last visit: 06 Nov 2020
Posts: 6
Own Kudos:
5
Location: Ecuador
Concentration: Strategy
Schools: HBS '18 Sloan '18 Stanford '18 Yale '19 Wharton '19 Booth '19
GMAT 1: 670 Q46 V48
GPA: 3.23
Schools: HBS '18 Sloan '18 Stanford '18 Yale '19 Wharton '19 Booth '19
GMAT 1: 670 Q46 V48
Posts: 6
Kudos: 5
H-1B Visa changes – A Potential Boon for MBA Applicants 04 Feb 2017, 17:59
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I've been looking forward to studying in a top MBA program but I've been afraid that after the MBA I would be unable to repay the loans if I could not stay in the US. If the changes you mention will help MBA students to get top jobs in the US, this is such a good news.
User avatar
Skywalker18
User avatar
Retired Moderator
Joined: 08 Dec 2013
Last visit: 15 Nov 2023
Posts: 2,039
Own Kudos:
9,960
Given Kudos: 171
Status:Greatness begins beyond your comfort zone
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Products:
My Reviews
Posts: 2,039
Kudos: 9,960
H-1B Visa changes – A Potential Boon for MBA Applicants 04 Feb 2017, 21:45
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Well written article :good . Let's hope getting an H1b becomes easier for MBA grads who have studied in the United States .
User avatar
abhimahna
User avatar
Board of Directors
Joined: 18 Jul 2015
Last visit: 06 Jul 2024
Posts: 3,514
Own Kudos:
5,728
Given Kudos: 346
Status:Emory Goizueta Alum
Products:
My Reviews
Expert
Expert reply
Posts: 3,514
Kudos: 5,728
H-1B Visa changes – A Potential Boon for MBA Applicants 04 Feb 2017, 23:28
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Great article. Kudos!!
User avatar
Rohit6
User avatar
Joined: 29 Jun 2015
Last visit: 18 Feb 2018
Posts: 238
Own Kudos:
80
 [1]
Given Kudos: 7
Location: Singapore
Concentration: Operations, General Management
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
GPA: 3.4
WE:Manufacturing and Production (Manufacturing)
Products:
My Reviews
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
Posts: 238
Kudos: 80
 [1]
H-1B Visa changes – A Potential Boon for MBA Applicants 07 Feb 2017, 06:50
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Passing and implementing a bill may takes months, may be even years...How does one make a decision if he's targeting an MBA this year?
User avatar
Skywalker18
User avatar
Retired Moderator
Joined: 08 Dec 2013
Last visit: 15 Nov 2023
Posts: 2,039
Own Kudos:
9,960
Given Kudos: 171
Status:Greatness begins beyond your comfort zone
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Products:
My Reviews
Posts: 2,039
Kudos: 9,960
H-1B Visa changes – A Potential Boon for MBA Applicants 07 Feb 2017, 07:16
Kudos
Add Kudos
Bookmarks
Bookmark this Post
rohitbansal1507
Passing and implementing a bill may takes months, may be even years...How does one make a decision if he's targeting an MBA this year?
Show more

That is the gamble prospective students this year have to take else move to a country with fewer restrictions on immigration . :wink:
User avatar
Rohit6
User avatar
Joined: 29 Jun 2015
Last visit: 18 Feb 2018
Posts: 238
Own Kudos:
80
Given Kudos: 7
Location: Singapore
Concentration: Operations, General Management
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
GPA: 3.4
WE:Manufacturing and Production (Manufacturing)
Products:
My Reviews
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
Posts: 238
Kudos: 80
H-1B Visa changes – A Potential Boon for MBA Applicants 07 Feb 2017, 17:37
Kudos
Add Kudos
Bookmarks
Bookmark this Post
True..This is a bit of gamble...What I'm trying to understand is if its worth the risk...
For a person joining in 2017 he/she will start recruiting for internships in Jan '18. It's a surety no bill will be passed by then. Moreover, if any bill is passed after April '18 then that will be applicable for the next fiscal year, by that time the damage would have already been done.
Also, even if the existing rule prevails, then these IT companies will be tempted to put more applications as this may be there last chance to get the free ride. This will makes things even worse for an MBA grad.

Moreover, I'm connecting with folks in US and I learned that many companies (and I mean big firms that recruit heavily from top 20 MBA programs) have already freezed hiring for international students in 2016-17 owing to the uncertainty.

Is it really a gamble or wishful thinking for some1 going to US this year for MBA? :lol:

Skywalker18
rohitbansal1507
Passing and implementing a bill may takes months, may be even years...How does one make a decision if he's targeting an MBA this year?

That is the gamble prospective students this year have to take else move to a country with fewer restrictions on immigration . :wink:
Show more
User avatar
Mo2men
User avatar
Joined: 26 Mar 2013
Last visit: 09 May 2023
Posts: 2,439
Own Kudos:
1,478
Given Kudos: 641
Concentration: Operations, Strategy
Schools: Erasmus (II)
Products:
My Reviews
Schools: Erasmus (II)
Posts: 2,439
Kudos: 1,478
H-1B Visa changes – A Potential Boon for MBA Applicants 10 Feb 2017, 04:14
Kudos
Add Kudos
Bookmarks
Bookmark this Post
rohitbansal1507

Moreover, I'm connecting with folks in US and I learned that many companies (and I mean big firms that recruit heavily from top 20 MBA programs) have already freezed hiring for international students in 2016-17 owing to the uncertainty.
Show more

I was in contact with different nationalities in Ross and KF. Both agreed that till today they have not seen any change of behavior of companies recruiting international students. Some of them have secured jobs. They cited different companies in different fields.

We can wait and see and wish the best.
User avatar
ashwink
User avatar
Current Student
Joined: 15 Mar 2014
Last visit: 20 Nov 2023
Posts: 169
Own Kudos:
168
Given Kudos: 12
Location: United Kingdom
Concentration: Technology, General Management
Schools: Kenan-Flagler'23 (M)
GPA: 4
Schools: Kenan-Flagler'23 (M)
Posts: 169
Kudos: 168
H-1B Visa changes – A Potential Boon for MBA Applicants 22 Feb 2017, 02:47
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Well written article! It would just be a waste of time and money, especially a FT MBA, if you end up jobless with a huge debt :(
In the proposed bills, there is a statement to eliminate the Master's degree exemption. Doesn't this work against international candidates?
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 18 Nov 2025
Posts: 5,108
Own Kudos:
32,883
Given Kudos: 700
GMAT Date: 08-19-2020
Expert
Expert reply
Posts: 5,108
Kudos: 32,883
H-1B Visa changes – A Potential Boon for MBA Applicants 23 Feb 2017, 13:41
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I understand the concerns that a number of you have regarding the proposed changes to H-1B. First of all, you should be concerned and closely watch any changes to the Visa process. However, some of you are missing the crux of proposed regulations. Hence, please read below:

1. H-1B was designed to enable students such as yourself i.e. those who complete their Masters and MBAs from elite universities to work here. You guys are not abusing the system, a good number of folks from companies such as TCS, Infosys, Satyam etc. are. Because of this abuse, legitimate candidates (you) are unable to secure a Visa because of the upper cap on the number of Visas issued.
2. The proposed regulations primarily seek to address this abuse, hence making more visas available for deserving candidates such as yourself.
3. Duration of OPT: Nothing changes for MBA students. It currently is 1 Year, and will remain the same. For STEM students (Science, Technology, Engineering, Maths), there is a proposal that the duration of OPT be reduced. Again this is a secondary agenda item in the proposal, and there is a good chance that the duration will continue to be same.
4. The same companies that hire International MBA students (about 20% of all companies that recruit on campuses) are currently fighting to ensure that these changes are passed in a fair manner.
5. One more thing – H-1B visa is not an immigrant visa. There is no negative impact on immigration policies as a part of these proposals (nothing that pertains to you guys anyway). In fact, some bills want to make immigration easier for H-1B visa holders.

Lastly, remember these are proposals. These proposals are debated, amended, and then passed. The purpose of these proposals is to make it easier for you to secure a Visa. Hence, watch them closely but don’t be afraid of them. Don’t let this give you a reason to procrastinate your GMAT Preparation or MBA application. At the same time should you look at other international B-Schools – Absolutely!! Especially if they provide the same/similar value that US B-Schools provide.
avatar
theincredible
avatar
Joined: 30 Jul 2014
Last visit: 02 Oct 2025
Posts: 32
Own Kudos:
16
 [2]
Given Kudos: 17
Products:
My Reviews
Posts: 32
Kudos: 16
 [2]
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 06:34
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
egmat
I understand the concerns that a number of you have regarding the proposed changes to H-1B. First of all, you should be concerned and closely watch any changes to the Visa process. However, some of you are missing the crux of proposed regulations. Hence, please read below:

1. H-1B was designed to enable students such as yourself i.e. those who complete their Masters and MBAs from elite universities to work here. You guys are not abusing the system, a good number of folks from companies such as TCS, Infosys, Satyam etc. are. Because of this abuse, legitimate candidates (you) are unable to secure a Visa because of the upper cap on the number of Visas issued.
2. The proposed regulations primarily seek to address this abuse, hence making more visas available for deserving candidates such as yourself.
3. Duration of OPT: Nothing changes for MBA students. It currently is 1 Year, and will remain the same. For STEM students (Science, Technology, Engineering, Maths), there is a proposal that the duration of OPT be reduced. Again this is a secondary agenda item in the proposal, and there is a good chance that the duration will continue to be same.
4. The same companies that hire International MBA students (about 20% of all companies that recruit on campuses) are currently fighting to ensure that these changes are passed in a fair manner.
5. One more thing – H-1B visa is not an immigrant visa. There is no negative impact on immigration policies as a part of these proposals (nothing that pertains to you guys anyway). In fact, some bills want to make immigration easier for H-1B visa holders.

Lastly, remember these are proposals. These proposals are debated, amended, and then passed. The purpose of these proposals is to make it easier for you to secure a Visa. Hence, watch them closely but don’t be afraid of them. Don’t let this give you a reason to procrastinate your GMAT Preparation or MBA application. At the same time should you look at other international B-Schools – Absolutely!! Especially if they provide the same/similar value that US B-Schools provide.
Show more

Hi Payal,

I am a prospective MBA candidate and have been following the developments closely. Although I agree with a few of your points, but it seems you have correlated a lot of information and come to unwarranted conclusion. Being a GMAT prep company, I can understand the positive bias but I believe I can add a few more points to this conversation.

1. There is off course an abuse by the so called software outsourcing companies who send herd of undeserving techies to US. But before concluding the impact of policies, we should try to understand what the Donald trump led government is trying to achieve. It is trying to weed out not only this blatant visa abuse but limit IMMIGRATIION in general. It is trying to bring more jobs for American people in every sector. Post MBA industries are not an exception. International students studying MBA are IMMIGRANTS and will be looking for jobs in the US. Donald Trump has said nothing reassuring about students studying in US universities. There goes the political side of the story.

2. Policies are not going to adjust to economic realities, but economy will adjust to policies. So companies are already cautious in hiring international MBA graduates. Even if yuo don't believe this, let's hear what GMAC survey has to say. If anyone has gone through the GMAC survey, less than 25% companies in US are willing to hire international students this year. This shows the reality and the survey results have been published!

3. As to your point about companies taking care to ensure that visa changes are not biased, let me assure you that companies (however large they may be) have ABSOLUTELY NO SAY in this matter!! Why do you think top executives of Google, Facebook and Microsoft have taken to streets and protesting? Why do you think they didn't try to pressurize the government using their powerful lobbies? This government has broken many myths about US politics and will continue to do so. Let's not assume(at least for now) the visa policy decisions will be taken with the intention to encourage international students.

4. Last but not the least, the proposal to increase the minimum salary of H1-B visa holders to $1,30,000 will negatively impact MBA hiring. The chances of this figure reducing is very high, but the minimum salary is going to increase. By how much will the figure increase, no one is sure. Most importantly, this proposal just shows the mindset of the government. This shows that it is willing to DISCOURAGE people from applying for H1-B visa.

I respect your analysis and as you rightly pointed out, these are proposals. But you are getting ahead of yourself in painting a rosy picture. Let's be realistic and take things at face value. It's also possible that a new visa might be introduced for international students so that they might not apply for H1-B, there is no official word yet. My advice would be to wait and watch. If you are willing to take the risk, I will appreciate your courage. But since I have to take out a large loan, I am still waiting for the haze to clear!

I also thank ashwink and Rohit6 have added some valuable points.
User avatar
Rohit6
User avatar
Joined: 29 Jun 2015
Last visit: 18 Feb 2018
Posts: 238
Own Kudos:
80
Given Kudos: 7
Location: Singapore
Concentration: Operations, General Management
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
GPA: 3.4
WE:Manufacturing and Production (Manufacturing)
Products:
My Reviews
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
Posts: 238
Kudos: 80
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 08:23
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Dear Payal,
Thanks a lot for your detailed response. Good to connect with you months after attending your live classes :lol:

Coming to the topic, I agree we aren't the folks who are abusing the system but the reality of the day is we suffer more than the folks who actually abuse. While this pisses me off sometimes but then I think of what Bill Gates once said: "Life is not fair, get used to it".

There are so many who have already suffered in last 2-3 years and possibly the trend won't change in at least next 1-2 years.

At this point, I really don't care about the "intention" of H1B or the politics around it. Fact is my friends from Stanford, Kellogg and Wharton are returning back to India for lack of H1B sponsors while those who went to tier-2 colleges in India and joined IT firms are working in US on H1B and preparing there GC applications.

I'm not sure who's at gain/loss here. This is how it is. Sad but true...

egmat
I understand the concerns that a number of you have regarding the proposed changes to H-1B. First of all, you should be concerned and closely watch any changes to the Visa process. However, some of you are missing the crux of proposed regulations. Hence, please read below:

1. H-1B was designed to enable students such as yourself i.e. those who complete their Masters and MBAs from elite universities to work here. You guys are not abusing the system, a good number of folks from companies such as TCS, Infosys, Satyam etc. are. Because of this abuse, legitimate candidates (you) are unable to secure a Visa because of the upper cap on the number of Visas issued.
2. The proposed regulations primarily seek to address this abuse, hence making more visas available for deserving candidates such as yourself.
3. Duration of OPT: Nothing changes for MBA students. It currently is 1 Year, and will remain the same. For STEM students (Science, Technology, Engineering, Maths), there is a proposal that the duration of OPT be reduced. Again this is a secondary agenda item in the proposal, and there is a good chance that the duration will continue to be same.
4. The same companies that hire International MBA students (about 20% of all companies that recruit on campuses) are currently fighting to ensure that these changes are passed in a fair manner.
5. One more thing – H-1B visa is not an immigrant visa. There is no negative impact on immigration policies as a part of these proposals (nothing that pertains to you guys anyway). In fact, some bills want to make immigration easier for H-1B visa holders.

Lastly, remember these are proposals. These proposals are debated, amended, and then passed. The purpose of these proposals is to make it easier for you to secure a Visa. Hence, watch them closely but don’t be afraid of them. Don’t let this give you a reason to procrastinate your GMAT Preparation or MBA application. At the same time should you look at other international B-Schools – Absolutely!! Especially if they provide the same/similar value that US B-Schools provide.
Show more
avatar
theincredible
avatar
Joined: 30 Jul 2014
Last visit: 02 Oct 2025
Posts: 32
Own Kudos:
16
Given Kudos: 17
Products:
My Reviews
Posts: 32
Kudos: 16
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 09:35
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Rohit6 : I also have a friend who is an alumnus of Tepper. He was working in a small boutique consulting firm. He was told to leave the firm. Now he is searching for a job in Canada. We are on very shaky grounds now.
If you don't mind me asking, are you still planning to pursue your MBA this year? Or you are looking to do in some other country such as Canada? Just wanted to know your viewpoint.
User avatar
BagretsovaN
User avatar
Joined: 09 May 2013
Last visit: 11 Jul 2019
Posts: 19
Own Kudos:
5
Given Kudos: 17
Location: Russian Federation
Concentration: Strategy, Finance
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
GPA: 3.84
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
Posts: 19
Kudos: 5
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 09:56
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello theincredible!
Is it possible to find a job in Canada after MBA in USA? I mean in visa terms - is it tough or not very?
avatar
theincredible
avatar
Joined: 30 Jul 2014
Last visit: 02 Oct 2025
Posts: 32
Own Kudos:
16
Given Kudos: 17
Products:
My Reviews
Posts: 32
Kudos: 16
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 12:41
Kudos
Add Kudos
Bookmarks
Bookmark this Post
BagretsovaN
Hello theincredible!
Is it possible to find a job in Canada after MBA in USA? I mean in visa terms - is it tough or not very?
Show more

BagretsovaN : Hi there, things are pretty much simple in Canada. Its pretty much easier to find jobs in Canada and visa policies are encouraging for international students. Although the Canadian economy is not as big as US, jobs are plenty, especially in business hubs such as Toronto and Vancouver. I think Canada seem like the better option right now.
User avatar
BagretsovaN
User avatar
Joined: 09 May 2013
Last visit: 11 Jul 2019
Posts: 19
Own Kudos:
5
Given Kudos: 17
Location: Russian Federation
Concentration: Strategy, Finance
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
GPA: 3.84
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
Posts: 19
Kudos: 5
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 14:47
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi theincredible!

I know that Canadian legislation toward international students is more favoritable, but is the same for international students who studied on other countries such as USA? However, the top MBA programs in USA are much higher in the ratings than Canadian. Education is for the whole life, not only to get the first job. So I consider option to get the degree in USA, and in case of visa problems try to get a visa/job in Canada.
avatar
theincredible
avatar
Joined: 30 Jul 2014
Last visit: 02 Oct 2025
Posts: 32
Own Kudos:
16
 [1]
Given Kudos: 17
Products:
My Reviews
Posts: 32
Kudos: 16
 [1]
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 22:39
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
BagretsovaN
Hi theincredible!

I know that Canadian legislation toward international students is more favoritable, but is the same for international students who studied on other countries such as USA? However, the top MBA programs in USA are much higher in the ratings than Canadian. Education is for the whole life, not only to get the first job. So I consider option to get the degree in USA, and in case of visa problems try to get a visa/job in Canada.
Show more

I agree with you about getting a quality education from higher ranked US colleges. As far as Canadian job market is concerned, it has enough jobs for Canadian MBA grads. I believe you can get a decent job in Canada after graduating out of a good US college (with slightly lower pay). However, there is a silver lining. If too many US MBA grads start looking for jobs in Canada, there could be an issue. Remember, the number of students in Canadian MBA schools too will increase and there will not be too many jobs available. That's my viewpoint.
User avatar
Rohit6
User avatar
Joined: 29 Jun 2015
Last visit: 18 Feb 2018
Posts: 238
Own Kudos:
80
Given Kudos: 7
Location: Singapore
Concentration: Operations, General Management
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
GPA: 3.4
WE:Manufacturing and Production (Manufacturing)
Products:
My Reviews
Schools: ISB '18 (A) Kellogg 1YR '18 (M$) Tepper '19 (A) Anderson '19 (A$) Judge"18 (D) Duke '19 (D) Sloan '19 (D) Haas '19 (WL) Ross '19 (WL) LBS '19 (D) Insead Sept '17 (D)
GMAT 1: 740 Q50 V40
Posts: 238
Kudos: 80
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 23:10
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I'm still going to do an MBA from US. I'm hopefully putting down my ISB admit and choosing a top US program.


theincredible
Rohit6 : I also have a friend who is an alumnus of Tepper. He was working in a small boutique consulting firm. He was told to leave the firm. Now he is searching for a job in Canada. We are on very shaky grounds now.
If you don't mind me asking, are you still planning to pursue your MBA this year? Or you are looking to do in some other country such as Canada? Just wanted to know your viewpoint.
Show more
avatar
theincredible
avatar
Joined: 30 Jul 2014
Last visit: 02 Oct 2025
Posts: 32
Own Kudos:
16
Given Kudos: 17
Products:
My Reviews
Posts: 32
Kudos: 16
H-1B Visa changes – A Potential Boon for MBA Applicants 08 Mar 2017, 23:52
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Rohit6
I'm still going to do an MBA from US. I'm hopefully putting down my ISB admit and choosing a top US program.


theincredible
Rohit6 : I also have a friend who is an alumnus of Tepper. He was working in a small boutique consulting firm. He was told to leave the firm. Now he is searching for a job in Canada. We are on very shaky grounds now.
If you don't mind me asking, are you still planning to pursue your MBA this year? Or you are looking to do in some other country such as Canada? Just wanted to know your viewpoint.
Show more

Thanks for your reply. I wish you all the best for your future!
User avatar
BagretsovaN
User avatar
Joined: 09 May 2013
Last visit: 11 Jul 2019
Posts: 19
Own Kudos:
5
Given Kudos: 17
Location: Russian Federation
Concentration: Strategy, Finance
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
GPA: 3.84
Schools: Duke '19 (A)
GMAT 1: 690 Q50 V34
Posts: 19
Kudos: 5
H-1B Visa changes – A Potential Boon for MBA Applicants 09 Mar 2017, 12:02
Kudos
Add Kudos
Bookmarks
Bookmark this Post
theincredible, thank you for your point of view.
 1   2   3   4   5