What’s the Latest
- On September 19, 2025, the U.S. government announced that employers will need to pay a $100,000 fee for new H‐1B visa petitions. Barron’s+2Indiatimes+2
- The fee comes into effect on September 21, 2025, and does not apply to existing H-1B visa holders or renewals of visas issued before that date. AP News+2Indiatimes+2
- Also clarified: this is a one-time fee per petition, not an annual recurring charge. AP News+1
Why GMAT Takers & MBA Applicants Should Care
The GMAT is typically a precursor to applying for MBA programs. For many international students, the workflow is:
Take GMAT → Apply to MBA → Graduate → Seek employment in the U.S. → H-1B sponsorship
With the fee hike, several parts of this chain are impacted.
- Employer Hesitation / Sponsorship Risk
- Employers may become more selective about whom they sponsor, because the cost per new hire has shot up dramatically.
- Especially for mid-tier MBA graduates or less “high-demand roles”, sponsors may scrutinize whether paying that fee is worth it for the candidate.
- ROI Calculations Get Tougher
- U.S. MBAs are expensive (tuition, living, opportunity cost). The expectation is that post-MBA salaries + H-1B sponsorship will help recoup that investment. If sponsorship becomes more difficult or fewer companies take the risk, ROI gets less certain.
- Potential students may compare U.S. MBA investment vs alternatives (other countries, work earlier, etc.) more closely.
- Premium on Credentials & STEM Designation
- GMAT score, school ranking, program strength, specialization (especially STEM) become more important differentiators. Strong GMAT scores and MBA programs with clear employer pipelines will be more competitive.
- STEM-designated MBA or MS programs that allow extra work authorization (OPT / STEM OPT) will be more attractive as they offer extended post-graduation work time without depending immediately on H-1B.
- Shift in School / Country Choice
- Some applicants might apply to fewer U.S. schools or reduce the U.S. component of their applications.
- Other markets (Canada, UK, Australia, Germany, etc.) with relatively easier post-study work and visa rules may see increased demand.
- Admissions Deadlines & Timing Considerations
- People applying now or finishing MBA in the next couple of years need to account for these policy changes.
- Employers advised some current holders to return or apply before the fee took effect, so timing of applications / job offers may matter more.
Pros & Cons from a GMAT / MBA Aspirant’s View
| Pros | Cons |
|---|---|
| Brand & Network Value of U.S. MBA still holds, especially at top schools | Lower probability of employer sponsorship may reduce job prospects or increase risk |
| STEM MBA programs + OPT period give buffer time before needing H-1B | Increased cost for employers could reduce the number of offers extended to international students |
| Strong GMAT/GRE + good school rank + specialized skills become more valuable differentiators | Programme fees + opportunity cost are higher; uncertainty means longer ROI period or greater risk |
| Shift to backups (other countries, remote work, etc.) may open more flexible paths | Psychological / decision fatigue; students may delay or drop plans due to uncertainty |
Practical Advice for GMAT Takers & MBA Applicants
- Aim high on GMAT / GRE: Higher scores help you stand out and justify the sponsorship cost to employers.
- Pick programs wisely: Prioritize MBA programs with STEM designation or strong post-study work options; look for strong corporate recruitment networks.
- Have backup plans: Include non-U.S. schools in your applications; consider countries with favorable visa policies.
- Build your skills early: Experience, projects, leadership, specialization — things that make you “must-hire.”
- Engage with prospective employers: Understand their policy on H-1B sponsorship; maybe some will absorb fee or adjust compensation.
Final Thoughts
The $100,000 H-1B fee is a major policy shift. It doesn’t make U.S. MBAs impossible, but it adds a layer of complexity and risk. For GMAT test takers and MBA hopefuls, the key isn’t to panic but to plan more with clarity:
- Know that existing visa holders/renewals are safe under current clarifications.
- Factor in the fee risk when choosing programs, negotiating job offers.
- Use the uncertainty to your advantage — stand out academically and professionally, aim high, and diversify options.
If you want, I can prepare a visual cost-comparison model (tuition + opportunity cost + visa risk) specifically for Indian applicants to help you decide what makes sense.