H1B visa process after lottery makes it tough for Indian MBA Students

Indian MBA students in the U.S. of America have to go through the visa process twice. The first one is for their F1 visa before they can start their MBA in USA. [Related post: F1 Visa requirements in U.S. for Indian students]

The second one is at the time of graduation when they need to initiate their H1B visa process for the work permit to stay back in America and take up their dream jobs.

While the F1B visa process was never a cakewalk for international students (related post: F1 visa rejection after MBA admission with scholarship), the lottery system has made the H1B visa process more complicated than ever. Now there’s a whole new element of luck added to the mix.

Here’s the lowdown on what’s happening with the U.S. work permit application process and what you need to be aware of as an international student in USA.

What is an H1B visa?

The US H1B visa is the most popular option for international professionals to work in the U.S. in a non-immigrant capacity. It is granted by the U.S. Citizenship and Immigrations Services (USCIS).

However, you can apply for it yourself. It has been done on your behalf by your prospective employer. IT companies in India have been using up a big chunk of these each year.

In the regular category, the USCIS grants upto 65,000 H1B visas. However, there is an exception (upto 20,000 applicants) for those who have a Masters degree (or higher) from America. Indian MBA students studying in American business schools would get this benefit.

Why have a lottery system for the U.S. H1B visa process?

The limit of 65,000 and 20,000 to grant H1B visas might’ve looked big enough at the planning stage. But USCIS probably didn’t anticipate the demand for it. According to the Economic Times (Apr 11, 2014), the USCIS got 172,000 H1B applications.

Faced with the reverse Gabbar Singh dilemma (‘Goli 3 aur aadmi 6!’), the officials had a tough task on hand.

Not sure how it all unfolded internally, but somewhere along the way, some creative soul within the team who was inspired by Mr G Singh’s non-scientific problem resolution methods might’ve suggested delegating the difficult decision to lady luck.

So, out came computers to help out humanity in distress. The nerd who originally designed the random number generator function – used so ubiquitously nowadays in computer programs (including the H1B visa lottery process) – might’ve never realized the devastating impact he’d be having on so many careers.

Fortunately, H1B applications falling under the Masters degree category were given preferential treatment. But there were still many more petitions left. Those went back into the lottery process.

What does it mean for international and Indian MBA students in USA?

Many bright MBA students from India including those from the top MBA programs in USA are coming back home. Quite a few of them never planned for this eventuality. They don’t have jobs right now. And they have a big MBA loan staring them in the face. Not a good situation to be in.

The basic takeaway of the lottery system is that the story isn’t over when you clear the recruitment process and get a post-MBA job in hand. You are still dependent on the unpredictability of the H1B visa lottery process to seal your destiny.

What it also highlights is the importance of having a backup plan.

Start thinking about what you can do if the lottery process doesn’t favour you and you have no option but to come back to India after completing your MBA (or MS or any other advanced degree) in America.

Apart from reaching out to employers in the U.S., start networking with companies in India as well. There are many good MBA jobs in India that pay well, provide ample opportunities for career growth and allow you to use your MBA skills.

But all this won’t happen overnight. Job hunting is a slow and painful process. You need to have a strategy and an execution plan in place many months in advance.

If you’ve read Beyond The MBA Hype, you probably considered many of the risks inherent in going for an MBA abroad. The H1B visa risk is just one of them. Be aware of the others as well.

Policies keep changing and it’s tough to control many aspects that decide your fate.

Don’t put everything you have at stake, specially when you can’t afford to lose it all.

These basic principles apply to MBA programs in other countries too.

After getting the best education if you come back to India, there are still plenty of exciting things to look forward to. If you have the tenacity to ride through the rough patches, the tide will turn. So, keep an open mind and cheer up!

Read this related post:
F1 to H1B Visa process

Source: http://articles.economictimes.indiatimes.com/2014-04-11/news/49058680_1_advanced-degree-exemption-uscis-h-1b-petitions

Disclaimer: We have no expertise in legal matters. This post is to quickly get you up to speed on the changes in the H1B visa process with the introduction of the lottery system. Please visit the official website (uscis.gov) and carry out your independent research before taking any decisions.


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Sameer Kamat //
Sameer Kamat
Founder of MBA Crystal Ball. Author of Beyond The MBA Hype & Business Doctors. Here's more about me. Connect with me on Google+ | Twitter | Facebook | Linkedin

13 Comments

  1. Oracle says:

    >>>>> However, there is an exception (upto 20,000 applicants) for those who have a Masters degree (or higher) from America. Indian MBA students studying in American business schools would get this benefit.

    Are you sure MBA students will benefit? As far as I know, these extra 20K petitions are for students with STEM degrees from US. Students who are pursuing MS would benefit, not the MBA ones.

    Sameer, Can you please confirm?

  2. Sameer Kamat says:

    @Oracle: The official site labels the category as “H-1B Master’s Exemption” and describes it as follows:

    ‘An advanced degree exemption is provided for the first 20,000 petitions filed for a beneficiary who has obtained a U.S. master’s degree or higher. Once that limit is reached, any petitions filed for beneficiaries with a U.S. master’s degree or higher will count against the regular cap, unless exempt for other reasons.’

    Technically, MBA is a ‘U.S. master’s degree’ like the other MS programs, so I’d assume it is included.

    Here’s another article on Businessweek that specifically talks about the impact on MBA students because of this cap.

    But as the disclaimer mentions, we don’t have the legal expertise in this area. Maybe one of the bschool websites have mentioned something about it.

    If anyone comes across any credible source that clarifies this, it’ll be great if it can be posted here.

  3. Sid says:

    This article is very informative. It is also a reality check for many Indian applicants, who, unfortunately, think that getting a job in the US on OPT will save them from the visa hassles. I personally know of some people (graduates from top MBA programs) who had to come back to India after a year of OPT. Moreover, in such a case having the degree from a global top ranked institution makes it relatively easier to find well-paying, suitable opportunities in India, rather than just another foreign degree from institutions that are ranked relatively low.

    This is another useful thread on this topic…
    http://gmatclub.com/forum/jobs-in-usa-and-h1b-visas-do-some-students-have-no-option-162191.html

  4. bchak says:

    Hi Sameer,
    Much thanks for this valuable article.

    I was just browsing going through H1B details on the corresponding website, but bit confused about the TOTAL COST of H1B Visa!

    Could you please shed any light on this ?

  5. Sameer Kamat says:

    @Sid: Thanks for sharing your thoughts and also the link.

    @bchak: I’m not sure about the costs. But curious to know why candidates should be concerned about it, when it’s borne by the employer.

  6. Rahul Jha says:

    It is regarding EMBA Program in India which needs 5 years work experience.
    If someone working on temporary visa leaves an organization in USA, he does not
    get experience letter.

    So, In that case, how he can show his experience and apply for programs ?
    Will Offer letter and leaving letters will work as in India , we always get experience letter from company – is it mandatory to have for program

  7. Sameer Kamat says:

    Rahul: I’m sure you have other evidence to show you were employed by the company in the U.S. / India. Anyway, I’m assuming your temporary visa meant you went there for a short duration and the majority of your work has been in India. Why not focus on that?

    But not having an experience letter will raise other questions, about the circumstances that forced you to take such a drastic decision.

  8. Sid says:

    Hello Mr. Kamat

    The scenario you mentioned above here would be applicable to MS graduates too??

  9. Sameer Kamat says:

    @Sid: Yes, it’s applicable to anyone who is dependent on H1B work permit visas.

  10. Srikanth` says:

    The difference with MBA and STEM related courses are OPT extension for 17 months after 12 months which will have chance of applying for 2-3 times for H1B lot if planned properly.(Increasing the probability of H1b or atleast earn as much as we can in those 29 months unlike MBA which has 12 months OPT and no extension.)

  11. kveg says:

    Hi Sameer,
    Studying EMBA from a dual degree program (one university in USA) will be eligible for ADE for H1 ?
    Regards
    MurthY KveG

  12. Bharat says:

    Can’t I apply for EB 2 visa instead of hb1 after the MBA?

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