By Kavita Mistry 
This year’s college graduates in the U.S. are facing one of the most difficult job markets in recent years. The unemployment rate for recent graduates rose to 5.8% in March 2025, up from 4.6% a year earlier. Underemployment is also a concern, with 41.2% of graduates working in jobs that don’t require a college degree. For Indian students, who represent a large portion of international students in the U.S., the situation is further complicated by legal uncertainties, visa issues, and political pressures.
Indian Students in U.S. Face Visa Threats and Political Scrutiny Amid OPT Uncertainty
Over 300,000 Indian students are currently in the U.S., with nearly 100,000 participating in the Optional Practical Training (OPT) program that permits work experience post-graduation. However, disruptions from Trump-era immigration policies continue to affect them. The American Immigration Lawyers Association reported that half of the 327 recent student visa revocations involved Indians. Many were caused by minor violations, like parking infractions. Although the Department of Homeland Security has moved to reinstate affected SEVIS records, the uncertainty and missed opportunities remain. Furthermore, a proposed bill to end the OPT program has alarmed Indian students, as many depend on OPT to transition to H-1B visas or permanent residency.
Political expression has also become a risk factor. At least a dozen international students, including Indians, have been detained by U.S. immigration authorities for participating in protests against Israel’s war in Gaza. High-profile cases, such as the arrest of Badar Khan Suri and the visa cancellation of Ranjani Srinivasan, have highlighted growing scrutiny and suppression of dissent, with some students facing deportation under rarely enforced laws.
AI Disruption and Loan Pressures Deepen Crisis for Indian Graduates in the U.S.
Compounding the employment challenge is the rise of artificial intelligence, which is replacing many entry-level roles traditionally filled by graduates. This trend is reducing job availability, lowering the value of college degrees, and intensifying student loan burdens. The reinstatement of involuntary debt collections by the Trump administration has worsened matters, with 20.5% of federal loan borrowers now over 90 days delinquent. Although April saw 177,000 new hires, stagnant wages and geopolitical tensions signal a tough road ahead for graduates—especially Indian students navigating both economic and immigration hurdles.
Summary:
U.S. graduates face a tough job market, with rising unemployment and underemployment. Indian students are hit harder by visa crackdowns, political scrutiny, and AI-driven job losses. OPT uncertainties and revived student loan collections add to their stress, making the path to employment and stability increasingly challenging in 2025.