H-1B for International Students in 2027: The $100,000 Fee, the Weighted Lottery and Your US Master's ROI

If you are planning a US master's for 2027, the H-1B question decides your return on investment more than any ranking does. Two things changed in the last year: a $100,000 payment on certain new H-1B petitions, and a lottery that now favours higher salaries. This post explains where both stand as of October 2026, what they mean for an Indian student on F-1, and how to plan around them. H-1B rules are under active litigation, so check USCIS before you make any decision.

The $100,000 H-1B Fee: Who It Applies To

Presidential Proclamation 10973 (September 2025) required a $100,000 payment on new H-1B petitions for workers outside the United States. A second proclamation in September 2026 extended it through 21 September 2027.

The detail that matters for students: USCIS guidance says the payment does not apply to a change of status inside the US, for example an F-1 student on OPT moving to H-1B without leaving the country. It also does not apply to extensions, change of employer or amendments for people already in H-1B status. Where it can bite a graduate is if you leave the US (for example, your OPT ends and you go home) and your employer then files for you from abroad.

Where the Court Cases Stand (October 2026)

As reported by immigration law firms and legal press (we could not confirm a court-status notice on the USCIS site itself):

• June 2026: a federal court in Massachusetts, in a case brought by 20 states, vacated the fee policy. The First Circuit refused to pause that ruling in July.
• 30 September 2026: a federal court in Northern California blocked the agencies from enforcing the fee, including the renewed September 2026 proclamation.
• 9 October 2026: the government appealed the California order to the Ninth Circuit and asked for a stay.

So the $100,000 fee is reported as not being collected right now, but that could change quickly if an appeals court grants a stay. Separately, DHS published a proposed rule in August 2026 for a fee of about $103,265 on all cap-subject H-1B petitions, which, as described, would include in-country change of status. It is a proposal only, not in force, and not covered by the court orders. This is the item to watch. If it is finalised in that form, the change-of-status exemption that protects F-1 students would no longer help.

The New Weighted H-1B Lottery

From the FY 2027 season (registration in March 2026), the H-1B lottery is no longer purely random. Under a DHS final rule effective 27 February 2026, each registration gets entries based on the offered salary's prevailing-wage level for that job and location:

• Level I: 1 entry
• Level II: 2 entries
• Level III: 3 entries
• Level IV: 4 entries

In the rule, DHS estimated selection chances of roughly 15% at Level I, 31% at Level II, 46% at Level III and 61% at Level IV, against about 30% under the old random draw. These are DHS projections, not published results. If an employer lists several worksites, the lowest wage level among them counts. The annual cap is unchanged: 65,000 regular slots plus 20,000 for US master's graduates.

This is the bigger long-term change for students. Most fresh master's graduates are offered entry-level salaries, which often sit at Level I or II, so the odds have moved against new graduates and towards experienced, well-paid hires.

What This Means for Your US Master's ROI

A US master's still gives you US work rights without the lottery through OPT. The question is how many lottery attempts you get and how strong your salary is when you enter.

• Pick STEM-designated programmes. Twelve months of OPT plus the 24-month STEM extension can give you up to three H-1B registration seasons instead of one. See our OPT vs CPT guide for how to protect that time.
• Salary now affects your lottery odds. A role in a high-demand field, or prior work experience that supports a Level II or higher offer, makes a real difference. That is one reason our MS vs MBA comparison weighs work experience heavily.
• Plan to stay in the US until your H-1B is approved. The cap-gap rule extends F-1 status and work authorisation to 1 April for students whose employers file a timely cap petition. Leaving and having your employer file from abroad is the scenario the $100,000 proclamation targets.
• Budget for a Plan B. If you are not selected within your OPT window, decide in advance whether you would move to Canada, return to India with a US degree, or pursue further study. Build that into your loan repayment plan before you enrol.

Should You Still Go?

• The US still makes sense if: your programme is STEM-designated, your field pays well at entry level, and you can repay your loan on an Indian salary or OPT earnings even without an H-1B.
• Think harder if: your whole plan depends on a first-year H-1B selection, your field typically pays Level I salaries, or your loan only works with a long US career.

For the wider picture, read Should You Still Study in the USA?, and use our shortlisting framework to check programmes for STEM designation.

Get a US Plan Built Around the New H-1B Rules

We can't predict the courts or the lottery, but we can help you choose a programme, budget and backup plan that still work if the rules move against you. Book a consultation with Goodwind and we'll go through your profile, target field and loan plan with you.