Studying in the United States on an EB-5 Visa

Renowned for its top-ranked Ivy League colleges, the United States is a top destination for students around the world. Many foreign nationals studying at U.S. universities enter the nation on an F-1 student visa with the hopes of staying in the country after graduation. However, the process of immigrating to the United States can be complex, and student visas like F-1 come with numerous work and residency restrictions.

The EB-5 visa offers a solution to the challenges F-1 students often face. The EB-5 program can grant permanent U.S. resident status—that is, a Green Card—which offers international students many advantages before, during, and after their university studies.

Limitations of the F-1 Student Visa

The F-1 visa is designed for international students who wish to study at U.S. educational institutions. To qualify for the F-1 visa, a foreign national must be enrolled as a full-time student in a U.S. institution, have sufficient funds to cover tuition and living expenses, and intend to leave the U.S. after completing their studies.

While F-1 visas are valid for a period of up to five years, the student’s residency status in the United States remains valid for the entire duration of their study. In cases where there is a delay in the study duration, such as due to a change of major or illness, students have the option to request an extension of their status from their educational institution. Students can also stay for an additional period after completing their studies via Optional Practical Training (OPT). This allows students to work in their field of study for a limited period after graduation.

For many individuals, the F-1 student visa suits their needs and enables them to pursue an education in the United States.

Others, however, are deterred by the F-1 visa’s restrictive and temporary nature. This is where many international students turn their focus to the EB-5 visa, an investment-based Green Card that allows the holder to live, work, and study anywhere in the United States without restriction.

How Can the EB-5 Visa Benefit International Students?

In terms of education and employment opportunities, the EB5 investment visa offers international students the same advantages as those afforded to U.S. citizens. These include a higher likelihood of acceptance to U.S. colleges, access to more affordable in-state tuition rates, no employment restrictions, and the ability to continue residing in the United States after graduation.

Easier Admissions Process

U.S. colleges consistently rank among the top universities in the world, making them attractive to both international and domestic students and resulting in highly competitive admissions processes.

Domestic students are far more likely to be accepted than international students.

By obtaining an EB-5 Green Card, a student is considered a U.S. resident, meaning they apply alongside U.S. citizens instead of international students. As such, EB-5 investors have much better odds of being accepted into a U.S. college than their international peers who do not have EB-5 visas.

In fact, U.S. Green Card holders can be up to 9% more likely than international students to gain admission into a U.S. university. Furthermore, while the acceptance rates for domestic students at top-tier universities are also low, students with EB-5 Green Cards have a 4.5% chance of being accepted into Harvard, compared with the 0.1% chance that international applicants face.

Lower Tuition Rates

Higher acceptance rates are not the only benefit for EB-5 visa holders when applying to U.S. colleges. Since Green Card holders are considered U.S. residents, they can qualify for in-state tuition rates when attending colleges within their state of residence. While the rates vary between institutions, these lower tuition rates may also increase the number of schools an applicant considers, making schools previously deemed too expensive affordable.

If tuition is still too high even after in-state deductions, EB-5 visa holders have another advantage over other international students: They can apply for financial aid through programs such as Free Application for Student Aid (FAFSA). On top of that, EB-5 Green Card holders may also be eligible for grants from the institution itself and for scholarships offered by various entities.

A Reliable Alternative to the H-1B Visa

Upon completing their studies and OPT time period, many international students intend to remain in the U.S. on the H-1B visa, a work-based visa tied to employer sponsorship. Unfortunately, the H-1B visa presents various challenges of its own.

For example, some students are forced to leave the U.S. upon completing their studies because they are unable to find an employer sponsor in time.

Once again, the EB-5 visa offers a solution to students looking to remain in the United States. Individuals who apply for the EB-5 visa while already residing in the U.S. can apply for Adjustment of Status (AOS) alongside their initial EB-5 application.

By doing so, a student’s status changes from F-1 or OPT to “pending”, and they do not have to leave the U.S.

Moreover, a student can request an employment authorization document (EAD) and travel document with their AOS submission.

Within months, the applicant can legally live and work in the US without employer sponsorship or restrictions while they wait for their EB-5 Green Card application to be processed.

A recent EB-5 investor in our Twin Lakes Georgia project received an EAD and travel document in only 60 days.

Opportunity for Valuable Work Experience

One of the primary disadvantages to the F-1 visa is the work restrictions imposed on international students. F-1 students are limited in the number of hours they can work on campus and are only allowed to work off campus in certain circumstances. Furthermore, F-1 students who go on to obtain the H-1B visa still face work restrictions: They may only work for their approved employer and are prohibited from engaging in activities to generate side income, such as freelance work.

Their ability to launch their own business is also significantly hindered, as it would count as a different company that gets in the way of their obligations to their approved company.

In contrast, the EB-5 visa offers total freedom in regards to working in the United States. EB-5 visa holders can work at any company as a U.S. citizen can, including those not related to the applicant’s degree or those that are too small to undertake H-1B sponsorship.

Moreover, the EB-5 visa allows an international student to freely engage in freelance or independent contracting work outside of their regular duties. They may monetize creative endeavors, such as art and music, and can even launch their own business without the complications an H-1B worker would face.

Making an EB-5 Investment as an International Student

The basic requirements of the EB-5 investment program can be summarized as follows: Invest the necessary capital in a qualifying new commercial enterprise (NCE) and create or preserve at least 10 new jobs for U.S. workers.

The required minimum investment amount differs depending on the location of the chosen NCE. For standard NCEs, the minimum threshold currently sits at $1,050,000.

Most EB-5 investors, however, opt for projects located in targeted employment areas (TEAs), as these NCEs qualify for a reduced investment minimum of $800,000.

In most cases, international students themselves do not possess the required capital for an EB5 investment, but their parents or family might. As such, many parents gift EB-5 funds to their college-aged children so they can apply for the EB-5 visa. United States Citizenship and Immigration Services (USCIS) — the governmental branch that oversees the EB-5 program — accepts funds from various sources for EB-5 investment, with gifts being a commonly used one.

To make an EB-5 investment with gifted funds, investors must present an agreement stating that the transaction is a gift and that the recipient does not have an obligation to repay the donor. Additionally, all EB-5 investors must provide evidence that their investment capital was lawfully sourced as well as documentation of the path their funds took from origin to EB-5 investment.

As it may be challenging and time-consuming to gather source-of-funds documentation, investors are encouraged to first consult a qualified EB-5 lawyer to determine the best sources to use.

For personalized guidance on getting started on the EB-5 immigration process, we invite you to schedule a free consultation with EB5AN.