How Parents Can Fund an EB-5 Visa for Their Child on an F-1 Visa
For many international students, studying in the United States on an F-1 student visa is a dream come true. The opportunity to access world-class universities, network with global peers, and build a foundation for a future career in the U.S. is highly attractive. However, the F-1 visa comes with strict limitations. It is temporary, does not directly lead to permanent residency, and often places students at the mercy of the competitive H-1B visa lottery after graduation.
For parents – particularly Indian nationals, who represent one of the largest groups of F-1 visa holders in the U.S. – the EB-5 Immigrant Investor Program has emerged as one of the most reliable solutions. By making a qualified investment in the U.S., Indian parents can help their children transition from F-1 status to permanent residency – providing stability, independence from employer sponsorship, and a clear path to a green card. Get more information on EB5 sources of funds https://www.eb5brics.com/eb-5-visa/source-of-funds
In this article, we will explore how parents, especially those from India and other high-demand countries, can fund an EB-5 visa for their child studying on an F-1 visa, the key requirements, and why EB-5 is becoming a preferred option for many international families.
Why F-1 Students Face Challenges After Graduation
The F-1 visa is designed for academic study, but it offers little certainty once the student completes their degree. After graduation, many F-1 students transition into Optional Practical Training (OPT) or STEM OPT extensions to gain work experience. However, this is only a temporary solution.
The traditional path for many graduates is the H-1B visa, which allows foreign workers in specialty occupations to work in the U.S. Unfortunately, the H-1B system is oversubscribed, with demand far exceeding the annual cap of 85,000 visas. The result is a lottery-based system, leaving many students without options once their F-1 or OPT expires.
This uncertainty is especially concerning for Indian F-1 students, who make up the second-largest group of international students in the U.S.. With thousands competing for limited H-1B spots each year, Indian nationals face enormous pressure when planning their post-graduation future.
Understanding the EB-5 Visa
The EB-5 Immigrant Investor Program was created to stimulate the U.S. economy through job creation and foreign investment. In exchange for a qualifying investment, foreign nationals and their immediate family members (spouse and unmarried children under 21) can obtain U.S. green cards.
Key requirements include:
- Investment Amount: $800,000 in a Targeted Employment Area (TEA) project or $1,050,000 in other qualifying projects.
- Job Creation: The investment must create at least 10 full-time jobs for U.S. workers.
- At-Risk Capital: The funds must be placed at risk in a qualifying EB-5 project until conditions are met.
For Indian students on an F-1 visa, EB-5 provides a direct path to permanent residency, avoiding the uncertainty of H-1B sponsorship and the extensive visa backlogs.
How Parents Can Fund the EB-5 for Their Child
A common question families ask is: Can parents provide the funds for their child’s EB-5 application? The answer is yes. U.S. immigration law allows parents – including Indian parents supporting their children in U.S. universities – to gift or loan the investment funds to their child, provided the source of funds is lawful and properly documented.
Here are the two primary ways parents can fund their child’s EB-5:
- Gifted Funds
Parents can make a financial gift to their child to use as the EB-5 investment. This is one of the most straightforward methods. USCIS requires proof that the funds were lawfully obtained, such as through income, savings, business proceeds, or asset sales. A notarized gift letter is also necessary, clarifying that the funds are a gift with no expectation of repayment.
Example: An Indian business owner sells property in Mumbai and gifts $800,000 to their child to make the EB-5 investment.
- Loans from Parents
Another option is for parents to provide a loan to their child, secured against assets owned by the parents. USCIS typically requires documentation proving that the loan is secured and legitimate. The child would then use these loaned funds to meet the EB-5 investment requirements.
Example: Indian parents use property in Delhi as collateral to provide a secured loan to their child studying on an F-1 visa in the U.S.
In both cases, transparent documentation is critical. USCIS carefully examines the source of funds to ensure they are legitimate and fully traceable.
For further information on the source of funds, visit the USCIS website: https://www.uscis.gov/policy-manual/volume-6-part-g-chapter-2
Advantages of EB-5 for F-1 Students
Parents who choose to fund an EB-5 visa for their child provide them with significant long-term advantages. For students, the benefits are particularly compelling and often outweigh the uncertainty of other visa options.
One of the most valuable benefits is the direct path to a Green Card. Unlike the H-1B lottery system, which leaves many international students uncertain about their future after graduation, the EB-5 program provides a clear and reliable route to permanent residency. This gives students the confidence to plan their education and careers without immigration-related setbacks.
Another advantage is the possibility of faster processing for some applicants. Under the 2022 EB-5 Reform and Integrity Act, certain visa categories – such as rural, high-unemployment, or infrastructure projects – receive priority processing. This can shorten the waiting time for students eager to secure their Green Cards more quickly.
EB-5 also opens doors to educational and career flexibility. Green Card holders face no visa restrictions when applying for internships, research roles, or full-time positions. Additionally, they may qualify for in-state tuition at public universities, which can significantly reduce the overall cost of higher education.
Finally, the EB-5 program creates a path to U.S. citizenship. After holding a Green Card for five years, the student may be eligible to apply for naturalization. This not only secures their long-term future in the United States but also expands career and personal opportunities in ways that temporary visas cannot.
Rising Trend Among Indian Families
In recent years, there has been a dramatic increase in the number of Indian families using EB-5 to support their children’s U.S. education and career goals. With over 268,000 Indian students currently studying in the U.S., the EB-5 visa has become a popular strategy to avoid the bottlenecks of H-1B and employment-based green cards.
Indian parents view EB-5 not just as an immigration solution but also as a strategic investment in their child’s long-term stability. By acting early, some Indian families are even filing EB-5 petitions before their children graduate, ensuring green card approval before F-1 or OPT expiration.
Key Considerations Before Applying
While EB-5 offers clear advantages, families should carefully evaluate:
- Project Selection: Choosing a reliable EB-5 project is critical. Working with reputable regional centers and legal advisors helps minimize risk.
- Processing Times: Indian and Chinese nationals should be mindful of country-specific visa backlogs, although the new set-aside categories can provide relief.
- Financial Documentation: Parents must ensure their source of funds is transparent, well-documented, and traceable to meet USCIS requirements.
Conclusion
For many students on F-1 visas, the path to permanent residency in the U.S. can be uncertain. The EB-5 Immigrant Investor Program offers a powerful alternative, giving families the ability to bypass the H-1B lottery and employment-based delays. By funding the EB-5 investment, parents can secure their child’s future, providing not just a green card but the long-term stability and opportunities that come with living in the United States.