OPTimized. Why STEM MBAs help students and institutions.

Every year the U.S. hosts more than a million international students, with the numbers increasing at the fastest rate in 40 years. Despite strict immigration policies in the past decade, the U.S. remains the top choice for students seeking higher education abroad, many drawn by access to the job market and career opportunities, particularly in STEM fields. Increasingly, international students are pursuing STEM-designated MBA programs for advanced business education and the visa advantages that come with it. This growing trend offers extended opportunities for Optional Practical Training (OPT) and boosts chances of securing an H-1B visa, making STEM MBAs a strategic choice for those seeking to maximize their career prospects in the U.S.

Race for an H1-B

Most nonresident individuals seeking legal employment in the U.S. will require a visa at a certain point. Employer-sponsored H-1B visas are popular and applicable to most cases. To apply, an applicant’s prospective occupation must relate closely to their earned degree. Plus, the employer must demonstrate to the U.S. Department of Labor that the employee possesses unique skills, making them preferable to U.S. citizen applicants.

With an annual cap on the number of H-1B visas granted, a lottery system used for selection and more than 400,000 applicants yearly, the chances of selection have decreased. In 2024, the odds of winning the visa lottery were approximately 25%, down from 27% in 2023 and 44% in 2022, for bachelor’s degree holders. Those with master’s and doctoral degrees had a higher chance, at approximately 40%, in 2024 due to different cap regulations.

Increasing the odds

International graduates from accredited U.S. universities have the right to work in a major-related field for up to one year under Optional Practical Training for F-1 students (OPT). However, STEM degree holders can extend their training up to three years, giving them not only more time to gain industry experience but also three shots at applying for an H1-B sponsorship. 

After doing some math — or rather, complicated probability calculations of winning the H1-B lottery over multiple years — the chances of receiving an H1-B sponsorship over three years increase to 58%. This assumes a constant annual probability of 25%. If a student decides to pursue a master’s in STEM, they will have three additional years of post-completion OPT. This could raise their chances to approximately 91%, assuming a 40% annual chance for graduate applicants.

According to Uninxt Study Overseas, an India-based company that helps students apply abroad, consulting businesses are the largest employers of STEM MBA graduates from elite business schools. 

“After completing their MBA at one of the top 100 business schools, the majority of my students who chose to work in finance, business analytics or data science were able to find employment, which was unlikely with traditional MBAs,” said Mayurica Chauhan, an independent education counselor and a director of Uninxt.

It is apparent why students are increasingly motivated to pursue STEM over non-STEM degrees, especially at the master’s level. But what about universities? How are they accommodating international students’ needs, especially those whose primary focus or career aspirations are not necessarily in biology or engineering?

Is STEM the new black?

STEM-designated MBA programs are a recent trend at many business schools. Although these changes can surely be attributed to the constantly evolving job market needs, it is evident that attracting international students with STEM OPT perks has played a role.

Babson College introduced its STEM MBA program as part of a broader redesign of its MBA curriculum in May 2019. By adding qualified electives to an MBA curriculum, graduate students can now pursue STEM-eligible MBAs with concentrations in quantitative finance or business analytics and machine learning. M.S. in Business Analytics and M.S. in Finance tracks offer the necessary courses to qualify for STEM.

The Duke Fuqua School of Business webpage even has a separate “STEM Qualifying” section along with standard “Online” and “In-Person” learning options to appeal to prospective students.

More importantly, some of Duke’s master’s programs are conveniently designed for recent college graduates, so if one year of OPT after getting a Bachelor’s in Business didn’t play out, students can learn more skills and utilize three additional years on the U.S. job market to master them.

Babson and Duke are not the only pioneers in graduate STEM business education. According to a survey by Kaplan and Manhattan Prep, the percentage of full-time MBA programs with STEM designations increased from 13% in 2020 to 30% in 2022. For example, the University of Texas at Austin–McCombs obtained STEM certification for 14 of its 22 MBA concentrations back in 2020. The University of San Diego Knauss School of Business hopped on the STEM trend more recently, designating three MBA concentrations in August 2023.

The rise of STEM-designated MBA and M.S. programs across U.S. business schools reflects a broader shift in higher education to meet the demands of a technology-driven job market while addressing the needs of international students. These programs offer a win-win scenario: for students, they provide extended work opportunities and better career prospects, while for institutions, they help offset declining domestic enrollments and tuition revenue caused by the demographic cliff. International students do not qualify for federal loans, and many rely on financial support from personal and family resources, which accounted for 60.7% of international graduate student funding in 2022-2023. As the business landscape continues to evolve and international students seek U.S. degrees, the allure of STEM MBAs will likely intensify, positioning them as a cornerstone of future business education and a major draw for business schools.