Quick answer: CPT is work authorization during your degree that must be part of your curriculum and is approved by your school. OPT is up to 12 months of work in your field, approved by USCIS, usually used after graduation. STEM OPT is a 24-month extension of OPT for eligible STEM graduates whose employer is enrolled in E-Verify.
If you are an Indian student in the USA, three short words will shape your earning journey: CPT, OPT and STEM OPT. They decide when you can take an internship, how long you can work after graduation, and whether you get enough time to try for an H-1B visa. Seniors in WhatsApp groups often explain them in confusing ways. This guide puts everything in one place.
Quick comparison table
| Feature | CPT | OPT | STEM OPT |
|---|---|---|---|
| When used | During the degree | Mostly after graduation | After OPT ends |
| Who approves | Your school (DSO) | USCIS (EAD card) | USCIS (EAD card) |
| Length | Tied to the course or semester | Up to 12 months | 24 more months |
| Job must relate to | Your curriculum | Your field of study | Your STEM degree |
| Employer requirement | Offer letter / internship agreement | None special | E-Verify, training plan (Form I-983) |
| Unemployment allowed | Not applicable | 90 days | 150 days in total |
What is CPT?
Curricular Practical Training is temporary off-campus work authorization that is an integral part of your academic program. In practice, this usually means an internship course for credit or a program where an internship or co-op is mandatory.
CPT eligibility
- You must be in valid F-1 status and enrolled full-time.
- Usually you must complete one academic year before using CPT. Some graduate programs that require practical training from the first semester are an exception.
- You need a job offer that relates to your major.
- Your DSO approves CPT in SEVIS and issues an updated I-20 showing the employer and dates.
Part-time vs full-time CPT
Part-time CPT means 20 hours or less per week, while full-time means more than 20 hours. The key rule: 12 months or more of full-time CPT makes you ineligible for OPT at the same degree level. Part-time CPT, no matter how long, does not reduce OPT.
Why CPT matters for money
Summer internships in software, data, finance and engineering often pay high hourly rates. One good summer can pay a large part of a semester’s tuition. CPT also helps convert an internship into a full-time offer for after graduation.
What is OPT?
Optional Practical Training lets you gain real work experience in your field for up to 12 months at each higher degree level. You can use it before graduation (pre-completion OPT, rarely used) or after (post-completion OPT, the common choice).
OPT application timeline
- You can file Form I-765 up to 90 days before your program end date and up to 60 days after it.
- Your DSO must first recommend OPT in SEVIS. You must then file with USCIS within 30 days of that recommendation.
- You cannot work until your EAD card is approved and its start date has arrived.
Job rules on OPT
Your job must be directly related to your major and normally must be at least 20 hours per week to count as employment. Unlike CPT, you do not need a job offer to apply for OPT. Many Indian students file early so that the card arrives around graduation.
The 90-day unemployment limit
On post-completion OPT, you can accumulate a maximum of 90 days of unemployment. Days start counting from the EAD start date. Volunteering or unpaid internships related to your field may count as employment if they are at least 20 hours a week, but keep proof and report all employment in the SEVP Portal within 10 days.
What is the STEM OPT extension?
If your degree is on the Department of Homeland Security’s STEM Designated Degree Program List, such as computer science, data science, electrical engineering or many business analytics programs, you may apply for a 24-month extension after your regular OPT.
STEM OPT requirements
- Your employer must be enrolled in E-Verify.
- You and your employer must complete Form I-983, a formal training plan.
- The job must be paid and at least 20 hours per week.
- You must apply before your current OPT EAD expires. If you file on time, you can usually keep working for up to 180 days while the application is pending.
- Unemployment limit increases by 60 days, so the combined limit is 150 days.
Why STEM OPT is valuable
The H-1B visa is a lottery. With 12 months of OPT, you may get one chance in the lottery. With STEM OPT, you get up to three years of work, which usually means up to three H-1B lottery attempts. From the 2026 season, the H-1B selection gives more weight to higher wage levels, so a better-paid role can also improve your chances. We cover salary and benefits in our H-1B money guide.
Cap-gap: the bridge between OPT and H-1B
If your employer files an H-1B petition for you and asks for a change of status, your F-1 status and work permission may be extended automatically while the petition is pending, under the cap-gap rule. Talk to your DSO the moment your H-1B is selected so that you do not have a gap in work authorization.
Costs involved
Filing Form I-765 for OPT and STEM OPT involves a USCIS filing fee, which is lower when you file online. USCIS adjusts fees from time to time, so check the current fee on the official USCIS fee page before filing. Premium processing may also be available for some OPT categories at an extra cost.
How to plan CPT, OPT and STEM OPT smartly
- Year 1: focus on grades, on-campus jobs and building a résumé.
- Summer after Year 1: use CPT for a paid internship.
- Final semester: apply for OPT about 90 days before graduation.
- OPT year: join an employer that uses E-Verify if you are in STEM, so the extension is easy.
- Before OPT ends: apply for STEM OPT on time.
Want to know which jobs are allowed before CPT kicks in? Read how Indian students can legally earn money on an F-1 visa.
Common mistakes Indian students make
- Taking 12 months of full-time CPT and losing OPT.
- Accepting an OPT job unrelated to their degree, like retail, just to stop the unemployment clock.
- Forgetting to update the employer details in the SEVP Portal.
- Joining a STEM OPT employer that is not on E-Verify.
- Traveling outside the USA while the OPT application is pending without understanding the re-entry risks.
A note on 2026 rule changes
In 2026, DHS finalized a rule that replaces the old “duration of status” admission for F-1 students with fixed admission periods and an extension-of-stay process. Work rules and timelines may be affected for some students, so read your school’s official update and ask your DSO how it applies to your program end date and OPT plans.
Frequently asked questions
Can I do CPT and OPT at the same degree level?
Yes, as long as you used less than 12 months of full-time CPT.
Can I start my own company on OPT?
Self-employment on regular OPT is possible if it relates to your field and you work at least 20 hours, but STEM OPT requires an employer-employee relationship with E-Verify, so self-employment does not qualify.
Do I get another OPT if I do a second master’s?
No. OPT is available once per higher degree level, so a second master’s does not give a new 12 months.
Bottom line
Think of CPT as your internship pass, OPT as your first job pass and STEM OPT as your bonus time to grow and enter the H-1B lottery. Planning all three from the first semester is the smartest money move an Indian student can make in the USA.
Disclaimer: This article is for general education only and is not legal, immigration, tax or financial advice. US rules change often. Always confirm with your school’s DSO, the IRS, USCIS or a licensed professional before making decisions.