A controversial change to the rule that would have hindered international students seeking work in the United States after graduating has officially been scrapped.

The USCIS has announced that from March 9 the H-1B visa system will be changed to prioritise applicants offered higher salaries, which stakeholders worry will "disproportionately" affect international students seeking entry level jobs in the country after graduation.

US H1-B policies may be preventing foreign PhD students in the US from working at startups, in favour of larger companies, restricting startups’ access to a talented workforce.

US Citizenship and Immigration Services has temporarily suspended fast track H-1B visa petitions in a bid to address a backlog and lengthy processing times.

There's a risk of erosion to the attractiveness of the US as a study destination as the newest executive order marked the first steps towards H-1B visa reform, educators said.