Understanding Recent Changes in Canada's International Student Policies

The last year has seen the Canadian Government announce a series of measures aimed at restricting the number of international students enrolled in Canadian educational institutions. After years of promoting Canada as a study destination for international students, these announcements came as a shock to many.

The Impact of the Pandemic

The trigger for these changes was the pandemic. The border closures led to a backlog of applications for student visas and temporary workers. As soon as IRCC started issuing visas, there was a huge influx of not just students but also those seeking work permits and immigration status in Canada. This surge overwhelmed the accommodation system, which was not prepared for such an increase.

The shortage of accommodation resulted in rising rental costs for students and new immigrants. Coupled with this was a spike in inflation due to global supply chain issues, which began to affect the local population significantly. Additionally, there were not enough jobs to cater to everyone arriving in Canada. This situation led to a backlash among Canadian citizens who were concerned about their own futures.

Government Response

Under these circumstances, the Canadian government felt compelled to take action. This included tightening work permits for international students and reducing the number of study visas issued each year. India has been particularly affected by these policy changes, as Indian students make up close to 40% of the total international student enrollments. In 2023, there were nearly 300,000 Indian students studying in Canada.

Key Changes in Policies

Let us explore some of the significant changes that have been announced:

1. Increase in the Cost-of-Living Fund Requirement

Effective January 2024, international students applying to study in Canada must now double the amount of money they need to show as proof of funds. They are required to demonstrate C$20,635 instead of the previous C$10,000 to apply for a study permit. This is in addition to the first year of tuition and travel costs. This adjustment was made after nearly twenty years and reflects the increase in the cost of living over the years. This policy change may impact many students who might struggle to afford studying in Canada, potentially limiting the number of applicants from India.

2. Off-Campus Working Hours

During the Covid-19 pandemic, the Canadian government temporarily allowed international students to work off-campus for more than 20 hours a week while attending classes. This policy ended on April 30, 2024. From May until September, international students were allowed to work only 20 hours a week. This limit increased to 24 hours from September onwards.

3. Cap on Enrollment of International Students

In January 2024, the government announced a cap on the number of international students who would be issued study permits. With international student numbers exceeding one million in December 2023, the IRCC set a cap for 2024 at 360,000 approved study permits, a decline of 35% from 2023. For 2025, the number was further reduced by another 10%. The government also allocated provincial and territorial caps based on population. Provincial governments were given the flexibility to decide how to distribute the caps among their approved educational institutions. Additionally, every study permit application must be accompanied by an attestation letter from a province verifying admission to the educational institution.

4. Restriction on Post-Graduate Work Permits

Starting September 2024, another restriction was introduced for international students enrolled in study programs that are part of a curriculum licensing arrangement. These students will no longer be eligible for a post-graduation work permit after completing their program. These programs, run by private institutions, have seen significant growth in attracting international students and are considered to have been misused by some.

5. Open Work Permits for Spouses Restricted

In January 2024, the government announced that open work permits would only be available to spouses of international students enrolled in master’s and doctoral programs. This eligibility will no longer extend to undergraduate and college programs.

6. Temporary Foreign Worker Program (TFWP) Changes

The temporary resident population had grown rapidly over the last few years, reaching up to 2.5 million people. While acknowledging the importance of temporary workers in key sectors like construction and healthcare, it was felt that the system needed to be more sustainable and efficient. Starting September 2024, limits will be placed on the number of temporary residents that Canada will admit. India had the second highest number of temporary foreign workers in 2023, with 26,495. Changes to the TFWP include: no processing of LMIA applications for low-wage streams in metro areas with an unemployment rate of 6% or higher. This will impact cities like Toronto, Ottawa, Calgary, and Edmonton, which employ many temporary foreign workers. Exceptions will be granted for seasonal and non-seasonal jobs in agriculture, food processing, and fish processing. Employers will not be able to hire more than 10% of their total workforce through the TFW Program. The maximum duration of employment for workers hired through the low-wage stream will be reduced to one year instead of two.

Consequences of the Restrictions

The consequences of these restrictions are already being felt in Canada. According to ApplyBoard’s report in September 2024, new study permits were expected to decline sharply by almost 50%, from 436,000 in 2023 to just over 231,000 in 2024. Overall, the report highlights that there will be a 39% drop in global applications for Canadian study permits compared to the previous year. This also indicates that the Canadian government’s target of approving 364,000 study permits in 2024 is unlikely to be met. The upcoming General Elections will determine if there is any shift in immigration or education policies that may impact international students in the coming years.

Contact CanadianXperience for guidance on understanding the new changes in the study permit process and requirements to confidently decide on your next step. CanadianXperience is an Education Consultancy specializing in study in Canada.