NEW STUDY PERMIT GUIDELINES
Since January 2024, the Canadian Government has introduced a cap on the number of study permits that are issued to international students. This study cap was for 2024 & 2025. This was a response to the issues being faced by international students due to a housing shortage in many cities and the lack of employment opportunities due to the surge in international student enrollments since the Covid pandemic.
For 2025, the Immigration Minister had announced that 437,000 study permits will be issued for the year, including graduate students. This was a 10% drop in study permits compared to 485,000 in 2024. The aim of the cap was to balance the number of incoming students with the capacity of Canadian institutions to ensure that the educational experience remains exceptional. As a secondary step, the focus will shift to managing resources more effectively, providing quality education and maintaining the infrastructure to support international students.
Expected Study Permit Applications: 437,000
Study Permits allocated to students who are required to submit a PAL: 316,276
This group includes college students, undergraduate students, language students, graduate diploma programs, masters and doctoral programs. Approximately 17% of the study permits are allocated for Graudate Students.
In April 2024, the Canadian Government announced the allocation of study permit applications that would be allowed from each province. Each province would be required to ensure that the allocations are not exceeded. The allocations have been decided on the basis of the population size of the province. Based on the number of study permits issued in the last few years, it has been assumed that 60% of the applications for study permit will be approved.
An analysis from ApplyBoard shows that in 2024, the number of approved study permits decreased by approximately 45% compared to the previous year.The approval rate for study permit applications in 2024 was approximately 50%.
The following are the province/territory allocations for 2025:
Province | UG & Other Allocations | Graduate Allocations | Total Allocation | Expected Approved Study Permits |
|---|---|---|---|---|
Alberta | 42,082 | 5,256 | 47,338 | 32,660 |
British Columbia | 47,754 | 28,333 | 76,087 | 53,589 |
Manitoba | 16,611 | 1,980 | 18,591 | 10,021 |
New Brunswick | 11,673 | 3,112 | 14,785 | 6,430 |
Newfoundland and Labrador | 6,534 | 2,648 | 9,182 | 4,664 |
Northwest Territories | 705 | 0 | 705 | 220 |
Nova Scotia | 14,411 | 4,191 | 18,602 | 8,297 |
Nunavut | 0 | 0 | 220 | 220 |
Ontario | 149,011 | 32,579 | 181,590 | 116,740 |
Prince Edward Island | 2,044 | 391 | 2,435 | 1,250 |
Quebec | 123,956 | 38,786 | 162,742 | 72,977 |
Saskatchewan | 14,850 | 2,791 | 17,641 | 8,869 |
Yukon | 463 | 1 | 464 | 339 |
Total | 430,094 | 120,068 | 550,162 | 316,276 |
Provincial Guidelines
British Columbia
In line with the cap on study permits announced by IRCC, the British Columbia government issued guidelines in July 2024 by which they further capped the number of international students that post-secondary institutions can enroll up to 30% of their total enrollment. This cap is expected to impact private universities who are more dependent on international students for financial viability. Public universities and colleges generally do not accept more than 30% international students every year so the impact will be less on them. These institutions will have to submit international education strategy plans to the government which will also monitor the compliance with the cap. New post-secondary institutions in British Columbia are already banned from enrolling international students for two years.
Ontario
The Ontario Government has also announced that it will prioritize the public post-secondary programs that help prepare graduates for jobs in high demand sectors to support Ontario's labor market needs. The government will allocate 96% of the study permit applications to publicly assisted colleges and universities and just 4% to language schools. The high-demand areas that will be given priority are skilled trades, health, human resources, STEM, hospitality and childcare. The guidelines also emphasize that international student enrollment levels cannot exceed the 2023 levels and a maximum of 55% of domestic enrollments for 2023. The Ministry of Colleges and Universities in Ontario had announced earlier this year that "all public institutions will receive at least the same number of applications as they used in 2024". Out of the 181,000 PAL's allocated, 32,000 are set aside for master's and doctoral students.
Alberta
The province of Alberta has one of the lowest proportions of international student enrollments amongst all provinces at just 11.5% compared to British Columbia at 24% and Ontario at 16%.
Saskatchewan
The Saskatchewan government has temporarily stopped accepting any new applications for designation in the Saskatchewan International Student Program. This program will start accepting applications from January 2026.
Manitoba
The Manitoba Government has also announced that the PAL’s will be issued by the universities in the province and not by the government.
THE INITIAL IMPACT
IDP's Canada Sector Survey reveals that the new immigration settings have created uncertainly in the market. Conducted in September 2024, the survey looks into the impact of the recent changes on how international students are being admitted and global perspectives on the Canadian education brand.
While the survey found that the education industry was not opposed to federal intervention since there was a need to address quality control issues and a lack of provincial oversight, they believe that federal intervention was necessary to manage the rapidly increasing international enrollments.
However, the survey also highlighted a disappointment at the way the policies were developed especially the lack of engagement with the colleges and associations. There is also a belief that the Canadian education brand has been damaged in the overseas market, making it much more difficult to compete for international students and that this will lead to a decline in enrollments which will have an impact on the Canadian institutions.
1. Increased Competition: Provinces like Ontario and British Columbia will see more competition among institutions which may raise admission standards, making it harder to secure an offer letter. Ontario will see a 55% reduction in study permit approvals. This will lead to a stiff competition for fewer seats for international students. British Columbia is stopping all new accreditations for institutions enrolling international students and increasing inspections to ensure quality education. This guarantees high quality education while restricting choice. Nova Scotia is capping tuition fees and boosting university funding to enhance student support and housing.
2. Administrative Bottlenecks: There could be delays or rejections for students who have already applied to institutions which could force students to look at other countries.
3. Disqualification of Private College Graduates: Students enrolled or applying to certain private colleges will need to have clarity about the admission process or focus more on applying to public institutions as many private colleges may be barred from enrolling international students as provinces prioritize publicly funded institutions for the allocation of study permits.
4. Restriction on Spouse Work Permits: Students looking to move to Canada with their families will need to reconsider their plans due to the new restrictions on spousal work permits.
5. Increased financial strain: The higher GIC requirement will impose a financial constraint on incoming international students which is likely to reduce the number of applications from many countries.
In August 2024, it was found that demand from Canada's top five markets had fallen with India down by 24% and Iran down by 15%. Analysts expected a 47% drop in approved permits by the end of 2024. This is in comparison to the government's expected drop of 35% in approved study permits. In October 2024, the Economic Times reported that agents were seeing 50-60% fewer applications from Indian students for Fall 2025.
LONG-TERM IMPACTS:
1. Diversification of smaller provinces: Over the next few years, less popular provinces like Alberta, Quebec, Saskatchewan, Newfoundland and Manitoba might become more appealing to international students as they increase their capacity for international students. This may also result in more quality institutes opening in these provinces.
2. Improvement in Education Quality: In the coming years, the focus on maintaining high educational standards and increased inspection of institutions will result in improved teaching quality. Private colleges that lose eligibility for postgraduate work permits may experience a decline in enrollments leading to financial difficulties and eventual closures.
3. Re-evaluation of policies: The restrictions on spouse work permits might require Canada to reassess and revise its policies to attract international students who plan to move with their families, thereby balancing the need for skilled students with family support.
4. Improved Infrastructure: The reduction in international students will reduce the pressure on housing and healthcare systems and allow for improvements and better support for current and future students. The slower growth rate of international student admissions will help Canada build the required infrastructure and enhance the overall student experience.
