Canada Decreases Study Permits for International Students 2025. Canada, once regarded as one of the most welcoming destinations for international students, is now witnessing a dramatic reduction in new study permits. According to a new report by ApplyBoard, the number of approved permits in 2025 has fallen to its lowest level in more than ten years — even lower than during the height of the COVID-19 pandemic.
This steep decline is a direct result of the federal government’s decision to impose strict intake caps on post-secondary institutions, significantly limiting the number of international students allowed to enter the country.
Sharp Decline in Study Permits
ApplyBoard’s projections reveal that only 80,000 new study permits are expected to be approved in 2025 — a 62% decrease compared to 2024. This figure represents a major setback for Canadian institutions, many of which rely heavily on international enrolments for both diversity and funding.
For context, even during the pandemic in 2020, Canada approved around 92,000 study permits, meaning this year’s number is at a historic low.
A Decade-Low Record
| Year | New Study Permits Approved | Change vs Previous Year |
|---|---|---|
| 2020 | 92,000 | — |
| 2021 | 125,000 | +35.8% |
| 2022 | 167,000 | +33.6% |
| 2023 | 210,000 | +25.7% |
| 2024 | 210,000 | — |
| 2025 (Projected) | 80,000 | −62% |
This drastic drop is being attributed to Ottawa’s stricter limits on the number of post-secondary students institutions can admit, a move that has raised serious concerns within the education sector.
Impact on Colleges and Universities
The 2025 cap has disproportionately affected colleges, where extensions now make up nearly 80% of all study permits issued. This means that less than 30,000 new permits are expected for college programs across the country — leaving thousands of international applicants without a study opportunity.
Colleges Face the Biggest Impact
College administrators are warning that this decline could lead to financial instability, job losses, and the possible downsizing of smaller institutions that depend heavily on tuition fees from foreign students.
In contrast, universities are showing slight recovery signs. The approval rate increased from 30% in May to 55% in August 2025, reflecting the government’s preference for degree-level programs over diploma-level ones.
However, experts caution that despite this improvement, the overall availability of new study permits remains limited, and universities too will face reduced diversity and revenue challenges.
Country-Wise Impact: India, Philippines, and Africa Hit Hardest
The ApplyBoard report highlights a growing regional disparity in approval rates. Students from India, the Philippines, and several African nations are currently facing the lowest visa approval rates, making it harder for them to pursue higher education in Canada.
Country-wise Approval Rate Overview (2025)
| Country | Approval Rate | Change from 2024 |
|---|---|---|
| India | 38% | −17% |
| Philippines | 41% | −12% |
| Nigeria | 35% | −14% |
| Kenya | 43% | −9% |
| Pakistan | 47% | −8% |
| China | 58% | −6% |
These figures suggest that visa restrictions are unevenly affecting students from developing regions, potentially reducing campus diversity — one of the hallmarks of Canada’s international education landscape.
Education experts warn that if these patterns persist, Canadian campuses may become less multicultural, affecting both the student experience and global reputation of Canadian institutions.
Why Canada Reduced Study Permits
The Canadian government introduced the study permit cap as part of a broader plan to address several issues linked to the rapid growth of the international student population.
Key Reasons Behind the Reduction
- Housing Crisis:
The influx of international students has intensified pressure on local housing markets, leading to rising rents and shortages in major cities such as Toronto, Vancouver, and Montreal. - Quality Concerns:
Authorities have raised concerns about some private colleges admitting large numbers of international students without providing quality education or adequate student support. - Immigration Balance:
Canada’s immigration targets are being recalibrated to maintain economic stability while ensuring that international students are not exploited or left without post-study opportunities. - Institutional Accountability:
The government aims to hold educational institutions more accountable by ensuring that only Designated Learning Institutions (DLIs) meeting specific standards can host international students.
Extensions Now Outnumber New Approvals
For the first time in history, students already living in Canada account for nearly two-thirds of all post-secondary permits issued this year.
This indicates that renewal and extension applications have surpassed new approvals, reflecting a major policy shift favoring existing students over newcomers.
Experts interpret this trend as a sign that Canada is prioritizing retention and transition to permanent residency for those already integrated into the system — a move that aligns with the government’s broader immigration strategy.
Predicted Decline in Student Population
If current restrictions remain, ApplyBoard warns that Canada’s total international student population could shrink by as much as 50% by 2026.
This means fewer new students arriving to replace graduates, potentially affecting the country’s reputation as a global education leader.
The decline could also have ripple effects on Canada’s economy, as international students contribute billions annually through tuition, housing, and living expenses.
Positive Outlook: Students Still Choose Canada
Despite these challenges, international students continue to view Canada as a top study destination. According to ApplyBoard’s survey:
“95% of international students still prefer studying in Canada due to its high academic standards, post-graduation work opportunities, and inclusive environment.”
This optimism highlights the long-term resilience of Canada’s education brand, even during policy shifts and global competition from countries like the UK, Australia, and Germany.
How Students Can Adapt
With study permits becoming more competitive, students can take strategic steps to improve their chances of approval and success:
1. Apply Early
Submit applications as soon as possible before intake deadlines to avoid processing delays.
2. Choose Recognized Institutions
Select Designated Learning Institutions (DLIs) that are compliant with the new government regulations.
3. Strengthen Financial Proof
Provide clear documentation showing the ability to pay tuition, housing, and living costs.
4. Write a Strong SOP (Statement of Purpose)
Clearly explain your study goals, course selection, and future plans in Canada to convince visa officers of your genuine intent.
5. Stay Updated on Immigration Changes
Regularly check updates from Immigration, Refugees and Citizenship Canada (IRCC) and official college websites for the latest guidelines.
Challenges Ahead for the Canadian Education Sector
Canadian colleges and universities now face a difficult balancing act — maintaining quality education and financial sustainability while adhering to government-imposed limits.
Smaller colleges, especially private institutions, may experience revenue drops, reduced staff, and declining enrolments, which could force them to merge or shut down.
Public universities, on the other hand, may rely more on domestic students and graduate-level programs to fill gaps caused by the fall in undergraduate international enrolments.
Meanwhile, provinces like Ontario, British Columbia, and Alberta, which attract the highest number of international students, will likely experience the most noticeable impact on their regional economies.
Student Perspectives
Many international students have expressed disappointment over the stricter caps, fearing they may lose opportunities to study in Canada — a country once known for its open-door policies.
“I’ve dreamed of studying in Canada for years, but now it feels like the door is closing,” said Priya Sharma, an Indian applicant waiting for her study visa decision.
Others, however, remain hopeful that Canada will stabilize its system by 2026, allowing new students to benefit from fairer, more transparent admission and visa policies.
Canada vs Other Study Destinations
| Country | 2025 Student Visa Policy | Approval Trend | Key Focus |
|---|---|---|---|
| Canada | Capped new study permits at 80,000 | ↓ Down | Immigration balance, housing |
| UK | Restricting dependents of postgraduate students | ↓ Down | Family restrictions |
| Australia | Tightened financial proof and English requirements | ↓ Down | Quality control |
| Germany | Streamlining student visa approvals | ↑ Up | Skilled migration |
| USA | Stable student visa policy | ↔ Stable | Attracting STEM talent |
This comparison shows that while many countries are tightening immigration rules, Germany and the USA are emerging as attractive alternatives due to stable or improved student visa policies.
Future of Canada’s International Education
Education experts believe that Canada’s long-term goal isn’t to close its doors, but to rebalance the system by improving quality, ensuring sustainability, and maintaining integrity in student admissions.
In the next few years, Canada may introduce targeted student visa programs prioritizing high-demand sectors like healthcare, technology, and engineering.
Such policies could help Canada maintain its global education reputation while addressing domestic challenges like housing, employment, and institutional oversight.
Conclusion
The sharp drop in Canada’s 2025 study permit approvals marks a turning point for the country’s international education system. While short-term challenges are clear reduced enrolments, financial pressure on colleges, and decreased diversity Canada remains a trusted and respected destination for global learners.
