Canada’s International Student Cap and PGWP Changes: What You Need to Know in 2024–2026
In January 2024, Immigration, Refugees and Citizenship Canada (IRCC) introduced a two-year cap on new international student permits. The policy aimed to reduce pressure on housing and public services, but it has had serious consequences for both international students and Canadian colleges and universities.
Major Changes to the Post-Graduation Work Permit (PGWP)
One of the most significant policy shifts involved the Post-Graduation Work Permit. Under the new rules:
Most international students are no longer eligible for a PGWP after completing their programs.
Only master’s graduates remain eligible for a three-year work permit.
This has drastically reduced the ability of many graduates to remain and work in Canada after their studies—a key factor that once made Canada a top choice for students worldwide.
Impact of the Study Permit Cap
The cap was designed to reduce student permit approvals by 35%, but IRCC data shows an even steeper 48% drop, with only 267,890 new study permits issued in 2024.
Approval rates also fell sharply—from 59.8% in 2023 to 48% in 2024—meaning more than half of all applicants were denied.
As a result:
Foreign student enrolment has declined by 30% to 50%.
Canadian institutions—many financially dependent on international tuition—are experiencing program cuts and staff layoffs.
Job Losses in the Education Sector
By July 2025, over 8,500 jobs had been lost across Canadian colleges and universities.
Ontario colleges accounted for 60% of these losses.
19 out of 24 Ontario colleges reported significant staff reductions.
Looking Ahead: 2025 and 2026 Cap Extensions
In September 2024, then–immigration minister Marc Miller announced that the cap would continue into 2026. The 2025 and 2026 limits will be set at 10% below 2024 levels, signaling further declines in new student arrivals.
Combined with a tougher application process and restrictive work permit rules, these measures are discouraging potential applicants from choosing Canada as their study destination.
The Road to Recovery
Canadian institutions now face:
Reduced tuition revenue
Staffing challenges
A diminished global reputation in the education sector
The next few years will be critical for rebuilding Canada’s appeal to international students. Without targeted policy changes, the country risks losing its competitive edge to other destinations like Australia, the UK, and the US.
How Ayodele Law Can Help
Navigating Canada’s study permit process is now more challenging than ever. With lower approval rates, stricter eligibility rules, and new PGWP restrictions, having experienced legal guidance can make all the difference.
At Ayodele Law, our immigration lawyers help international students:
Prepare strong, complete study permit applications
Navigate PGWP eligibility requirements
Overcome refusals and reapply successfully
Plan long-term immigration pathways to Canada
📞 Book a consultation today to give your application the best possible chance of success.