Canada’s International Student Numbers Plummet Amid Sweeping Immigration Reforms
Canada has admitted less than one-third of its annual target number of international students over the first eight months of 2025—a sharp indicator of the government’s recent efforts to curb temporary immigration. From January through August 2025, only 89,430 new study permits were issued, representing just 29% of the federal target of 305,900. This marks a 70% decline from the same period in 2024, when the government issued over 220,000 study permits.
This dramatic drop follows a series of federal policy changes throughout 2024 and 2025 aimed at reducing pressure on housing, healthcare, and other social services, while bringing temporary residents down to less than 5% of Canada’s population by the end of 2026. The international student program has been a key focus of these reforms.
Policy Changes Impacting International Students
The federal government has introduced several significant restrictions affecting international students and their families, including:
A national cap on study permit applications, limiting the total number of new students Canada will admit.
Elimination of Post-Graduation Work Permit (PGWP) eligibility for graduates of programs offered through curriculum licensing agreements.
New language testing requirements for PGWP eligibility.
Restrictions on spousal open work permits, now limited to spouses of doctoral students, master’s students in programs of 16 months or longer, and students in select professional programs.
In October 2024, the government also included temporary resident targets in its annual Immigration Levels Plan (2025–2027) for the first time, signaling a more comprehensive strategy to control non-permanent immigration.
New Federal Budget Further Tightens Study Permit Targets
The 2025 federal budget, the first under Prime Minister Mark Carney, continues this trend. It cuts international study permit allocations by 49% for 2026, reducing the target from 305,900 in 2025 to 155,000 in 2026, and further down to 150,000 annually in both 2027 and 2028.
These reductions are expected to have devastating financial implications for Canadian universities and colleges. Many institutions have relied heavily on international student tuition to offset declining provincial funding and domestic enrollment. Some schools were already facing financial crises before these latest changes.
Balancing Sustainability and Economic Needs
The government argues that these measures are necessary to ensure “sustainable growth” by reducing pressure on the housing market, healthcare, and schools. At the same time, the new budget also seeks to stabilize permanent resident admissions at 380,000 per year—slightly below the 2025 target of 395,000—while increasing economic-class immigration to better match labour market needs.
Finally, Budget 2025 allocates $97 million over five years to establish a Foreign Credential Recognition Action Fund, acknowledging that over half of skilled immigrants are overqualified for their jobs. Improving credential recognition is viewed as key to addressing ongoing healthcare and labour shortages.
For students, families, and institutions, these policy shifts mark a turning point in Canada’s approach to international education and immigration—one that prioritizes sustainability and economic alignment over expansion.