Canadian Study Permit Applications Plummet More Than Planned

Canada has experienced a significant decline in international study permit applications, surpassing government projections. In January 2025, Immigration, Refugees and Citizenship Canada (IRCC) reported receiving only 29,300 new applications—a 46% decrease compared to the same month in the previous year. This marks the lowest number of applications for January since 2021, a period when pandemic-related restrictions were in effect.

The federal government had anticipated a 10% reduction in study permits for 2025, setting a cap at 437,000. However, the actual decline in applications has been nearly five times greater than expected. This unexpected drop is attributed to a combination of stricter immigration policies and global economic challenges affecting prospective students' decisions.

In 2024, Canada introduced several measures to manage the influx of international students. These included a two-year cap on study permits, increased financial requirements—raising the minimum proof of funds to $20,635—and the necessity for most applicants to obtain a Provincial or Territorial Attestation Letter. These changes aimed to alleviate pressure on housing, healthcare, and other public services.

The decline in applications has been particularly notable among students from India, who have historically constituted a significant portion of Canada's international student population. Reports indicate that applications from Indian students fell by 50% in September 2024 compared to the previous year. This trend reflects growing concerns over affordability, limited work opportunities, and the overall value of studying in Canada.

Educational institutions across Canada are feeling the impact of this downturn. Many universities and colleges rely heavily on international students, who typically pay higher tuition fees than domestic students. The sudden drop in applications threatens the financial stability of these institutions and may lead to program cuts or increased fees for domestic students.

As Canada continues to adjust its immigration policies, the long-term effects on its education sector and economy remain uncertain. While the measures aim to address immediate concerns, such as housing shortages and service strain, they also risk diminishing Canada's reputation as a welcoming destination for international students. Balancing these priorities will be crucial in the coming years.