97% Drop in Canada Study Permits: What You Need to Know for 2026

Recent data released by Immigration, Refugees and Citizenship Canada (IRCC) indicates a dramatic decline in new international study permits, following the introduction of Canada’s national study-permit cap and stricter financial requirements.

According to monthly IRCC figures, new international student arrivals fell by approximately 97% year-on-year. Only 2,485 new study permits were issued in November 2025, compared to over 95,000 permits issued in December 2023, just before the cap and revised policies came into effect.

IRCC has clarified that the term “new arrivals” refers to study permits issued, not physical entries into Canada. However, the overall trend remains clear:
Between January and November 2025, study-permit approvals were around 60% lower than during the same period in 2024.

Why Canada Introduced the Cap

Canadian authorities have stated that the reduction is intentional. The policy aims to:

  • Reduce the share of temporary residents to 5% of Canada’s population by 2027
  • Ease pressure on housing availability
  • Reduce strain on healthcare and public services

Impact on Canadian Institutions

The sharp decline has had a significant impact on educational institutions:

  • Many public colleges depend on international tuition for up to 40% of their operating revenue
  • Prolonged declines may result in program closures, staff layoffs, and higher domestic tuition
  • Private career colleges, already under increased scrutiny, face serious enrollment and sustainability challenges

Student Advisory: What This Means for Prospective Applicants

Despite the tightening policies, Canada is not closed to international students. However, successful applications now require stronger preparation and strategy.

Key Points Students Must Know

  • The study-permit cap will continue in 2026, with a projected 408,000 total permits
  • Master’s and PhD programs at public universities are exempt from Provincial Attestation Letters (PALs)
  • Approval chances are higher for students who have:
    • Strong and well-documented financial capacity
    • Verified Letters of Acceptance (LOA) from compliant institutions
    • Programs aligned with Canada’s labour-market shortages

Strategic Advice for Students

  • Apply early and avoid last-minute submissions
  • Choose public universities and high-quality institutions over low-value programs
  • Ensure financial documents clearly meet updated IRCC thresholds
  • Avoid weak or non-compliant colleges that may increase refusal risk
  • Consider postgraduate pathways where exemptions and long-term outcomes are stronger

Long-Term Outlook

Fewer international student arrivals today may also affect Canada’s workforce in the coming years. From 2028 onward, sectors such as retail, hospitality, and entry-level technology roles may face shortages due to a smaller pool of post-graduation work-permit holders.


Final Note from CEMEDS

Canada remains a highly regulated but achievable destination for international education. In the current environment, quality, compliance, and planning matter more than volume. Students who adapt to the new rules and make informed choices can still build successful academic and professional futures in Canada.

CEMEDS Avatar

Leave a Reply

Your email address will not be published. Required fields are marked *