Over 88,000 Fewer International Students Arrive in Canada in 2025

Canada 🇨🇦 is admitting far fewer international students this year after the federal cap on international study permits took full effect across provinces. Immigration, Refugees and Citizenship Canada (IRCC) confirms that 2025 has brought over 88,000 fewer students compared with 2023, a sharp fall that matches the government’s earlier warning that approvals would be cut. The decline in international student arrivals is the steepest in recent memory and is already reshaping campus plans, local job markets, and the finances of schools that counted on tuition from abroad.

What caused the drop?

The immediate driver is the national cap on new study permits first introduced in January 2024, set at 360,000 for that year—roughly a 45% reduction in approvals from 2023. The cap remains in place for 2025, with provinces receiving fixed shares based on population and institutional capacity.

IRCC and the immigration minister say this policy aims to “pause population growth” and protect housing and services strained by recent surges, especially in major cities. Provinces have responded by enforcing stricter screening on which programs can sponsor students and how many letters of acceptance they issue.

Key policy numbers and targets

• National cap on new study permits: 360,000 for 2024, continued into 2025.
• IRCC mid‑2025 result: more than 88,000 fewer new international student arrivals than in 2023.
• Federal target: reduce the temporary resident population to 5% of Canada’s population by end‑2026.
• Ottawa’s 2025 target for new temporary resident arrivals: 673,650.
• 2025 provincial nominee program (PNP) allocations: halved overall (e.g., British Columbia’s quota from 8,000 to 4,000).
• PGWP eligibility tightened (November 2024): focus on eligible public institutions and priority sectors like healthcare and STEM.
• PGWP application deadline: file within 180 days of graduation.
• Spousal open work permits: largely limited to spouses of graduate‑level students in selected programs.

Important: Under the cap, if a province exhausts its allocation, it stops issuing new approvals for that year. Timing and provincial allocations therefore matter for applicants.

Policy rationale and government stance

The federal government frames the changes as necessary to stabilize housing and public services. Measures started in 2024 and continued into 2025 as part of the broader 2025–2027 Immigration Levels Plan. The aim is to lower temporary resident inflows while prioritizing in‑Canada transitions and targeted pathways for in‑demand sectors.

Provinces and institutions, however, warn of revenue losses and service disruptions. University leaders, mayors, and provincial governments have lobbied for targeted relief, but the federal stance is firm: the cap stands until housing and infrastructure pressures ease.

Who is affected and how

• Students: Increased competition for offers, stricter financial proof, and greater emphasis on program and institution type (for PGWP eligibility). Spousal work rights are more limited, especially outside graduate‑level programs. Missing the 180‑day PGWP filing window can undermine post‑study plans.
• Institutions: Reduced predictable tuition revenue has forced some to delay new programs, reassess partnerships, or consider program cuts and mergers—particularly smaller colleges and institutions that expanded rapidly in the pre‑cap boom.
• Local economies: Less demand for housing and fewer part‑time student workers affect landlords, restaurants, retailers, and transit systems that had adapted to larger student cohorts.
• Employers: Retail, hospitality, and caregiving sectors face scheduling and staffing challenges with fewer student workers available.

Examples of institutional and provincial impacts

• Ontario and British Columbia: Warned that limits will cut revenue for public universities and may force smaller colleges to merge or close programs.
• British Columbia: PNP quota dropped from 8,000 to 4,000, reducing a pathway many graduates used to seek permanent residence.
• Institutions that expanded during the pre‑cap boom: Retracting plans, delaying programs, reassessing international partnerships (analysis by VisaVerge.com).

Regulatory tightening: PGWP and spousal work permits

• PGWP: Now focused on graduates of eligible public institutions and programs tied to priority sectors (healthcare, STEM). Many private college graduates no longer qualify.
• Filing window: PGWP applications must be submitted within 180 days of graduation proof.
• Spousal open work permits: Generally limited to spouses of graduate‑level students in selected programs, reducing appeal for families where both partners intended to work.

Process and practical steps for 2025 applicants

Study permit and PGWP processes are stricter but manageable with planning:

1. Confirm the DLI and program qualify for PGWP before paying deposits.
2. Prepare stronger financial documentation—IRCC enforces tighter checks.
3. Track your province’s allocation status through your institution’s international office.
4. If bringing a spouse, verify whether your program level qualifies their open work permit under 2025 rules.
5. Allow extra time for document requests and possible provincial allocation delays.
6. For recent graduates, note the 180‑day PGWP filing deadline and gather proof of completion early.

Institutions are responding by:
– Publishing clearer program lists that indicate PGWP eligibility.
– Offering tuition deferrals or transfer options when program eligibility changes.
– Communicating proactively with incoming students about provincial allocations and documentation requirements.

Broader immigration context and outlook

• 2025 permanent resident target: 395,000, lower than previous ambitions (e.g., the earlier 500,000 goal).
• CIC News (July 2025): Over 40% of permanent resident admissions in 2025 will be people already inside Canada.
• Migration Policy Institute (June 2025): The cap and related measures constitute the most extensive pullback in decades.
• IBANet (May 2025): Calls the shift “profound” and urges practitioners to stay current as rules evolve.

IRCC has signaled that if housing and infrastructure pressures persist, further reductions or tighter rules could appear in 2026. Small pilot programs and targeted pathways for in‑demand sectors may be developed, but these will be selective.

Ripple effects and community impacts

• Cities that built services around large international cohorts will need to adjust service planning and budgets.
• Landlords who depended on student demand may encounter a different rental market.
• Employers will reassess staffing models that relied on part‑time student workers.
• Schools will make tough budget decisions if international tuition does not rebound.

Despite the pullback, Canada remains a competitive study destination for many. Public universities with strong programs continue to attract applicants who can meet the new standards. Those who plan early, choose PGWP‑eligible programs, and meet stricter financial checks still have viable study and early work pathways.

Key takeaway: The era of rapid growth in international student arrivals has ended for now. The system is smaller and more selective, aligned with federal goals to manage population growth and reduce pressure on housing and services.

For official information on current rules, eligibility, and application steps, see IRCC — Immigration, Refugees and Citizenship Canada. Within Canada, the IRCC Client Support Centre is available at 1‑888‑242‑2100.

If you’re planning to apply or are advising students, institutions suggest: verify program and DLI eligibility, confirm provincial allocation status early, and document finances more thoroughly to avoid surprises.