Canada Sees Sharp Decline in International Student Arrivals in 2025

(CANADA) Canada’s federal data show a steep drop in international student arrivals in early 2025, as new rules rolled out by Immigration, Refugees and Citizenship Canada (IRCC) took full effect. From January through June, Canada approved study permits for 36,417 new students, down from 125,034 in the same period of 2024—an overall decline of 71%.

IRCC officials say the fall is the direct result of policy changes aimed at slowing temporary resident growth and easing pressure on housing, healthcare, and other services. The federal department has also moved to curb fraud and low‑quality programs that left students with debt and few work options.

IRCC has set a 2025 study permit cap of 437,000, a further 10% cut from the 2024 cap of 485,000. The cap, combined with tighter rules around financial readiness, work rights, and post‑graduation options, has lowered approval volumes and changed the profile of newcomers.

While student approvals dropped sharply, IRCC data show work permit holders accounted for 80% of new arrivals between February and June 2025, up from 70% a year earlier—highlighting a broader shift within temporary migration.

Minister Marc Miller has argued the government must align both temporary and permanent immigration levels with “community capacity,” pointing to stretched housing supply and local services. IRCC’s stated goal is to bring the temporary population to below 5% of the total population, while improving program integrity. According to analysis by VisaVerge.com, the scale and speed of these moves amount to the toughest reset of Canada’s international student policy in decades, with ripple effects for students, schools, and employers.

Data snapshot for 2025

The slowdown is visible month by month. IRCC figures show the following study permit issuances in 2025:

• January: 11,235
• February: 4,082
• March: 3,819
• April: 8,543
• May: 4,553
• June: 4,185

Across all categories, Canada recorded 214,520 fewer arrivals (students and workers combined) from January to June 2025 compared with the same period in 2024—a 57% drop. IRCC attributes the trend to the cap, stricter documentation rules, and higher financial thresholds that limit who can qualify.

This change marks a sharp break from 2018–2023, when campuses expanded fast, provinces faced tight housing markets, and many colleges relied heavily on international tuition. Universities and colleges warn the downturn will hit program budgets, campus services, and local businesses that depend on student spending.

Many institutions, especially public colleges that scaled up international enrollment in recent years, are now revising their fall and winter intake plans. Leaders in higher education say graduate programs and research activity could face shortfalls unless provinces and Ottawa adjust allocations or offer targeted paths for advanced degree candidates.

Policy changes overview

A cluster of policy changes in 2024–2025 reshaped the study route:

• Annual cap on study permits: Launched in 2024 and trimmed again in 2025, with the cap set at 437,000 in 2025.
• Provincial or Territorial Attestation Letter (PAL/TAL): Now mandatory for most applicants, including master’s and doctoral students and most in‑Canada applicants. Provinces control allocations; the PAL/TAL has become a gatekeeper for offers.
• Higher proof of funds: The minimum living expense requirement for 2025 applicants is $20,645, up from $10,000.
• Work rights during studies: From November 2024, international students may work up to 24 hours per week off campus during academic sessions. Full‑time work remains allowed during scheduled breaks if program rules permit.
• Post‑Graduation Work Permit (PGWP): From September 1, 2024, students in programs delivered through curriculum licensing arrangements are not eligible for PGWP.
• Spousal open work permits: Now limited to spouses of master’s and doctoral students—spouses of undergraduate and college students are no longer eligible.
• DLI compliance and oversight: Designated Learning Institutions face stricter reporting duties. Institutions that fail to meet rules can be barred from enrolling new international students for up to a year.

IRCC says these steps are designed to bring temporary resident numbers to stable levels and protect students from “diploma mills” and predatory recruitment. Student groups counter that higher costs and tighter work rules will push Canada down the list of preferred study destinations.

How the PAL/TAL affects admissions

The PAL/TAL system has added a new layer to admissions. Provinces allocate letters according to their capacity and goals, then DLIs coordinate with applicants. Consequences include:

• Some schools have exhausted allocations for certain intakes, leading to deferrals.
• Provinces are being urged to prioritize graduate research fields and critical skills programs.
• The extra step has introduced varied timelines across provinces and uneven backlogs.

Impact on applicants and institutions

For many prospective students, the process is now more selective and more expensive. The higher $20,645 living expense requirement raises the bar for entry, especially for those without family support. Applicants must also secure a PAL/TAL before submitting their study permit package, which has introduced varied timelines across provinces.

Current students face fresh limits as well:

• The 24‑hour weekly cap during academic sessions replaces temporary measures that once allowed more hours.
• Students in curriculum‑licensing programs can no longer count on a PGWP, affecting future work plans and permanent residence hopes.
• IRCC clarified that students who plan to switch institutions must apply for a new study permit before transferring.

Practical steps for 2025 applicants:

1. Secure admission to a DLI and confirm the program’s PGWP eligibility.
2. Obtain your PAL/TAL from the province or territory linked to your school.
3. Prepare proof of funds meeting the $20,645 threshold (plus tuition and travel).
4. File the outside‑Canada application using form IMM 1294 (Application for Study Permit Made Outside Canada) https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-study-permit-outside-canada.html.
5. If you are in Canada and must get a new study permit (for example, before switching schools), use IMM 5709 (Application to Change Conditions, Extend my Stay as a Student) https://www.canada.ca/en/immigration-refugees-citizenship/services/application/application-forms-guides/application-change-conditions-extend-your-stay-student.html.
6. Track updates and processing guidance on IRCC’s website https://www.canada.ca/en/immigration-refugees-citizenship.html.

Colleges and universities are bracing for budget gaps. Many public colleges expanded seats for overseas learners during years of domestic tuition freezes. With fewer international student arrivals, several programs could be downsized or paused. Institutions say they are re‑evaluating marketing plans and recruitment partnerships, especially where curriculum licensing made up a large share of enrollment.

Campus housing offices report less pressure, but local landlords and businesses near big campuses note fewer rental applications and a drop in part‑time job seekers.

Community and labour market effects

At the community level, the drop in student numbers may ease demand on crowded rental markets. City officials in high‑growth regions have pushed for relief as schools grew faster than local housing supply.

Employers warn that fewer students could tighten the labour pool in:

• Food service
• Retail
• Care work
• Campus support roles

Some chambers of commerce argue for targeted allowances for industries with acute shortages.

Advocates for students say many families will struggle with the new financial requirement and the reduced work hours. They point out that earnings from part‑time jobs often cover groceries and transit, and that fewer PGWP‑eligible programs will narrow paths to Canadian work experience and permanent residence.

Several groups are urging IRCC and provinces to carve out more room for graduate research fields, where students are generally older, often funded, and more likely to fill advanced skill gaps.

IRCC maintains the changes are necessary to restore trust in the system. Officials argue that clear proof‑of‑funds rules help students avoid hardship and that stricter oversight will curb low‑quality providers. Ottawa has also indicated that future levels plans for 2025–2027 will keep temporary resident numbers in check, with more adjustments possible as the department reviews the International Student Program and provincial allocations.

“International student arrivals are down sharply,” and the new rules are reshaping who comes to study in Canada, where they enroll, and what happens after graduation.

Practical realities and next steps

Behind the numbers is the human side: students weighing offers from multiple countries, parents re‑calculating budgets, and school advisors fielding anxious questions about timing and permits.

A student accepted to a two‑year college diploma now must:

• Check PGWP eligibility carefully.
• Confirm a PAL/TAL is available.
• Plan for living costs that can exceed $20,645 in many cities once rent and food are added.
• Note that spouses may no longer qualify for open work permits unless the student is enrolled in a master’s or PhD program.

Provinces are moving at different speeds to issue PALs/TALs, creating uneven backlogs. Some have prioritized public universities and high‑demand fields, while others are reviewing private partnerships more closely.

Designated Learning Institutions that fail new reporting rules risk temporary suspension from taking new international students—a step Ottawa says is needed to lift standards and protect applicants.

Employers and settlement groups are watching closely. A smaller pipeline of graduates with PGWPs could worsen shortages in certain regions, while some metros may see a short‑term easing of rents. The federal government says it is weighing both sides.

For now, the data confirm a reset: international student arrivals are down sharply, and the new rules are reshaping who comes to study in Canada, where they enroll, and what happens after graduation.