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Canada

Why Did Canada Introduce Study Permit Cap? Reason Behind New Rules

Canada is capping study permits for international students to address program growth. The new limits include a 35% reduction in new visas this year.

Last updated: July 18, 2025 9:13 pm
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Key takeaways

Canada is introducing a cap on new study permits to reduce the number of international students entering the country by 35% this year.
The rapid growth of international student numbers has put strain on housing supply and created financial reliance on tuition fees.
The cap will primarily affect undergraduate students, with new visas dropping from 560,000 in 2022 to 364,000 in 2023.

Understanding the New Canada Study Permit Cap

Canada’s International Student Program has seen staggering growth over the years, with an influx of foreign nationals seeking advanced education at Canadian institutions. Traditionally, the program had no limits, allowing any student with an acceptance letter, proper identification, and proof of financial sustenance to gain entry to study in Canada. However, recent changes announced by Immigration Minister Marc Miller are set to reshape this landscape significantly.

Why Did Canada Introduce Study Permit Cap? Reason Behind New Rules
Canada is capping study permits for international students, reducing new student visas by 35% this year to address housing market strain. Ontario stands out for a surge in international enrolments. Changes include only capping undergraduate students and limiting work permits for certain programs.

What Prompted The Canada Study Permit Cap

In a candid announcement on Monday, Marc Miller communicated a new set of regulations that aim to reduce the number of new student visas by 35 percent this year. This new “Canada study permit cap” is a strategic measure to manage the burgeoning size of the program which had been anticipated to reach 900,000 individuals by 2023. He expressed concern over the program’s impact on the housing market, with this surge contributing to the inability of the housing supply to meet demand.

Miller boldly pointed out the problematic reliance of post-secondary institutions on the raised tuitions from international students, stating:

“Some institutions [are] running the diploma equivalent of ‘puppy mills’ rather than offering their students a quality education.”

The Increasing Presence of International Students

The growth in international student numbers has been notably significant. In 2022, more than 807,000 permit-holders were in Canada, showing a near 31 percent increase over 2021. Ontario, Canada’s most populous province, has harbored more than half of these students.

Financially, these students are a boon to the education sector; international undergraduate students for the academic year 2022-23 paid an average of $36,123, which is 429 percent more than domestic students. This stark contrast in tuition fees not only highlights the economic value of international students but also emphasizes the fiscal reliance of institutions on these payments.

The Changes to Canada’s International Student Program

In response to the ballooning numbers and subsequent pressures, the international student program changes will see a cap placed on new visas. Specifically, the government will authorize 364,000 new visas in 2023—a significant drop from the almost 560,000 issued the previous year. Visions for 2025 will be determined after assessing the situation later this year.

It’s important to note that this cap will focus predominantly on undergraduate students. Students aiming for master’s programs, doctoral degrees, or elementary and high school studies will not be affected. Additionally, from September 1st, students attending schools under a private-public model will no longer be eligible for postgraduate work permits.

In a move that further narrows the breadth of the program, in a few weeks, open work permits will exclusively be available to spouses of students enrolled in master’s and doctoral programs, along with those in professional programs like medicine and law.

The Impact of the Cap on International Student Enrolment

It’s worth mentioning the staggering increase in international college students which has risen by 154 percent between 2014-15 and 2019-20, while the number of international university students experienced a growth of around 40 percent over the same period. This disparity is indicative of the differing scales of international enrollment between colleges and universities in Canada.

Next Steps for Prospective International Students

For prospective students, it is now more crucial than ever to be thorough and timely with applications. Those looking to study in Canada should:

  • Ensure they have all the required documents and financial support proof ready
  • Submit applications as early as possible due to the reduced number of available permits
  • Keep updated with the latest guidelines and stipulations from Immigration, Refugees and Citizenship Canada

The international student program changes are a testament to the dynamic nature of immigration policies and the need for nations to adapt to the challenges and opportunities presented by globalization. As Canada grapples with these changes, those affected will need to navigate the new waters with caution and prepare for a more competitive landscape in seeking a Canadian education.

Learn Today:

Glossary or Definitions

  1. Canada Study Permit: A document issued by the Canadian government that allows foreign nationals to study at a designated learning institution in Canada for a specific period of time.
  2. Canada Study Permit Cap: A new regulation implemented by Immigration Minister Marc Miller that limits the number of new student visas issued each year, reducing the overall intake of international students in Canada.
  3. International Student Program: A program in Canada that facilitates the admission and enrollment of foreign nationals in Canadian educational institutions.
  4. Post-Secondary Institutions: Educational institutions such as colleges and universities that offer programs beyond high school level.
  5. Tuition Fees: The amount of money charged by educational institutions for instruction and other services provided to students.
  6. Undergraduate Students: Students who are pursuing their first bachelor’s degree at a university or college.
  7. Master’s Programs: Graduate-level programs that allow students to further specialize in a specific field of study and earn a master’s degree.
  8. Doctoral Degrees: The highest level of academic degree that can be obtained by completing a program of original research or scholarly work.
  9. Elementary and High School Studies: Education at the primary and secondary levels, typically for students between the ages of 6 and 18.
  10. Postgraduate Work Permits: Permits that allow international students who have completed a program of study in Canada to work in the country for a specified period of time.
  11. Professional Programs: Academic programs that are designed to prepare students for specific professional careers, such as medicine or law.
  12. Open Work Permits: Permits that allow foreign nationals to work in Canada for any employer without the need for a specific job offer.
  13. Enrolment: The process of registering or admitting students into an educational institution or program.
  14. Globalization: The process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, and ideas.
  15. Immigration Policies: Government regulations and laws that govern the entry, stay, and rights of foreign nationals within a country.
  16. Immigration, Refugees and Citizenship Canada: The Canadian government department responsible for immigration, refugee, and citizenship matters. They provide information, services, and resources related to immigration processes and requirements.

So there you have it, folks! The new Canada study permit cap is set to shake things up in the International Student Program. With a 35 percent reduction in new student visas, it’s now more important than ever to be proactive and well-prepared if you’re looking to study in Canada. Don’t forget to check out visaverge.com for all your immigration queries and keep yourself updated with the latest guidelines!

This Article in a Nutshell:

Canada’s new study permit cap aims to reduce student visas by 35%. The surge in international students has strained housing and raised tuition fees. The cap will primarily affect undergraduate students, while master’s, doctoral, and K-12 students are exempt. Prospective students should prepare early and stay up-to-date on immigration guidelines.

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Oliver Mercer
ByOliver Mercer
Chief Editor
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As the Chief Editor at VisaVerge.com, Oliver Mercer is instrumental in steering the website's focus on immigration, visa, and travel news. His role encompasses curating and editing content, guiding a team of writers, and ensuring factual accuracy and relevance in every article. Under Oliver's leadership, VisaVerge.com has become a go-to source for clear, comprehensive, and up-to-date information, helping readers navigate the complexities of global immigration and travel with confidence and ease.
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