From Rapid Growth to Recalibration: Canada’s Recent Approach to International Education

In the eyes of prospective students – and local educators – the past few years in Canada have seen a significant shift in international student policies, with a post-Covid explosion in inbound students quickly followed by a new set of policies aimed at recalibrating student flows to arrive at a more sustainable model.

To give some context on the changes, Canada saw its number of new study permits fall last year by a factor of nearly six compared to 2023. This contraction, however, reflects deliberate government intervention, rather than a loss of underlying student demand. 

Measures introduced since 2024 have tightened eligibility requirements, increased mandatory financial thresholds, and heightened government control over student intake – resulting in a system that is more selective, and in some cases more constrained, than originally anticipated. 

At the same time, recent policy adjustments signal that Canada remains open to international students, though within a more carefully defined framework. And the Canadian factors that resonated with students in 2023 – including strong universities, a broad embrace of multiculturalism, and a robust economy – still hold true today. 

From Belinda Wong, the CEO of Starbucks China, to Margaret Chan, former Director-General of the World Health Organization, to Juggun Kazim, a famous actress in Pakistan, international graduates of Canadian universities have a large footprint around the world. We expect this trend to continue in 2026 and beyond.

In early 2024, Canada introduced a cap on new international student permits, aiming to reduce annual approvals by roughly 40%. The federal government also raised the amount of money students must show to qualify for a study permit.

To further refine a system that saw explosive – and ultimately unsustainable – growth from 2021 to 2023, the government also exercised more control over which schools and programs could enroll international students.

While the changes met the government's goal of reducing the international student population, the overall volumes fell short of the desired intake. Last year, Canada approved about 75,000 new study permits, down 64% from 2024, and the lowest total in a decade, according to figures from Immigration, Refugees and Citizenship Canada (IRCC). (In 2023, Canada issued 435,000 new student permits.)

Notably, the 64% year-over-year drop in study permits in 2025 – attributable to international student caps that didn’t intend to create such a decline – was larger than the 57% drop in 2020 caused by the Covid-19 pandemic.

These cuts were also felt most acutely by provinces like Newfoundland, Saskatchewan, and Alberta – all of which expected to see modest gains in the number of inbound students, not decreases of 50% or more, as they experienced.

Lastly, students are also seeing a rise in study permit refusal rates, which have risen from 42% in 2021 to 64% in 2025. Students in India, to use one striking example, saw refusal rates rise from 31% to 74% over that same period, as the Canadian government raised the threshold for new applicants.

Despite all of the policy shifts noted above, Canada’s plan for 2026 allows for up to 408,000 study permits, including 155,000 for new students and 253,000 for extensions and returning international students. 

If Canada indeed meets its goal of 155,000 new students in 2026, this would represent year-over-year growth of 50%, showing that the country is not interested in cutting the sector even further, especially at the university level.

Since late last year, these caps do not apply to graduate-level students in Master’s or PhD students, as the schools that enroll these students are no longer required to issue a Provincial Attestation Letter (PAL), a core requirement of the cap regime. This graduate-student exemption is meant to speed processing and attract higher-skilled applicants. 

Another promising shift? As of this spring, international students no longer need a separate co-op work permit for work placements that are part of their post-secondary program. This is a much more student-friendly policy, as students no longer have to apply for a separate co-op work permit.

These policy measures serve as a signal to global students that Canada remains a top destination. It’s also worth highlighting why Canada holds so much appeal – and the proud history behind its embrace of global migrants.

It’s no accident that, today, more than 20% of Canadians are foreign born. And while Canada has two official languages (English and French), more than 200 languages were reported in the latest census as a home language or mother tongue. This remarkable diversity reflects both cultural norms and thoughtful government policies.

To give one example: The 1988 Canadian Multiculturalism Act recognized multiculturalism as a defining characteristic of Canadian identity. The Act encourages the government to support initiatives that foster intercultural understanding and respect. International education provides a rich environment to embody and embolden these Canadian values.

In addition to this tradition of multiculturalism, today’s international students are also drawn to Canadian universities because of the quality of education, co-op and internship opportunities, and robust post-graduation work pathways. 

Affordability matters too: tuition and living costs are often more manageable than in some other major study destinations, especially compared with the U.S. and U.K. Canada also has a strong public reputation for safety, political steadiness, and the provision of robust public services. All of these traits combine to maintain Canada’s relevance to today’s international students, despite the recent implementation of study permit caps.

While the recent policy shifts have placed a ceiling on the raw volume of inbound students, at least for the next few years, it has recalibrated Canada’s position as a leading destination for the world’s most talented students seeking a high-value education.