Canada’s post-secondary institutions are feeling the impact of a sharp drop in international student numbers, as shown by recent data and echoed by administrators, student leaders and experts.
From 2023 to 2025, study permit applications have fallen dramatically – and approvals have dropped even further. This shift has resulted in fewer course offerings, crowded classrooms, limited services, and research delays across the country.
On This Page You Will Find
- Recent data on study permit approvals and applications
- Impacts on courses, student services, and waitlists
- Effects on domestic students and enrolment capacity
- Implications for Canadian research and reputation
- Calls for policy change and funding reform
Study Permit Numbers Plummet
According to new data, Canada’s study permit applications from international students peaked in 2022 but have fallen sharply since.
- In 2022, over 300,000 applications were received in some quarters.
- By 2025, quarterly applications have dropped to under 100,000.
- Approvals have declined even more steeply, indicating a tightened immigration policy environment.
The approval rate has dipped visibly in recent quarters, highlighting a shift in the federal government’s approach to controlling international student inflows.
Course Cuts and Waitlists
The financial toll is already visible. Universities are cutting elective courses, increasing class sizes, and in some cases, deferring required courses.
Students like Daniella Iyaomolere, a digital marketing student at the University of Regina, are waitlisted for mandatory courses. She and over 20 peers are unable to register for a prerequisite class needed for the next term.
In British Columbia, Capilano University student Vansh Kalra reports a drop in course availability, forcing some students to enrol in multiple institutions or delay graduation.
Budget Crunch and Service Reductions
With fewer international students, who typically pay significantly higher tuition fees, universities are losing major revenue streams.
Gabriel Miller, president of Universities Canada, says institutions are trimming everything from course offerings to mental health services. This budget pressure is compounded by provincial tuition freezes and rising domestic enrolment.
For example, Ontario universities expect record numbers of domestic first-year students in 2025, but with no corresponding funding increase, institutions face the paradox of growing student populations and shrinking budgets.
Strain on Canadian Students and Faculty
Faculty leaders like Rob Kristofferson, president of the Ontario Confederation of University and Faculty Associations, warn of deteriorating academic quality. Larger class sizes, fewer electives, and reduced support staff are straining both faculty and students.
In some cases, students are forced to take extra semesters or travel to other schools to complete their programs, adding time and financial strain.
Decline in Research Capacity
The decline in graduate student permits is also weakening research output. Daniel Jutras, rector of the Université de Montréal and chair of U15 Canada, says Canada’s top research universities are losing top international talent due to delays and uncertainty.
This is especially critical as Canada competes globally for innovation and research capacity. Jutras warns that international students are key contributors to post-secondary research – losing them compromises the country’s ambitions as a knowledge-based economy.
Federal Government Defends Cap
Immigration, Refugees and Citizenship Canada (IRCC) argues that the student cap is necessary to ensure sustainable growth. A spokesperson for Minister Lena Diab stated that recent declines in application volumes prove the policy is working.
But critics argue the changes were abrupt and poorly coordinated, leaving institutions without time to adjust and causing reputational damage for Canada as a study destination.
The Road Ahead
Stakeholders like Universities Canada and ApplyBoard are urging better collaboration across all levels of government and the education sector to stabilise the system. Meti Basiri, co-founder of ApplyBoard, stresses the importance of international students as ideal future Canadians – educated, integrated, and skilled.
Gabriel Miller warns that failing to manage this transition smartly will harm not only universities but the Canadian economy. A sustainable balance, not blanket cuts, is what’s needed to preserve both educational quality and economic benefit.
FAQ
Why are international student numbers dropping in Canada?
The federal government introduced a cap on international students and tightened permit approvals to address housing and support service issues. This has significantly reduced the number of applications and approvals.
How does this impact Canadian universities?
Universities are seeing lower revenues due to the loss of international tuition. This has led to fewer courses, larger class sizes, cuts to student services, and less research activity.
Are domestic students affected by this?
Yes. Despite an increase in domestic student enrolment, universities cannot offer more services or courses due to funding shortfalls. This reduces the quality of education for all students.
What is the government saying about the changes?
The government says the changes are necessary to ensure sustainability and proper support for students. They cite falling permit numbers as evidence that the cap is working.
What are experts recommending?
Experts are calling for a more balanced approach that protects Canada’s reputation, supports students, and ensures universities can remain financially stable and globally competitive.
