Study permit applications to Canadian universities and colleges are heading for a 45 per cent decline, more drastic than the 35 per cent intended cap the federal government announced earlier this year. The measures Ottawa introduced were meant to rein in the runaway growth of study permit holders in the college sector.
Universities Canada, which provides university presidents with a unified voice for higher learning, research and innovation, also advocates for Canadian universities at the federal level. Its president and CEO, Gabriel Miller, sounds the alarm about declines in international enrolment.
A Statistics Canada report in 2022 said that in 2020/2021, international student enrollment declined by 4.0 per cent nationally, compared with the 11.2 per cent increase over 10 years before the pandemic.
With the closure of visa application centres and travel restrictions because of COVID-19, many prospective international students faced difficulties getting permits to study in Canada. However, as universities increased their offerings for online classes, enrolment quadrupled, and degree programs rose to their highest in online learning.
Major Impact
International students make significant contributions to Canada, both economically and culturally. The reduction in their numbers will have a major impact.
In August 2023, Immigration Minister Marc Miller announced new measures to restrict work permits to curb abuse in the international student program.
At the time, observers asked how the government would fill the funding gaps for universities without the inflow of international student fees. They were also concerned about whether the changes would affect Canada’s standing as a destination for those who study abroad. This and other concerns persist as the enrolment cap becomes a reality.
In January 2024, The Star reported on a Universities Canada memo stating that the government would fix the number of international study permits for each province. The rule change affects immigration policies, student visas, and work rights.
Investment
In a 2025 pre-budget submission, Universities Canada urged the government to invest in universities “to build a stronger Canada.” A healthy economy improves the quality of life of all Canadians.
The organization said the government should work with universities to boost Canada’s productivity, drive innovation, and enhance research efficiency. It also urged Canada to restore global educational leadership and talent attraction with a modern immigration system.
Universities Canada’s vice president of member services, Julia Scott, lamented the impact of the decline in enrollment. “The changes have been incredibly damaging to universities, and they will have ramifications for decades to come,” Scott said.
Effects on International Students
The limited enrolment will immediately affect prospective students in key countries—India, China, and the Philippines. They may have to decide to study elsewhere, such as in the U.S., the U.K., or Australia.
India Today reported that Indians comprised the largest national cohort, constituting 37 per cent of study visas issued by Canada in 2023. It said Canadian policy changes significantly impact Indian students’ enrolment, and that study permits to Indians dropped 86 per cent in the October-December quarter of 2023. The media outlet said stricter work criteria and increased scrutiny might discourage Indian applicants.
A Facebook account of an Indian media group posted the planned changes under the headline “Immigration discouraged.” The August 28, 2024, post listed the policy to reduce permanent residency nominations, the number of temporary foreign workers, and new international student permits. It also listed the policy to limit international students’ work hours to 24 per week.
The Globe and Mail reports that tens of thousands of international students who spent years finding a pathway to permanent residency are out of options and might have to return home because of the government’s shift in policy.
The paper said policy experts estimate that visas for between 70,000 and 130,000 international students with post-graduation work permits (PGWP) will expire in 2024 and 2025.
Implications for Universities
According to Statistics Canada, previous analysis has shown that universities’ reliance on tuition as a revenue source has grown and that international students, who pay substantially higher tuition than domestic students, are an important element of this growth.
For example, figures show that about 40 per cent of all tuition fees contributed to almost $4 billion in annual revenue for Canadian universities in 2018/2019.
The changes will directly affect university coffers. At Queen’s University in Kingston, Canadian students pay $7,518.59, while their international counterparts pay $56,999.69. At Fanshawe College in London, Ontario, international students pay 345 per cent more than domestic students.
The University of Manitoba president, Michael Benarroch, told Global News the cap was having a big impact on the school’s bottom line, with a potential seven-per cent decrease overall this year because of less tuition received from students — resulting in a possible $7 to $8 million hit to its budget.
Gabriel Miller, president of Universities Canada, said Ottawa needs to ensure no more restrictions are put on international university student requirements, including work permits or further changes to the cap. University Canada also wants to see the government “immediately pivot” to start a global marketing campaign to “restore Canada’s reputation” as a place for the world’s “best and brightest.”
Canada’s Standing
The 45 per cent decline in study permit applications presents significant challenges for Canadian universities financially and in terms of their reputations. With international students contributing heavily to tuition revenue and the broader economy, this sharp reduction could harm the country’s standing as a top global education destination.
Prospective students from key countries may look elsewhere for opportunities. If further restrictions continue, Canada risks losing its competitive edge in attracting international talent. This loss could weaken the country’s academic, economic, and cultural sectors. Immediate action is needed to address these concerns and restore confidence.
