The New Era of Canadian Study Permits: Impacts and Challenges for International Students

Canada enjoys the reputation of being one of the top destinations for international students, offering world-class education, diverse cultural experiences, and thereafter enhancing eligibility of the international students for permanent residency.

However, recent efforts of the Canadian Government to address housing shortages, healthcare pressures have led to sweeping changes to the Canadian study permit program. These changes in study permit rules have made an extensive impact on international students planning to study in Canada.

Financial Capacity Requirements: A Higher Bar for Students

To adjust the financial capacity in line with rising cost of living, Immigration, Refugees, and Citizenship Canada (IRCC) raised the minimum proof of financial support from CAD 10,000 to CAD 20,635 for single applicants, excluding tuition fees for provinces other than Quebec. For students applying to study in Quebec, the requirement has been raised to CAD 15,078. For minor students, lower threshold has been fixed.

This change in the limits, which are almost double of previous requirements, is going to cause hardship to many students.

This change in financial requirements is going to deter many international students and make studying in Canada less attractive.

Further the documentation requirements to support the financial capacity as bank statements or other liquid assets to prove the financial capacity to fund the education costs has been made more stringent.

 While this would ensure that only the students who are equipped to fund their education costs, this would deter the students who were relying on doing extra working hours often beyond the permissible limit of working hours.  

 Study Permit Caps- Limiting number of students willing to study in Canada

Post introduction of cap on study permits in 2024 by Canada, total study permits issued in 2024 reduced by 35% as compared with 2023. In 2025 the cap as fixed at 437,000 is further lower by 10% as compared to target of 485,000 in 2024. This cap extends to master’s and doctoral students, who were previously exempt, and requires most applicants to submit a Provincial or Territorial Attestation Letter.

 How Study Permit Cap will Impact Students headed for Canada

1. Students would now be forced to apply earlier and ensure that applications are complete in all aspects and even standout among other applications to minimize chances of rejections. Admissions in reputed universities in provinces like Ontario and British Columbia would be impacted as there is significant reductions in allocations of permits in these provinces.
2. The reduction in allocation of study permits in major provinces of Canada will force students to choose other lesser affected provinces, which have been lesser preferred provinces also so far, as Alberta or Manitoba, where permit approvals would be more accessible.
3. Extending the cap on master’s and doctoral students is likely to affect the research and other sectors requiring specialized skill sets where these students had been contributing a lot after their education.

Greater emphasis on justifying Gap in Studies/ Educational Breaks

While officially there is no official age limit for obtaining a study permit, large gaps in study or education breaks can lead to rejection of study permit application. The gaps in studies would now raise concerns about the applicant’s intent to study. Common reasons for study gaps, such as financial constraints, family responsibilities, medical issues, or career development, are generally accepted if well-documented.

Visa officers would now be placing greater emphasis on justification of study gaps. Applicants must provide detailed explanations or supporting documents, to demonstrate that their intent is to pursue genuine academic goals.

However, impact of this change is yet to be seen since Canada’s flexible policies continue to allow such students to apply, provided they meet other criteria.

Gap in Study, higher age of students would be posing greater challenge

Canada has no formal policy of refusing study permit based on study gap and age of the study permit applicants. However, after the recent changes, older applicants are likely to be under lens to ensure their primary intent is to study rather than to work or use study as route to facilitate immigration to which they may not be eligible otherwise.

To ensure this, Visa officers questioning the motives of older applicants, particularly those with significant study gaps are likely to face higher rejection rate. However, this reduction in Cap on Study permits is not likely to have major impact on applicants for Post-Graduation Work Permit which has  no age restrictions.

Elimination of Border Pass Practice

Till recently, international students could apply for study permits at any Canadian port of entry. The students already in Canada on any visa could go to USA and enter again in Canada and applyfor study permit. This practice was known as “flagpoling.”

The study permits applicants would now have to applications and extensions online, increasing processing times as against earlier practice of submitting same at border services where the results were mostly known on same day.

Further, the termination of the Student Direct Stream, which offered 20-day processing for countries like India and China, though has leveled the playing field but has extended wait times for applicants from these countries.

Students on maintained status (awaiting permit extensions) would now lose their ability to study if they leave Canada and return before approval, complicating their travel plans.

New Study permit norms in Canada aligned with Labor Market Needs

As per new Post-Graduation Work Permit (PGWP) program rules, effective November 1, 2024, applicants must meet minimum language proficiency requirements (CLB 7 for university graduates, CLB 5 for college graduates) and, in some cases, field-of-study restrictions to qualify would apply.

The students for Post Graduate Work Permit would now choose fields of study that align with high labor market demand, such as healthcare, technology, and skilled trades so that the students have increased chances of securing employment post qualification. Students in programs not linked to in-demand occupations may face difficulties obtaining a PGWP, limiting their post-graduation work options.

 Spousal open work permits are now restricted to partners of master’s, doctoral, or professional program students where the master’s program is shorter than 16 months. This change would deter the students who would need to part finance their education and living costs on spouse income to apply for study permit in Canada.

Changes in Working Hours- would partly help offset burden due to higher financial requirements and help balancing Study and Work

As of September 2024, the allowable work hours have been increased from 20 to 24 hours per week during academic sessions, with full-time work permitted during scheduled breaks.

The additional four hours per week would provide students with more income to cover living expenses, particularly in light of the higher financial requirements.

High-paying part-time jobs, such as tutoring or retail, remain accessible, and these jobs would help students offset costs while gaining Canadian work experience.

Other Emerging Issues affecting International students headed for Canada

Several additional factors have emerged as challenges for international students under the new study permit regime:

Stricter Compliance for Designated Learning Institutions (DLIs): Starting November 2024, DLIs must participate in student compliance reporting and letter of acceptance verification. Non-compliant institutions risk suspension, potentially leaving students unable to enroll.

Trusted Institutions Framework: The IRCC is introducing a tiered system for DLIs, prioritizing “Trusted Institutions” for streamlined visa processing. Students applying to these institutions may face fewer hurdles, while others could encounter delays. This step would be very helpful to curb menace of fake universities in Canada that dupe gullible students.

Housing and Healthcare Pressures: Primary driving factor to introduce changes in Canada Study permits was to alleviate strain on housing and healthcare systems. The prices of real estate had risen sharply thereby making it beyond the reach of native Canadians. After current changes in study permit rules, the pressure on housing is expected to ease though still students in urban centers like Toronto and Vancouver may still struggle to find affordable accommodation.

 Revised study permit rules are also expected to crack down heavily on rampant use of fraudulent letters of acceptance and unauthorized work being done by many students under study permits. Students must ensure their DLIs are reputable to avoid scams and visa rejections.

Changing Schools now is More Difficult–

As of May 2025, most international students wishing to transfer to another DLI must obtain a new study permit before changing schools. Previously, students could simply update their institution information online.

 The amended Canadian study permit rules reflect Canada’s commitment to balancing its role as a global education hub with domestic pressures on housing, healthcare and controlling the quality of students.  While the increased financial requirements, study permit caps, and stricter visa rules present challenges, they also aim to ensure a sustainable and high-quality experience for international students

About Post Author

Terry

Terry, a writer and immigration expert with 10+ years as a content creator and advocate, helps newcomers navigate Canada’s system. Collaborating with consultants and agencies, Terry decodes PR risks and job challenges in trusted blogs. A storyteller and maple syrup fan, Terry authored a popular guide for new Canadians.

See author's posts