Canada’s approval of new international student permits has dropped to its lowest level in more than a decade, marking a major shift in the country’s once-booming education sector. Surprisingly, this decline is even steeper than the downturn experienced during the COVID-19 pandemic, when global travel restrictions and uncertainty had temporarily slowed student mobility.
According to a new report by ApplyBoard, one of the world’s leading international education platforms, this decline is largely the result of Ottawa’s strict caps on post-secondary student intakes. The federal government introduced these measures to control the rapid growth in international student numbers, citing concerns over housing shortages and the strain on public services. However, the new rules are now having a serious impact on colleges and universities across Canada.
ApplyBoard’s data shows that the government is projected to approve only 80,000 new study permits in 2025, which represents a massive 62% decrease compared to 2024. To understand how significant this drop is, it’s worth noting that even during the height of the pandemic in 2020, Canada approved around 92,000 new permits. This means that next year’s approvals could fall to the lowest level seen in the last ten years, including one of the most challenging global periods for education.
The report warns that 2025 will likely be one of the most competitive years ever for students hoping to study in Canada. Thousands of aspiring students from around the world may find it much harder to secure admission and study permits. The hardest hit will be colleges, where the number of new study permits has dropped drastically. Currently, extensions or renewals make up almost 80% of all study permits, meaning that fewer than 30,000 new students are expected to be admitted into Canadian colleges nationwide.
This sharp decline is already creating ripple effects across the education sector. Many smaller colleges and private institutions, which depend heavily on international students for revenue, are struggling to maintain operations. Some institutions are now cutting back on new programs or staff, while others are offering more online courses to attract overseas learners who are unable to secure visas.
Universities, on the other hand, appear to be faring slightly better. The approval rate for university applicants rose from 30% in May 2024 to about 55% in August 2024, showing modest signs of recovery. Yet, despite the improvement, the number of new admissions remains well below the demand. Universities are also expressing concern about losing diversity on campuses, as students from India, the Philippines, Nigeria, Kenya, and other African nations are facing the lowest approval rates. These countries have traditionally been key contributors to Canada’s multicultural academic environment.
For the first time in Canadian history, the majority of study permits being issued are extensions rather than new approvals. ApplyBoard’s data suggests that almost two-thirds of all post-secondary permits in 2025 will go to students who are already in Canada. This shift highlights how government restrictions are favoring students who are continuing their education over those who are just beginning their academic journey in the country.
If the current pattern continues, ApplyBoard predicts a sharp decline—up to 50%—in Canada’s total international student population by 2026. As fewer new students arrive to replace those graduating or returning home, the overall number of international learners will drop significantly. Such a reduction could have major economic consequences, as international students contribute over $22 billion annually to Canada’s economy through tuition fees, housing, and daily spending. The loss of this income would affect not only educational institutions but also local businesses and communities that rely on student populations.
Despite the grim outlook, international student interest in Canada remains incredibly strong. ApplyBoard’s survey revealed that 95% of students still dream of studying in Canada, even with the current challenges. Their main reasons include the country’s high-quality education, safe and inclusive society, post-graduation work opportunities, and pathways to permanent residency. Canada has long been seen as one of the best places in the world for international students, and that image remains powerful.
Education experts believe that these challenges, while serious, are temporary. Many expect that once the federal government reassesses its cap policies and finds a better balance between housing supply and student demand, approval numbers will begin to recover. Some provinces and universities are also lobbying for more flexible policies that would allow them to admit additional international students, particularly in regions where housing and infrastructure can support them.
In the meantime, institutions are working to improve support for existing students, offering better on-campus housing, part-time work opportunities, and academic resources. The goal is to maintain Canada’s reputation as a welcoming, world-class destination for education — even during a period of tightening regulations.
While 2025 may be one of the toughest years yet for new applicants, the long-term outlook for studying in Canada remains hopeful. International students continue to view the country as a place where they can gain not only a strong education but also valuable life experience and opportunities for the future. As Canada works to stabilize its system, the resilience and determination of students worldwide show that the dream of studying in Canada is far from fading — it’s simply entering a new chapter.
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