Canada cuts study permits by 2025, here’s what it means for students

Canada’s approval of new permits for international students has plummeted to its lowest level in ten years, even more so than during the COVID-19 shutdown.

According to new data from ApplyBoard, Ottawa’s strict limits on post-secondary admissions are driving the decline. The platform projects that the federal government will approve only 80,000 new study permits in 2025, a 62% drop from 2024 and well below pre-pandemic levels. By comparison, Canada approved about 92,000 new permits at the height of the pandemic in 2020.

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Screenshot [ApplyBoard’s – Canada’s Student Cap Causes Greater Declines Than Pandemic]

ApplyBoard warned that the sharp drop will make 2025 “one of the most competitive years in history” for students hoping to begin their studies in Canada.

Universities are hardest hit by the cap: extensions now account for almost 80% of all study permits and fewer than 30,000 new approvals are expected for university programs nationwide. Meanwhile, universities are showing a modest recovery, with pass rates rising from 30% in May to 55% in August, but opportunities remain limited.

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The report also noted that students from India, the Philippines and several African countries face the lowest pass rates, threatening university diversity across Canada.

For the first time, students already in Canada will account for almost two-thirds of all post-secondary permits issued this year, underscoring how extensions have outpaced new approvals.

If current trends persist, ApplyBoard projects that Canada’s total international student population could decline by up to 50% in 2026, as fewer new students replace graduating cohorts.

Despite the slowdown, 95% of international students surveyed by ApplyBoard said they still aspire to study in Canada, citing its academic standards, postgraduate job opportunities and multicultural environment.

“While short-term challenges remain, student confidence in the long-term value of Canada remains remarkably strong,” the report concluded.