Canada PM Justin Trudeau announces 35% slash in study permits: How the new regulation will impact international students

On September 18, the Prime Minister of Canada, Justin Trudeau , announced plans to reduce student permit visas by 35% in 2024 and implement stricter regulations for foreign workers. This initiative is part of a broader strategy aimed at managing the country's rapidly growing population of temporary residents, reports AFP.

Trudeau announced the decision on his official X (formally Twitter) account. “We’re granting 35% fewer international student permits this year. And next year, that number’s going down by another 10%. Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down,” reads his post.

We’re granting 35% fewer international student permits this year. And next year, that number’s going down by another 10%.

Immigration is an advantage for our economy — but when bad actors abuse the system and take advantage of students, we crack down.

— Justin Trudeau (@JustinTrudeau) September 18, 2024

According to media reports, the Canadian government plans to issue 4,37,000 study permits to international students in 2025, a significant reduction from 509,000 in 2023.

This isn’t the first time the Canadian government has tightened regulations for international students. Earlier this month, reports surfaced that Indian students were protesting in Canada due to stricter work permit policies.

How can this affect international students?

Here are five key ways Canada's decision to reduce student permits and tighten regulations will impact international students:

Limited study opportunities: With a 35% reduction in student permits and further cuts planned, fewer students will be able to secure admission to Canadian institutions, making it more competitive for international applicants, especially those from countries with high student demand, like India.

Higher financial burden: The increase in the Cost of Living Fund Requirement will add a significant financial burden on students, requiring them to show a higher bank balance in addition to tuition and travel costs, which may deter some students from applying.

Reduced work flexibility: The new restriction on off-campus working hours (24 hours per week) is lower than the previously allowed temporary increase during the pandemic, limiting students' ability to earn additional income to cover living expenses or pay tuition.

Post-graduation employment challenges: The new restriction on Post-Graduate Work Permits (PGWP) for students in certain licensing arrangements may limit job prospects after graduation, especially for those attending private institutions with public curricula, reducing the attractiveness of studying in Canada.

Increased competition for advanced degrees: The requirement for a Provincial Attestation Letter for master's and doctoral students, along with a 12% cap on spaces for these programs, will increase competition, making it harder for students pursuing advanced degrees to secure study permits.

Policy changes impacting international students in Canada

International students in Canada have witnessed a slew of policy changes starting from cap on admissions to restriction on post-graduate work permits and more. Here is a broad overview of the policies.

Increase in the Cost of Living Fund Requirement: Starting January 1, 2024, international students will need to show CAD 20,635 in their bank accounts, in addition to covering their first-year tuition and travel costs, to qualify for a study permit. This adjustment, announced by Immigration, Refugees and Citizenship Canada (IRCC), reflects updated cost-of-living requirements that hadn’t been revised since the early 2000s. The rule applies to study permit applications submitted from January 2024 onwards.

Change in Off-campus Working Hours: The temporary policy allowing international students to work more than 20 hours per week during classes ended on April 30, 2024. From May 1 to August 31, students were restricted to 20 hours per week. As of September 1, the new limit is 24 hours per week—higher than the pre-pandemic cap of 20 hours but below the expected 30 hours.

Cap on International Student Admissions: Beginning January 2024, Canada introduced a cap on international student admissions, limiting approvals to 360,000 study permits, a 35% reduction from 2023 levels. Provincial and territorial caps were set based on population, and starting January 22, 2024, study permit applications will require an attestation letter from provinces, with the process to be established by March 31, 2024.

Restriction on Post-Graduate Work Permits (PGWP): From September 1, 2024, international students enrolled in programs under curriculum licensing arrangements will no longer be eligible for a PGWP. Immigration Minister Marc Miller emphasized the need to prevent system abuse through "sham degrees" from private colleges delivering public college curricula, which have increased in popularity but lack proper oversight.

Additionally, a media report suggests that master's and doctoral students will now be required to obtain a Provincial Attestation Letter, a requirement previously limited to college and undergraduate students. The immigration department has also announced that 12% of allocation spaces will be reserved for these advanced degree students.