Canada Faces Sharp Decline in International Student Enrolment in 2025 Amid Policy Shifts

Canada’s international education sector is experiencing a significant downturn in 2025, as new data reveals international student enrolments have dropped sharply—falling well below the federal cap of 437,000 study permits for the year.

While the Immigration, Refugees and Citizenship Canada (IRCC) had set the cap as a way to ease pressure on housing and public services, actual numbers are lower than expected. Many universities are reporting a more than 50% decline in enrolments, creating deep financial strains, especially in provinces like British Columbia and Ontario.

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The drastic fall is primarily linked to new visa restrictions introduced in 2024 and further tightened in 2025. These include higher financial proof requirements, longer processing times, and stricter scrutiny of applications.

According to ApplyBoard, a leading international education platform, only 124,000 new study permits are expected to be approved in 2025, down from 245,000 in 2024, a nearly 70% decrease from 2023 levels.

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Adding to the challenge is a policy change that includes study permit extensions in the overall cap, meaning that over 60% of 2025’s permits are now allocated to students already in Canada. As a result, fewer permits are available for new students, drastically slowing down the inflow of international talent.

Data from January to April 2025 shows:

A 30% decline in new study permit applications.

A drop in approval rates to 33%, compared to 47% in the same period last year.

Bachelor’s and graduate program applications fell by 39% and 32% respectively.

Experts warn that this could be a turning point for Canada’s global standing in international education. While countries like Australia, the UK, and the US have maintained or improved their appeal to foreign students, Canada’s changing visa environment is making it a less attractive option.

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Meanwhile, institutions are being urged to adopt new strategies to adapt, including leveraging AI-based platforms like ApplyBoard, improving support services, and focusing on high-demand international markets such as India, Nigeria, and Vietnam.

The Canadian government has signaled that study permit caps will likely remain in place through 2026 as part of broader efforts to reduce the temporary resident population. However, officials, including Minister Marc Miller, have recently acknowledged the importance of international students and hinted at possible future adjustments.

As the situation continues to unfold, Canada’s challenge lies in balancing immigration controls with the sustainability of its higher education sector, which has long relied on international enrolments as a critical source of funding and diversity.