What is Canada’s new visa policy for students?

As per official data, last year Canada issued nearly one million study permits, about three times that of a decade ago, and now they are changing their policy.

In response to a housing shortage aggravated by explosive growth in foreign student numbers, Canada has announced a temporary two-year cap on the intake of international students.

Last year, the country issued nearly one million study permits, triple the figures from a decade ago, according to government data. The new proposal aims to reduce the intake by almost a third.

Canada’s Immigration Minister, Marc Miller, revealed that the Liberal government will implement a two-year cap on student visas, resulting in the issuance of approximately 364,000 visas in 2024.

The plan also includes limitations on post-graduate work permits for foreign students, potentially encouraging them to return to their home countries.

Previously viewed as a straightforward path to permanent residency, these permits will now be subject to stricter regulations.

However, those pursuing master’s or post-doctorate programs will still be eligible for a three-year work permit.

Additionally, spouses of international students enrolled in undergraduate and college programs will no longer be eligible for permits, Miller stated.

The acceptance of new study permit applications in 2025 will be reassessed at the end of the current year.

The government’s decision comes in response to the surge in international students, creating a housing crisis and driving up rents across the country.

December 2023 saw a 7.7 per cent year-on-year increase in rents nationwide, according to Statscan. Prime Minister Justin Trudeau’s popularity has been dented mainly due to the affordability crisis, and opposition Conservative Party leader Pierre Poilievre has taken a commanding lead over Trudeau in opinion polls ahead of an election next year.

Concerns about the quality of education provided by some institutions have also prompted the government to reevaluate its immigration policies.

The move will not only affect the housing market but will also have economic implications. International students contribute approximately C$22 billion ($16.4 billion) annually to the Canadian economy.

This decision will likely impact educational institutions that expanded their campuses in anticipation of a continuous influx of students.

Ontario, the most populous province, has been the primary recipient of international students. Some businesses, including restaurants and the retail sector, have warned of potential labor shortages due to the cap on foreign students.

Canada’s move will have repercussions for Canadian banks, as international students are required to have Guaranteed Investment Certificates (GICs) of over C$20,000, covering living expenses.

Most foreign students, approximately 40%, hail from India, with China coming in second at around 12%, based on official data from 2022.

In response to these changes, the University of Toronto has expressed its readiness to collaborate with all levels of government to ensure that the allocation of study permits considers institutions like U of T and addresses challenges in the system.