New study permit caps announced

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A hand marked “Canadian Government” holds a lit lighter to the left of a pile of papers marked “Study Permits
Of course Universities are upset, their opportunities to exploit international students are being curtailed… crownlab, brand237147626, and makstorm via canva, manipulated by Allister White

Federal government makes changes to permit policy, availability

Canada has long been a sought-after destination for international students, boasting a highly ranked education system and substantial post-graduation work opportunities. However, the increasing demand for housing, infrastructure, and other resources has driven the Canadian government to implement new rules for international students in 2024, marking a significant shift in the country’s approach to managing foreign enrolment.

In response to the mounting pressures on public resources, Canada has introduced a two-year cap on study permits. Under this new policy, the number of permits issued in 2024 has been reduced by about 35 per cent.

According tothe Government of Canada’s website, the government’s goal is to bring the percentage of temporary residents down to five per cent of Canada’s total population by 2026, compared to 6.5 per cent currently.

Beginning Nov 1, 2024, the eligibility criteria for Canada’s Post-Graduation Work Permit (PGWP) will shift, reflecting a greater emphasis on meeting labor market needs. Graduates will qualify for a PGWP only if their college studies were in fields linked to national labor shortages. College graduates not meeting these criteria will no longer be eligible for the three-year PGWP.

In another policy shift, applicants for the PGWP will be required to meet minimum language proficiency standards in either French or English. The new requirements, effective Nov 1, 2024, will mandate that university graduates meet a Canadian Language Benchmark (CLB) level 7, while college graduates will need a CLB level 5.

In recognition of Canada’s rising living costs, international students will need to demonstrate significantly higher financial stability. According to immigration.ca, effective Jan 1, 2024, “the Guaranteed Investment Certificate (GIC) [requirement] has doubled from $10,000 to $20,635.” While this change ensures that students can support themselves during their studies, it also raises accessibility concerns, particularly for students from low-income countries or families.

Further restrictions will also affect the eligibility of spouses of international students. Previously, spouses or partners of students enrolled in advanced degree programs were generally eligible for a Spousal Open Work Permit (SOWP). Starting in 2024, however, eligibility will be limited to spouses of students in master’s programs lasting 16 months or more. The government has indicated that these changes will ensure spousal permits better align with academic commitments.

Previously, advanced degree students, including those in master’s and doctoral programs, were exempt from Canada’s study permit cap. However, Minister Miller announced that these students will now be included in the cap starting in 2025.

The changes to international student regulations have also prompted action from several Canadian provinces. According to Global News, British Columbia, for example, has introduced a temporary halt on new post-secondary institutions enrolling international students for two years and has implemented higher standards for designated learning institutions to ensure alignment with federal requirements.

The new rules have financial implications for Canadian universities and colleges, many of which have come to depend on international student tuition. According to Global News, for institutions like Toronto Metropolitan University, which have seen significant increases in international enrolment, the restrictions could lead to program cuts and layoffs.

Isaac Garcia-Sitton, Executive Director of International Student Enrolment at Toronto Metropolitan University, in an interview with Global News, stated that colleges with limited provincial funding may face operational risks as international student revenues decline. Due to provincial restrictions on tuition hikes, universities and colleges have largely relied on international student tuition as a crucial revenue stream, which now faces limitations under the new policy.

Many universities are concerned because “[a]round 800,000 international students currently call Canada home… [and] the gulf between domestic and international fees is significant,” Global reported. For example, Global found that “in the 2022-23 academic year, the average domestic student…paid $6,834 in tuition…the average international student paid nearly six times that amount at $36,123.”

This gap in fees “can be attributed to the steady decline in funding of post-secondary institutions across Canada since the 1970s,” Global found. Universities Canada stated that they are “concerned that the cap per province is going to add stress on an already stressed system.”

The government’s policies, while designed to balance demand with sustainable growth, introduce new challenges for both students and educational institutions. In general, though, Miller said that “simply put, the international student cap is here to stay.” As Canada continues to fine-tune its approach, for prospective and current international students, staying informed of the evolving requirements to ensure their study plans align with new visa, financial, and work eligibility standards is important.

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