Canada study visa: Canada cuts study permits for international students by 10%. How it will impact Indians 

The landscape for international students in Canada is shifting again. For 2025, Immigration, Refugees and Citizenship Canada (IRCC) has finalized provincial and territorial allocations for study permits, setting the cap at 437,000 — a 10% reduction from the previous year. This marks the latest move in Canada’s evolving strategy to manage international student intake amid growing concerns over housing, healthcare, and public services. 

The cap, first introduced in 2024, was designed to curb the strain on essential services and stabilize housing markets, particularly in cities with dense student populations. The measure has already made an impact, reducing the number of incoming international students by about 40% and easing rental market pressures in key areas. 

One significant change for 2025 is the expanded requirement for provincial or territorial attestation letters (PAL/TAL). Initially applied to most new study permit applicants, this requirement will now include master’s and doctoral students, as well as many individuals applying from within Canada. However, existing study permit holders seeking an extension at the same designated learning institution (DLI) and study level remain exempt from this requirement. 

The new cap divides the expected permits into two categories: approximately 120,724 will be issued to PAL/TAL-exempt students, while around 316,267 will go to applicants who must submit these attestation letters. Provinces and territories are prohibited from carrying over any unused allocations from the previous year, reinforcing strict annual limits. 

Despite sustainable growth in the graduate international student sector, the IRCC has opted to include this group under the cap as a preventive measure. “Provinces and territories are expected to issue the same number of study permits to graduate students in 2025 as they did in 2023,” ensuring that growth remains controlled. Each region’s sub-allocation for graduate students is now directly tied to their 2023 issuance levels. 

Further regulatory changes are set to take effect in November 2024. Designated learning institutions will be required to participate actively in student compliance reporting and verify letters of acceptance. Non-compliance could result in severe penalties, including suspension from accepting new international students for up to a year. 

These measures reflect Canada’s broader efforts to balance the benefits of international education with the need to protect public infrastructure and services, setting a new tone for the future of student mobility in the country.