In a move that signals a major shift in its approach to international education and temporary residency, Canada’s federal immigration authority has announced a significant reduction in the number of study permits it will issue to foreign students next year. Under the new plan, Immigration, Refugees and Citizenship Canada (IRCC) has capped the total at 408,000 permits — a marked drop compared with recent years.
Of these 408,000 permits, 155,000 are earmarked for newly arriving students, and 253,000 are meant for extensions for current and returning students. This new figure represents a 7 percent decrease from the 2025 target of 437,000, and is 16 percent below the 2024 issuance target of 485,000 — underlining the scale of the contraction in foreign-student intake.
The cap on student permits — first introduced in 2024 — has already had a dramatic impact. The number of overseas students holding valid permits dropped from more than a million in January 2024 to approximately 725,000 by September 2025.
The rationale behind the move, IRCC officials say, is to curb the growth of Canada’s temporary resident population. The government aims to bring that share below 5 percent of the total population by the end of 2027.
In addition to cutting student visas, the broader immigration plan also involves scaling back permits for temporary foreign workers under schemes such as Temporary Foreign Worker Programme (TFWP) and International Mobility Program (IMP). Under the 2026 strategy, new work permits will number 230,000, declining further to 220,000 in 2027 and 2028.
The policy shift is expected to hit nationals of several countries hard — including Indian students and workers. Data from IRCC shows that in 2024, Indian nationals accounted for 36.5 percent of all study permits issued. As Canada’s top source country for international students and migrant workers, such reductions raise concerns about shrinking opportunities for prospective overseas students from India and other nations.
Critics argue that the steep cuts mark a sharp break from earlier years when Canada’s liberal student visa regime helped it absorb a rapidly growing temporary population. The sector had already seen approvals for Indian students plummet in 2025, with some analyses indicating that only a fraction of applicants are succeeding — due in part to stricter screening, new documentation requirements, and reduced overall quotas.
Supporters of the policy, however, argue that curbing the inflow is necessary to address mounting pressure on housing, healthcare, education infrastructure and social services — concerns that had gained traction as Canadian cities witnessed rapid population growth in previous years.
With fewer seats available for international students, experts caution that universities in Canada may face declining revenue and students from countries such as India may have to explore alternative destinations for higher education. The 2026–2028 plan marks a clear turning point for Canada’s international student policy, setting the tone for how immigration and education will be managed in the coming years.
