Canada’s international education sector has seen a sharp slowdown, with new student arrivals falling nearly 60% in 2025 compared with last year. According to Immigration, Refugees and Citizenship Canada (IRCC), 89,430 students arrived between January and August 2025, down from 221,940 in the same period in 2024. August alone saw 45,380 new study-permit holders, a 43% decline from 79,795 a year earlier.
The decline reflects deliberate policy changes by Ottawa. Measures include tighter study-permit caps, stricter acceptance-letter verification, higher proof-of-funds requirements, narrower post-graduation work permits, and restrictions on spousal work permits. IRCC calls the policy mix a move toward “sustainability.” Together, these rules have slowed approvals, reduced total student numbers, and shifted the timing of arrivals.
Overview of international students in Canada
Economic and academic impact
As of August 2025, Canada had 802,425 international students, down from 1,020,045 a year earlier, a net loss of 217,620. Students holding only study permits fell 21%, while those with both study and work permits dropped nearly 22%. One in five international students who were in Canada last year is no longer there, showing a structural, not seasonal, decline.
The impact extends beyond classrooms, according to a TOI report. International students support housing, retail, transport, and local services. Declining arrivals are straining university budgets, forcing hiring pauses, program closures, and reduced research funding. Smaller colleges that relied heavily on global students are most exposed.
India is particularly affected as Indian students make up 39% of Canada’s international student population, TOI reported. Many are now reassessing plans, exploring alternatives such as Germany, the UK, and Australia, which offer lower costs and simpler pathways. For Indian students, the “Maple Dream” remains appealing but now comes with higher expenses, more paperwork, and greater uncertainty.
The decline reflects deliberate policy changes by Ottawa. Measures include tighter study-permit caps, stricter acceptance-letter verification, higher proof-of-funds requirements, narrower post-graduation work permits, and restrictions on spousal work permits. IRCC calls the policy mix a move toward “sustainability.” Together, these rules have slowed approvals, reduced total student numbers, and shifted the timing of arrivals.
Overview of international students in Canada
Economic and academic impact
As of August 2025, Canada had 802,425 international students, down from 1,020,045 a year earlier, a net loss of 217,620. Students holding only study permits fell 21%, while those with both study and work permits dropped nearly 22%. One in five international students who were in Canada last year is no longer there, showing a structural, not seasonal, decline.
The impact extends beyond classrooms, according to a TOI report. International students support housing, retail, transport, and local services. Declining arrivals are straining university budgets, forcing hiring pauses, program closures, and reduced research funding. Smaller colleges that relied heavily on global students are most exposed.
India is particularly affected as Indian students make up 39% of Canada’s international student population, TOI reported. Many are now reassessing plans, exploring alternatives such as Germany, the UK, and Australia, which offer lower costs and simpler pathways. For Indian students, the “Maple Dream” remains appealing but now comes with higher expenses, more paperwork, and greater uncertainty.
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