Canada Reconsiders Study Permit Cap Amid Campus Job Cuts

Table of Contents

1. Overview

2. How it Works

3. Job Losses Under the Study Permit Cap

4. Regional Impact of the Study Permit Cap

5. Financial Effects of the Study Permit Cap

6. Potential Changes to the Study Permit Cap

7. Next Steps for Institutions and Students

Overview

Canada introduced a study permit cap in January 2024 to curb the rapid rise in international students. The cap limits new study permits each year. Since its launch, the policy has sparked debate. Supporters cite housing shortages and service strain. Critics point to deep cuts in college and university staffing. International education generates over $22 billion annually, yet the cap has led to 8,260 job losses in the sector. As job cuts mount, the federal government plans consultations on adjusting the cap to protect both communities and campuses.

How It Works

The cap on study permit sets a maximum number of new study permits per calendar year. Key features:

1. Annual Limit

   • 2024 Cap: 437,000 permits.

   • Reduction: 40 percent fewer permits than 2023.

2. Reporting and Monitoring

   • IRCC tracks permit applications by institution and program.

   • IRCC consults provincial education ministries and post-secondary bodies.

3. Exemptions

   • Short-term language courses under 6 months.

   • Students from visa-exempt countries applying for certain programs.

4. Rationale

   • Address housing shortages in major cities.

   • Balance demand on health care and settlement services.

See IRCC’s full policy details: IRCC Study Permit Data.

Job Losses Under the Study Permit Cap

Since January 2024, colleges and universities have cut 8,260 positions due to tuition revenue declines. Higher education consultant Ken Steele tracks these losses:

These figures include announced layoffs, planned cuts, and early retirements. Steele warns unreported cuts may push the total higher. The job losses hit faculty, administrative, and support roles.

Regional Impact of the Study Permit Cap

The cap has not affected all regions equally.

1. Ontario

   • Lowest per-student funding among provinces.

   • Job losses exceed 5,000 positions.

   • Major urban centres face housing relief but financial strain on campuses.

2. Quebec

   • Tuition fees lower than other provinces.

   • Montréal institutions lost over 600 jobs combined.

   • Provincial funding cannot fully offset lost tuition revenue.

3. British Columbia

   • Strong international student demand in Vancouver.

   • Estimated 1,500 jobs cut across colleges and universities.

   • Local government considering rent-subsidy programs to ease student housing.

4. Other Provinces

   • Alberta, Manitoba, and the Atlantic provinces report fewer cuts but face uncertainty as they plan budgets for 2025.

Provinces bear the responsibility to fund post-secondary institutions. IRCC emphasizes that provincial and territorial governments must ensure proper funding to maintain quality education.

Financial Effects of the Cap

International student fees once covered up to 30 percent of many institutions’ operating budgets. Capping new study permits led to a $2.7 billion revenue shortfall in 2024. The gap forced colleges and universities to make swift cuts and revenue adjustments:

1. Program Suspensions and Closures

   • 583 academic programs—spanning certificate, diploma, and master’s tracks—were paused or eliminated.

   • Affected fields include language training, hospitality management, and niche technical diplomas.

2. Domestic Tuition Hikes

   • To recover lost funds, institutions raised in-province tuition by 3–5 percent on average for 2024–25.

   • Some universities increased ancillary fees (e.g., lab, technology) by up to 8 percent.

3. Reduced Student Supports

   • Academic advising positions fell by 15 percent, cutting availability for all students.

   • Mental-health staff were trimmed by 10 percent, lengthening wait times for counselling.

   • Language and writing centers lost up to 20 percent of their budget, reducing free tutoring hours.

4. Scholarship and Bursary Reductions

   • International-student bursaries declined by $45 million, limiting aid for lower-income learners.

   • Graduate research grants tied to international tuition streams were scaled back, delaying projects.

“Institutions counted on international fees for a significant share of revenue,” notes consultant Ken Steele. “The cap forced institutions to rebalance within a single fiscal year.”

Sources:

• Statistics Canada: Education Finance

• Canadian Bureau for International Education

Potential Changes to the Study Permit Cap

IRCC Minister Lena Metlege Diab signals possible tweaks to the study permit cap. Consultations will involve provinces, universities, and student groups. Possible adjustments:

1. Flexible Quotas

   • Redistribute unused permits mid-year to high-demand regions.

2. Program-Based Exemptions

   • Exempt in-demand fields (e.g., STEM, health care) from the cap.

3. Tiered Caps by Institution Size

   • Larger universities receive higher permit allocations; smaller colleges get smaller caps.

4. Phased Increases

   • Gradual permit increases over 2–3 years to allow planning.

Minister Diab stated, “Education drives local economies. We must keep our system sustainable and our institutions healthy.” Read her remarks in University Affairs:
Interview with Minister Diab.

Next Steps for Institutions and Students

As the study permit cap evolves, stakeholders can prepare:

1. Institutions

   • Review budgets and identify non-tuition revenue sources.

   • Engage with provincial bodies on funding requests.

   • Develop targeted recruitment for domestic and exempt programs.

2. Prospective Students

   • Apply early to secure one of the limited study permits.

   • Research exempt programs or institutions less affected by the cap.

   • Monitor IRCC announcements for updated intake numbers.

3. Policy Makers

   • Balance housing and service capacity with educational and economic needs.

   • Coordinate federal and provincial funding to ensure stable operations.

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References

• Immigration, Refugees and Citizenship Canada. “Study Permit Statistics.” Government of Canada.

• University Affairs. “Minister Diab on the Study Permit Cap Review.” June 2025.

• The PIE News. “IRCC Spokesperson Comments on Post-Secondary Funding.” May 2025.

• Statistics Canada. “Education Finance in Canada.” April 2025.

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