Canada’s two-year cap on international student permits is triggering unintended consequences, sparking urgent warnings from the country’s higher education leaders. According to Maple News, Universities Canada, which represents the nation’s colleges and universities, is calling for a national recovery strategy to protect Canada’s international education system and global reputation.
Gabriel Miller, president and CEO of Universities Canada, acknowledged that Canada has effectively reduced immigration numbers in recent months. However, he emphasized that the current challenge is not about cutting numbers—it’s about ensuring the country continues to attract and retain the world’s top talent. “The cap was emergency surgery,” Miller said. “It’s time for the patient to start recovering. Canada must remind the world it remains a great place to study, work, and invest.”
Introduced in 2024, the federal cap aims to reduce new international study permits by 35% that year and an additional 10% in 2025. The annual target for new study permits has been set at 305,900 for 2025, 2026, and 2027. Quotas are allocated to provinces based on population size, with added scrutiny in response to housing shortages and a surge in asylum claims linked to the student visa pathway.
This regulatory tightening has reached beyond the intended limits. Study permit issuance in the first half of 2025 plummeted to 149,860—far below the 245,055 issued during the same period in 2024 and the 238,425 recorded in 2023. This steep drop reflects both the policy change and significant delays in visa processing, according to Universities Canada.
Furthermore, the government has narrowed eligibility for spousal work permits. Such permits are now largely restricted to spouses of international students enrolled in master’s programs of at least 16 months, as well as spouses of foreign workers in sectors experiencing labour shortages. This change has compounded concerns about Canada’s attractiveness as a study destination for families.
Universities Canada is not disputing the need for better-managed growth in international admissions. However, the advocacy group stresses that current measures have overshot their mark, deterring not just volume but quality. The lost potential of high-performing international students, many with interest in remaining in Canada post-graduation, could have long-term consequences for both the labour market and innovation sectors.
Adding further concern, Canada’s federal auditor general has launched an investigation into the international student system, with a full report expected in 2026. That review will examine the program’s oversight, housing pressure links, and use of the student system as a backdoor to immigration.
To restore global confidence and meet future labour market needs, Miller is urging Ottawa to launch a national recovery plan. This includes streamlining visa processing, improving transparency, and building collaborative frameworks between governments, educators, and employers. “This is about Canada’s ability to compete globally,” he said. “We need smart, coordinated action to ensure we remain a preferred destination for ambitious, talented students.”
Canada’s universities have long relied on international students not only for tuition revenue but also as pipelines for skilled immigration. With demand cooling and reputational damage mounting, Miller and other education leaders believe swift policy recalibration is essential to reverse the trend.