Unprecedented Decline: A 60% Plunge in New Arrivals
Canada's higher education landscape has undergone a seismic shift with new international student arrivals plummeting by 60% in the first 11 months of 2025 compared to the same period in 2024. This drastic reduction, amounting to 157,380 fewer students, stems directly from federal study permit caps introduced to address housing shortages, public service strains, and unsustainable population growth driven by temporary residents.
The policy trajectory began in January 2024 with a cap limiting approved study permits to around 360,000—a 35% reduction from 2023 levels. This was followed by further tightening: 437,000 permits targeted for 2025 and now 408,000 for 2026, including just 155,000 for new arrivals.
Understanding the Study Permit Caps: Policy Mechanics and Timeline
Study permits, formally known as Temporary Resident Visas for academic purposes, allow international students to pursue post-secondary education at Designated Learning Institutions (DLIs) in Canada. The cap system allocates Provincial Attestation Letters (PALs) and Territorial Attestation Letters (TALs) to provinces based on population and prior approval rates, which DLIs must secure before IRCC processes applications.
Step-by-step, the process works as follows: (1) Prospective students apply to a DLI; (2) Upon acceptance, the DLI requests a PAL/TAL from its province; (3) With the letter, the student submits a study permit application to IRCC; (4) Approval rates have fallen amid stricter financial proof requirements (e.g., CAD$20,635 for living expenses outside Quebec) and English proficiency standards.
- 2024: Initial 35% cut to 360,000 permits.
- 2025: Continued decline, with 30% fewer new study permits Jan-Apr vs. 2024.
- 2026: 309,670 PAL/TAL application spaces nationwide, down sharply.
2026 Provincial Allocations: A Closer Look
IRCC's November 2025 announcement detailed PAL/TAL allocations, prioritizing larger provinces while capping growth. Ontario receives the lion's share at 104,780 applications (70,074 permits), followed by Quebec (93,069 apps/39,474 permits) and British Columbia (32,596 apps/24,786 permits).
| Province/Territory | PAL/TAL Applications | Study Permits Target |
|---|---|---|
| Ontario | 104,780 | 70,074 |
| Quebec | 93,069 | 39,474 |
| British Columbia | 32,596 | 24,786 |
| Alberta | 32,271 | 21,582 |
| Others (total) | 46,954 | 24,084 |
This table illustrates the uneven distribution, with smaller territories like Nunavut receiving zero applications, exacerbating regional disparities in higher education access.Official IRCC Allocations
Financial Repercussions Rippling Through Universities and Colleges
Canadian universities and colleges, chronically underfunded by provinces, relied heavily on international tuition—often 20-30% of revenue, and up to 68% at Ontario colleges—to subsidize domestic education and research.
For instance, Vancouver Island University (VIU) reports a $20.2 million deficit due to declining international enrollments. Colleges Ontario warns of $2.5 billion in lost revenue for 2026, following 8,000 job losses already.
Case Studies: Institutions on the Front Lines
Selkirk College in rural British Columbia exemplifies the crisis: international enrollment dropped from 800 to 450 in 2025, projected at 200 for 2026, slashing $9 million from its $73 million budget. The college closed its Nelson arts campus, two community education centres, and programs in ceramics, textiles, and cooking—40 staff laid off, more pending. President Maggie Matear noted, "Nothing prepares you for sitting down with colleagues... to tell them they’re losing their jobs."
Centennial College suspended 49 programs amid the cap. Humber Polytechnic offered voluntary exit packages to staff facing enrollment collapse. Fanshawe College laid off 163 employees despite provincial funding. In universities, the University of Calgary shuttered its classics and religion department due to deficits. Toronto Metropolitan University (TMU) bucks the trend slightly with 20% more applications, but overall, the sector reels.
The Manitoba Institute of Trades and Technology (MITT) became the first public post-secondary closure, with 55% international drop.
Program Suspensions, Layoffs, and Broader Academic Impacts
Beyond closures, dozens of programs across Ontario colleges have been axed, targeting low-enrollment offerings. BC institutions like Kwantlen Polytechnic University (KPU) cut 70 faculty positions. These changes disrupt supply chains in fields like healthcare training and trades, critical for rural economies.
- Layoffs: Humber (voluntary exits), Fanshawe (163), Selkirk (40+).
- Programs Cut: Arts, hospitality, niche trades at multiple colleges.
- Domestic Ripple: Reduced cross-subsidies mean fewer seats or higher fees for Canadians.
Research-intensive universities like U15 members welcome grad exemptions but decry underfunding, with stagnant provincial grants exacerbating woes.
Stakeholder Perspectives: A Multifaceted Debate
Government officials, like Immigration Minister Lena Metlege Diab, hail the decline as evidence of effective policy: from over 1 million study permit holders in early 2024 to 725,000 by September 2025.
Experts note chronic underfunding—universities operate on 1960s-era per-student grants—making international reliance inevitable. Students voice frustration over visa delays, while provinces like Ontario invest $6.4 billion in post-secondary but prioritize labour-aligned programs. Balanced views emphasize attracting top talent via grad exemptions while stabilizing growth.PIE News Analysis
Effects on Domestic Students and the Labour Market
Though focused on internationals, the cap indirectly hits Canadians: subsidized programs vanish, tuition pressures mount, and regional campuses close, limiting access. Rural areas like BC's Kootenays lose workforce development in tourism ($1.1B regional impact), accelerating population decline.
Positive shifts include refocus on domestic recruitment and high-demand fields like AI, health, and trades, aligning with Canada's innovation goals. For career advice in this evolving sector, visit higher ed career advice.
Navigating the Future: Adaptations and Opportunities
Looking to 2026-2028, targets stabilize at 150,000 new arrivals annually, with grad exemptions fostering research excellence. Provinces adapt: BC's sustainability review, Ontario's labour prioritization. Institutions pivot to quality over quantity—targeted marketing to high-value markets like Europe, exemptions leveraging master's programs.
Solutions include diversified revenue (endowments, industry partnerships), online/hybrid models, and policy advocacy for stable funding. AcademicJobs.com supports the sector with university jobs and postdoc opportunities, helping talent retention amid flux.
Key Takeaways and Actionable Insights
This 60% drop underscores the need for resilient higher education. Stakeholders must collaborate on funding reforms, program realignment, and ethical recruitment. Aspiring academics, rate your professors at Rate My Professor or explore higher ed jobs to thrive in Canada's adapting landscape. The future favors adaptive institutions prioritizing quality and domestic needs.