As of January 24, 2025, the Government of Canada announced a 10% reduction in the total number of study permits it will issue compared to 2024, with a cap set at 437,000 permits for the year. This policy continues the two-year cap strategy introduced in 2024 and includes both new applications and extensions issued for students already in Canada.
Why the Cap?
Canada’s skyrocketing population growth in recent years—fueled largely by temporary residents like students—has led to intensified pressure on housing, healthcare, and public services. In 2023 alone, over 650,000 new study permits were issued, bringing the number of international students to more than one million, about triple the number from a decade ago.
Despite their economic benefits, this explosive growth triggered public concern about infrastructure challenges. The cap is intended to moderate this influx, alleviate strain on housing markets, and give provinces more breathing room to enhance student supports.
How the Cap Is Structured
The total annual cap of 437,000 permits covers:
- Graduate students – ~73,282 permits
- K–12 students (PAL/TAL-exempt) – ~72,200 permits
- Other PAL/TAL-exempt cohorts – ~48,524 permits
- Remaining PAL/TAL-required applicants – ~242,994 permits
Provincial and territorial allocations are predefined, with top provinces such as Ontario (~116,740), B.C. (~53,589), Quebec (~72,977), and Alberta (~32,660) receiving the lion’s share of permits.
Impact on “New” vs. “Onshore” Students
A key factor in 2025 is that the cap now includes permit extensions for students already in Canada. According to data, 60–70% of the cap is projected to go to these extensions, leaving only approximately 124,000 permits for brand-new international students. That’s a nearly 50–70% decline in arrivals versus 2023 levels.
Between January and April 2025, new permit approvals dropped to 33%, resulting in fewer than 31,000 new students entering Canada in that period—a stark contrast to previous years.
Effect on Heritage College Applicants
1. Reduced Seats for International Students
With fewer study permits available for new applicants, Heritage College and other Designated Learning Institutions (DLIs) must be strategic. Programs that traditionally enroll large numbers of international students, particularly at the undergraduate diploma level, may face lower admission quotas.
2. Greater Importance of PAL/TAL
Most international applicants require a Provincial Attestation Letter (PAL) or Territorial Attestation Letter (TAL). These help ensure that applications are valid and complete, reducing the risk of return or refusal. Institutions must guide applicants to secure these letters early to avoid missed chances.
3. Heightened Competition & Enrollment Planning
With limited capacity, Heritage College should prioritize:
- DLI compliance and data tracking: maintaining records on enrollment status and reporting to IRCC.
- Program diversification: marketing PAL-exempt options (e.g., grad credentials, short-term certificate programs).
- Targeted outreach: emphasizing in-demand industries like health, social services, and trades, aligning with PGWP and labour priorities.
4. Early Planning & Outreach Campaigns
Applicants must begin early, ideally mid-year prior, to allow time for PAL/TAL processing. Heritage College can support this through:
- Workshops and advising sessions for students and agents
- Pre-screening supports: making sure applications meet IRCC criteria
- Campus visa support clinics post-arrival
Why It Still Matters
- Economic & educational benefits: Despite tighter controls, international students contributed over $22 billion to Canada’s economy in 2022.
- Pathway to residency: Students often use Canada as a two-step immigration route, which remains a key incentive.
- Labour market priorities: A growing share of permits go to students in “in-need” sectors, but the cap ensures balanced growth.
