Canada’s New Study Permit Approvals Drop to 10-Year Low Amid Stricter Immigration Caps

Canada’s approval rate for new international student permits has reached its lowest point in a decade, even falling below the levels recorded during the COVID-19 pandemic. According to new data released by ApplyBoard, this sharp decline is primarily due to the federal government’s recent caps on post-secondary intakes, which have significantly reduced the number of new permits being approved.

ApplyBoard estimates that only around 80,000 new study permits will be approved in 2025 — a drastic 62% decrease compared to 2024, and well below the pre-pandemic average. For comparison, approximately 92,000 new permits were approved at the height of the pandemic in 2020, making this year’s projection one of the lowest in modern history.

The report warns that 2025 will be among the most competitive years ever for international students hoping to begin their studies in Canada. Colleges appear to be the hardest hit, as permit extensions now account for nearly 80% of all study permits issued. Nationwide, fewer than 30,000 new permits are expected to be approved for college-level programs, posing serious challenges for institutions that rely heavily on international enrollments.

Universities, on the other hand, are showing a slight recovery. Approval rates have improved from 30% in May to 55% in August 2025, though the number of new students being admitted remains limited. ApplyBoard’s data also reveals that applicants from India, the Philippines, and several African nations are facing the lowest approval rates, raising concerns about a potential decline in campus diversity across the country.

For the first time, students already in Canada will make up nearly two-thirds of all post-secondary permits granted this year, indicating that extensions are now outpacing new approvals. If this trend continues, the total international student population in Canada could shrink by as much as 50% by 2026, as fewer newcomers arrive to replace graduating students.

Despite the tightening policies, interest in studying in Canada remains strong. A remarkable 95% of international students surveyed by ApplyBoard say they still prefer Canada as their top destination, citing high academic standards, post-graduation work opportunities, and a welcoming multicultural environment as major draws.

While the short-term outlook is challenging for new applicants and institutions, confidence in Canada’s long-term position as a global education hub remains resilient among international students.