Will Canada Continue to Be a Top Destination for Indian Students? Policy changes present new challenges

Reports are emerging of Indian students protesting in Canada, with one of the main reasons being the tightening of work permit regulations. This situation may force hundreds of students to return to India, abandoning their aspirations of working and potentially settling in Canada.

The pathway to permanent residency has become more difficult, and certain policy changes are having an immediate impact on international students.

A significant portion of international students in Canada are from India. According to data on study permits obtained by the IRCC database, India contributed 2.25 lakh students in 2022, increasing to 2.78 lakh students in 2023. From January to June 2024, the number stands at 1 lakh. Tensions in diplomatic relations between the two countries are also being considered as a possible factor for this potential decline, though the data for the entire year will provide a clearer picture.

In recent months, policy changes affecting international students have been frequent, with some adjustments related to relaxations introduced during the pandemic to address labor shortages (such as off-campus working hours). A summary of the key changes is provided below.

Increase in the Cost of Living Fund Requirement:

Starting January 1, 2024, international students applying for a Canadian study permit will need to have double the previous amount of funds in their bank accounts—$20,635 CAD. This amount is in addition to covering the first year of tuition and travel expenses.

Immigration, Refugees, and Citizenship Canada (IRCC) has announced that the cost-of-living requirement for study permit applicants will be updated for 2024. Historically, this requirement has remained at $10,000 since the early 2000s. However, due to rising living costs, this amount no longer reflects current financial realities, leading many students to discover insufficient funds upon arrival in Canada. Starting January 1, 2024, new applicants will need to demonstrate they have $20,635—equivalent to 75% of the low-income cut-offs (LICO)—in addition to covering their first year of tuition and travel expenses. This adjustment will apply to all study permit applications submitted from this date forward.

Off-Campus Working Hours:

The temporary policy that allowed international students to work off-campus for more than 20 hours per week while classes were in session ended on April 30, 2024. From May 1 to August 31, students were limited to 20 hours per week. Beginning September 1, the weekly working hours have been adjusted to 24.

While this limit of 24 hours per week is higher than the pre-pandemic limit of 20 hours, it falls short of the anticipated 30 hours per week.

Cap on Inflow of International Students:

In January 2024, Canada introduced a cap on the number of international students it will admit. As of December 2023, the number of international students in Canada had exceeded 1 million. For 2024, the Immigration, Refugees, and Citizenship Canada (IRCC) has set a cap of 360,000 approved study permits, representing a 35% reduction from the previous year. The acceptance of new study permit applications for 2025 will be reviewed at the end of the current year.

Each province and territory will receive a portion of this intake cap based on their population and will have the discretion to allocate it among their educational institutions. To enforce this cap, starting January 22, 2024, every study permit application submitted to the IRCC will require an attestation letter from a provincial or territorial authority. Provinces and territories are expected to establish a process for issuing these attestation letters by March 31, 2024. 

Restriction on Post-Graduate Work Permits (PGWP):

A postgraduate work permit (PGWP) will no longer be granted to overseas students who start a study program that is a part of a curriculum licensing arrangement after they graduate, effective September 1, 2024. The immigration minister of Canada, Marc Miller, stated: “This program is not intended to have sham business and commerce degrees that allow people to come into the country and drive an Uber.” Students physically visit a private college that has been granted a license to teach the curriculum of a related public college, as per the IRCC’s explanation of curriculum licensing agreements. These programs have seen rapid growth in attracting international students but have less oversight compared to public colleges, effectively creating a loophole for PGWP eligibility.

Open Work Permits for Spouses Restricted:

In January 2024, it was announced that open work permits would be restricted to the spouses of international students enrolled in master’s and doctoral programs. Spouses of students pursuing other levels of study, including undergraduate and college programs, will no longer qualify for open work permits.

Other Changes:

Additionally, Canada has changed its temporary foreign worker program with stringent policies, which may affect international students’ employment opportunities.