Fewer International Students Choosing Canada in 2025 – Here’s Why
2025: A Noticeable Decline
Recent data indicates that Canada has seen a sharp decline in international student enrollment in 2025. Between January and August 2025, Canada admitted approximately 132,505 fewer new international students compared to the same period in 2024 (CIC News). Some reports suggest that overall new student arrivals have dropped by almost 60% (Indian Express).
Looking at study permit approvals specifically, numbers have fallen up to 70% compared to 2024 (The Daily Star). Overall, the total number of study permit holders dropped from 679,820 in December 2023 to about 499,365 in July 2025, a decrease of roughly 26.5% (ICEF Monitor).
This sudden decline has raised concerns among universities, policymakers, and students worldwide. Canada was historically one of the top destinations for international students, but 2025 seems to mark a turning point.
Key Reasons Behind the Decline
Several factors are contributing to the reduced interest in Canada among international students:
1. Study Permit Caps and Quotas
In 2024, IRCC introduced nationwide caps on the number of study permits issued (Indian Express).
These caps were further tightened in 2025, reducing study permit allotments by approximately 10%.
Even if student demand remains high, the government’s intentional restrictions mean fewer students can be approved for study permits.
2. Stricter Verification and Financial Requirements
IRCC now conducts more thorough acceptance letter verification to prevent study permit fraud (Indian Express).
Proof of funds requirements have also become more stringent, demanding higher evidence of living and tuition expenses. With rising tuition fees and cost of living, this is a major barrier for many students.
Certain shorter-duration courses and private college programs that were previously eligible for Post-Graduation Work Permit (PGWP) now no longer qualify, reducing their attractiveness (Indian Express).
3. Tightened Post-Graduation Work Permit (PGWP) and Work Flexibility
PGWP eligibility has been restricted to programs that align with Canada’s national labor and immigration goals. Many programs that were eligible before are no longer included (Indian Express).
Rules for off-campus work and temporary worker permits have become stricter, reducing the economic viability of studying in Canada for many students (Immigration News Canada).
4. Infrastructure and Housing Pressure
The massive influx of international students has created pressure on housing, public services, and infrastructure.
The Canadian government has revised temporary resident targets to reduce overall inflow, including students, in order to avoid system overload (CIC News).
5. Global Competition and Changing Student Priorities
Other countries are now offering more flexible visa options and better work-permit conditions.
Rising tuition fees and living costs have made Canada less attractive compared to destinations offering a higher return on investment (Times of India).
Impacts on Universities and Students
Canadian universities that relied heavily on international tuition fees have seen significant revenue declines (Immigration.ca).
Some institutions have cut courses, frozen support services, and reduced staff, affecting domestic and international students alike.
For international students already in Canada, uncertainty around PGWP eligibility and work flexibility has created career and settlement challenges (Indian Express).
Advice for Prospective Students
If you are considering Canada in 2025:
Check program eligibility for PGWP carefully.
Ensure financial proof meets the new strict requirements.
Have realistic expectations for post-study work and settlement prospects.
If you are flexible, exploring alternative destinations may provide better financial returns and career stability. Countries like Australia, Germany, or the UK may offer similar education quality with fewer restrictions.
Broader Implications for Global Student Mobility
Canada’s 2025 decline signals that policy and economic conditions now play a larger role than reputation alone.
Students are prioritizing ROI, work opportunities, and policy stability, not just university rankings.
Universities worldwide may reconsider over-reliance on international fees, exploring scholarships, hybrid programs, and domestic student recruitment to ensure financial stability.
Conclusion
Canada’s international student enrollment has dropped sharply in 2025, with new arrivals falling by 60–70% (Financial Express). The decline is driven by a combination of stricter study permit caps, higher financial requirements, reduced work flexibility, and government control measures.
Prospective students need to carefully assess their options. While Canada remains a high-quality education destination, it is no longer as predictable or welcoming as before. Students are advised to research thoroughly, select eligible programs, and consider alternative countries for study and post-study opportunities.
References:
CIC News – Canada sees decline in international student arrivals
Times of India – Canada losing appeal among international students
Financial Express – Canada records 69% decline in foreign students