Major Changes to Canada’s Student Immigration Policy – May 2025 Update

In May 2025, Canada introduced significant changes to its international student immigration policies, aiming to balance the influx of students with national resources and labor market needs. These reforms impact study permit allocations, work opportunities, and the overall landscape for prospective international students.

Study Permit Cap and Provincial Allocations

The Immigration, Refugees and Citizenship Canada (IRCC) has set a cap of 437,000 study permits for 2025, marking a 10% reduction from the previous year. This measure is intended to alleviate pressure on housing, healthcare, and public services. Provinces like Ontario, Quebec, and British Columbia receive priority in allocations, reflecting their capacity and infrastructure to support international students.

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Introduction of Provincial Attestation Letters (PALs)

A new requirement mandates that most study permit applicants submit a Provincial Attestation Letter (PAL) or Territorial Attestation Letter (TAL). This policy ensures that provincial governments are involved in the approval process, aligning student intake with regional capacities and labor market demands.

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Changes to Post-Graduation Work Permit (PGWP) Program

The PGWP program has undergone reforms to better align with Canada’s immigration goals and labor market needs. Eligibility criteria have been tightened, and the program now emphasizes fields of study that correspond to labor shortages.

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Revisions to Maintained Status Rules

As of May 28, 2025, the IRCC revised the “maintained status” rules for temporary residents. Previously, individuals could remain in Canada under maintained status while awaiting decisions on extension applications. The new rules clarify the application of maintained status, particularly concerning multiple extension requests, impacting students and workers awaiting immigration decisions.

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Impact on International Students

These policy changes have led to increased competition for study permits and necessitate early and thorough preparation by prospective students. The emphasis on aligning education with labor market needs means that students should consider programs in high-demand fields. Additionally, understanding provincial requirements and securing necessary documentation, like PALs, is crucial for a successful application.