Canada is issuing a new cap on foreign student permits in an attempt to ease housing and healthcare costs.

The announcement on Monday involves a two-year cap on new international student permits following an explosive growth in the past few years. This was one of the reasons that officials believe that aggravated the housing shortage across the country.

Canada's Foreign Student PermitsForeign Student Permits: Canada Issues New Cap on Plan To Ease Housing, Healthcare Costs

(Photo : Sebastien ST-JEAN / AFP) (SEBASTIEN ST-JEAN/AFP via Getty Images)
Canadian officials announced a new cap on foreign student permits in an attempt to ease housing and healthcare costs across the region.

Government data showed that last year, Canada issued nearly 1 million study permits, which was roughly three times the number that was issued a decade ago. A new proposal seeks to cut the intake by nearly a third of the base number.

In a statement, Canada's immigration minister, Marc Miller, said that the Liberal government will introduce a temporary, two-year cap on new student permits. This will result in the issuance of roughly 364,000 permits this year.

The proposals would also implement limits on work permits that are handed out after graduation to foreign students who attended some institutions. The permits have been viewed as an easy way to secure permanent residency in Canada, as per Reuters.

People who are pursuing master's or post-doctorate programs will be eligible for a three-year work permit. On the other hand, Miller said that the spouses of international students who are enrolled in other levels of study, including undergraduate and college programs, will no longer be eligible.

He added that Canada's acceptance of new study permit applications in 2025 will be subject to reassessment at the end of the current year. The development comes as the nation has emerged as a popular destination for international students since it is relatively easy to get work permits after finishing courses.

However, a surge in international students led to an acute shortage of apartments across the country, which pushed up rents. In December last year, rents across Canada rose by 7.7% compared to the prior year.

Despite the changes, Canada will most likely remain as one of the most welcoming countries for foreign students. This is because the country hosts more of them relative to population compared to any other nation, according to the Voice of America News.

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Attempt to Ease Housing, Healthcare Costs

When Canadian officials announced the changes, they also cited concerns that some foreign students were being exploited by low-quality profit-oriented diplomat "mills." These offer something less than the level of education expected by the incoming students.

While Canada's popularity as a destination for foreign study has exploded in the past few years, an immigration consultant in London, Ontario, Earl Blaney, said that the foreign study program 'has been inundated with problems as international student volumes have increased."

Each province and territory will be allotted a portion of the roughly 360,000 undergraduate study permits this year. The numbers will be determined by population and current student intake in each region. Provinces will then decide how to distribute the permits they receive across their universities and colleges.

The announced cap will only apply to students at a diploma or undergraduate program and those who are applying for study permit renewals will not be affected. The Canadian government, as part of the change, will no longer grant work permits for students graduating from colleges that operate under a public-private partnership model, said BBC.


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