Canada’s 2025 Budget: What It Really Means for International Students
Canada’s 2025 Federal Budget includes major cuts to new international study permits for the next three years.
However, when compared to what is already happening in 2024 and 2025, the real impact is less severe than it first appeared but challenges remain, especially for undergraduate and college programs.
🔍What’s Actually Changing?
- Big cut in new study permits but Canada is already issuing very low numbers
- Budget announced:
305,900 new permits (2025) → only 155,000 in 2026 → only 150,000 in 2027 & 2028
That looks like a 50%+ reduction. - Reality: Canada is already issuing very low numbers this year.
2024 new permits are down 60% and expected to reach only 120,000.
➡So, the new targets are not as shocking because Canada is already far below previous levels.
- Experts say targets for 2025 & 2026 will NOT be met
Dan Weber (CBIE adviser) says:
- The system has “overcorrected.”
- Even reaching 155,000 arrivals in 2026 will be very difficult.
➡ International enrolments continue to drop across universities, colleges, and language schools.
- Graduate students (Master’s & PhD) are now exempt from the permit cap
This is the biggest positive update.
- The new limit does NOT include:
- Study permit extensions
- Master’s students at public DLIs
- PhD students
This means:
- Universities can recruit more graduate students freely.
- Government wants to prioritize research and innovation.
➡ Canada is investing $1.7 billion to attract top researchers and PhD talent.
- New fast processing for PhD students
IRCC introduced:
- 14-day processing for PhD applicants and their families
- A new web page promoting graduate programs
This aligns with Canada’s goal to strengthen advanced education and research.
- Undergraduate & college students are still facing challenges
Although graduate students benefit from exemptions, the news is not good for:
- Bachelor’s degree applicants
- College diploma applicants
They continue to face:
- Lower permit allocations
- Stricter rules
- Reduced opportunities
Experts say this hurts:
- Local labour markets
- Skilled trades
- Tourism, service industries, and technical jobs in many regions
➡ Canada needs these workers, but the new rules reduce enrolment in these important programs.
- IRCC still working on improvements
IRCC also said it will:
- Speed up processing for transfer students by summer 2026
- Consider removing the co-op work permit requirement to make work placements easier
Final Simple Summary
Canada’s 2025 Budget continues strict limits on international study permits, but clarifies that graduate students (Master’s & PhD) will not be affected by the cap.
Undergraduate and college programs, however, will continue to face major reductions.
Experts warn Canada’s international student numbers will remain low for the next few years, hurting institutions and the labour market unless major changes happen.
For guidance on Canada admissions, study permits, and latest updates,
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