Canada announces two-year cap on international student admissions

The cap means a 35% reduction in new study visas this year but some provinces like Ontario will see a 50% reduction or more

MONTREAL — Immigration Minister Marc Miller is announcing a two-year cap on international student admissions.

The minister hopes the cap will give the federal and provincial government time to curb a system that he says is taking advantage of high international student tuition while providing, in some cases, a poor education.

The number of foreign student visas has tripled in a decade in Canada to more than one million, exacerbating a severe housing shortage in the country.

Financial Post
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Miller says the government will also bar students in schools that follow a private public model from accessing postgraduate work permits as of Sept. 1.

And in a few weeks, open work permits will only be available for the spouses of students enrolled in masters and doctoral programs, as well as professional programs such as medicine and law.

The announcement comes after months of pressure on Prime Minister Justin Trudeau’s government to take stronger action against colleges that are believed to be exploiting foreign students, who are charged an average of five times as much as Canadians.

The number of international study permit holders reached 1,028,850 at the end of December, according to Miller’s office.

Miller has already pledged a designated-institution framework that will prioritize visas for post-secondary schools that provide higher quality education and adequate supports, including housing, which would come into effect this fall.

He has also doubled the financial requirements for new study permit applicants. Single applicants now have to show they have $20,635, in addition to their first year of tuition and travel costs.

Miller said some provinces will be impacted more than others by the change. More than half of the existing one million students are located in Ontario, and his office has also previously pointed to Nova Scotia and British Columbia as seeing explosive increases.

The cap will mean a 35 per cent overall reduction in new study visas this year though some provinces, including Ontario, will see a reduction of 50 per cent or more.

International education contributes more than $22 billion to the Canadian economy annually and supports more than 200,000 jobs, according to Miller’s office. But the influx of foreign students has aggravated housing shortages, leaving many without proper accommodation.

Additional reporting by Bloomberg