The Challenge of Dipping Study Permit Approval Rates for International Students in Canada

Canada has become a popular choice for international students in recent years due to its excellent educational system, multicultural atmosphere, and chances for immigration and employment after graduation. But new patterns in the approval rates of study permits have sparked worries that Canada would find it difficult to reach even its scaled-back goals for the number of foreign students it enrolls.

How do the latest reforms make an impact on international students?

Over the past six months, Canada has witnessed a significant transformation in its international education sector. The latest data from Q1 2024, released by Immigration, Refugees and Citizenship Canada (IRCC), sheds light on how the temporary study permit cap is influencing the decisions of international students considering Canada for their studies.

The introduction of the study permit cap has led to noticeable changes. During this period, the processing of study permits for certain programs was temporarily halted. This pause was necessary to allow provinces to receive their allocations for 2024 and establish the required provincial attestation letter (PAL) procedures. On January 22, 2024, the national processing of permits for these programs was suspended. Provinces were given until March 31, 2024, to implement and commence their PAL processes, after which permit processing resumed.

Key insights

• Compared to March 2023, when 70,000 permits were processed, only 33,000 permits were processed in March 2024.
• Processing times for study permits in Canada nearly doubled from January to May 2024, delaying the visibility of changes in student demand until the backlog is cleared later in the year.
• In Q1 2024, Indian students received over 55% of study permit approvals and over one-third of all processed permits, but March saw a historically low processing of just over 4,000 permits, indicating potential demographic shifts in incoming students.

In 2024, the typical processing time for a Canadian study permit rose gradually, from eight weeks in January to almost fifteen weeks in May.

All these data indicate that the Canadian government’s measures have started to impact international students’ decisions, with many potentially reconsidering Canada as their study destination due to the added complexity and uncertainty in the permit approval process.

Declining Study Permit Approval Rates

Despite the attractiveness of studying in Canada, recent data indicates a decrease in study permit approval rates for international students. This trend raises concerns about the potential impact on Canada’s efforts to meet its reduced target for international student enrollment. Factors such as changes in immigration policies, increased competition from other countries, and the global pandemic’s disruptions may have contributed to this decline.

The approval rate for study permits has seen a noticeable decline. According to data from Immigration, Refugees and Citizenship Canada (IRCC), the approval rate for international students was 50 percent between January and April this year,, eight percentage points lower than the 2023 average and five percentage points lower than 2022’s average of 55 percent. This dip is significant, as it not only affects the students who are denied entry but also has broader implications for Canada’s education sector and economy. This downturn is largely driven by a notable drop in applications from Indian students and a rising overall refusal rate for study permits.

Several factors contribute to the declining approval rates. One prominent reason is the stricter scrutiny of applications to combat fraudulent documentation and ensure that applicants have genuine intentions to study in Canada. While these measures are crucial for maintaining the integrity of the immigration system, they have also resulted in higher rejection rates for study permits.

The dipping study permit approval rates pose challenges for both international students and Canadian institutions. For students, uncertainty about visa approvals can deter them from choosing Canada as their study destination. This can lead to a loss of talented individuals who could contribute to Canada’s workforce and innovation. Canadian universities and colleges may also face financial strains if they fail to attract enough international students, affecting their academic programs and research initiatives.

Impact on International Student Enrollment

The decline in approval rates has a direct impact on the number of international students who can enroll in Canadian institutions. With fewer permits being approved, universities and colleges are witnessing a drop in international student numbers. This trend is concerning for several reasons:

1. Economic Impact: International students contribute significantly to the Canadian economy, not just through tuition fees but also by spending on housing, food, transportation, and other living expenses. A decline in international student enrollment can lead to substantial economic losses for both educational institutions and local economies.
2. Institutional Budgets: Many Canadian universities and colleges rely heavily on the higher tuition fees paid by international students. A decrease in international student numbers can strain institutional budgets, potentially leading to cuts in programs, services, and staff.
3. Diversity and Cultural Exchange: International students bring diverse perspectives and cultures to Canadian campuses, enriching the educational experience for all students. A reduction in their numbers can diminish the cultural diversity that is a hallmark of Canadian higher education.

Challenges in Meeting Reduced Targets

Recognizing the challenges posed by the pandemic and other global factors, Canada had already adjusted its targets for international student intake. However, the continued decline in study permit approval rates suggests that even these reduced targets may be difficult to meet.

One key challenge is the backlog of applications that built up during the pandemic. Despite efforts to clear this backlog, processing times remain lengthy, causing delays and uncertainty for prospective students. Additionally, geopolitical issues, travel restrictions, and competition from other countries offering attractive study destinations contribute to the complexity of the situation.

The Canadian government and educational institutions are taking steps to cope with these issues and improve situations. In order to expedite the application process, the IRCC has put in place procedures such as giving priority to applications from students enrolled in approved educational institutions and those who can provide verifiable documentation of financial assistance.

The estimated number of accepted research permits in 2024 is around 229,000 which is not far from the total of 217,000 permits approved in 2019. This assumes that application numbers and acceptance rates stay constant throughout 2024. But instead of using the existing 50% approval rate, the federal government’s new study permit cap is based on a 60% approval rate for 2024.

By giving more thorough instructions on the application process, granting conditional admissions to enable earlier permit applications, and stepping up outreach initiatives to reassure potential students about the advantages of studying in Canada, educational institutions are also improving their support for international applicants.

Looking Ahead

Although there are many obstacles in the way, given the current situation, there is always hope that Canada can reverse the trend. Canada can sustain its status as a top destination for international scholars by addressing the issues causing lower approval rates and improving assistance for overseas students.

The government and educational institutions must work together to address the serious problem of declining approval rates for study permits. For the sake of its education industry’s future as well as the country’s overall economic and social well-being, Canada must continue to be a warm and inviting place for overseas students.