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What Is Canada’s Foreign Student Cap and Who Is It Affecting, Explained?

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On Monday, Canada unveiled a two-year limit on the admission of foreign students, responding to a substantial surge in recent years that has exacerbated housing shortages. Government data reveals that last year, Canada granted almost one million study permits, marking a threefold increase from a decade ago. The proposed measures aim to reduce the intake by nearly one-third. The upcoming changes intend to address the challenges posed by the rapid growth in foreign student numbers. The following outlines how the new plans will be implemented and discusses the implications at stake.

Canada’s Immigration Minister, Marc Miller, shared that the Liberal government plans to implement a temporary, two-year limit on student visas. This means that around 364,000 visas will be issued in 2024. Additionally, the new proposals will place restrictions on post-graduate work permits granted to foreign students, encouraging them to consider returning to their home countries. Previously, these permits were often seen as a straightforward route to obtaining permanent residency.

Those pursuing master’s or post-doctorate programs will still be eligible for a three-year work permit. However, spouses of international students enrolled in other study levels, such as undergraduate and college programs, will no longer qualify. Miller mentioned that the acceptance of new study permit applications in 2025 will be reassessed at the end of the current year.

Cracking Down on Students: What’s Happening in Canada?

Canada welcomes many students from other countries who come to study and often stay to work. This is great, but lately, it’s caused a big problem: there aren’t enough apartments to go around! Rents are skyrocketing, making it tough for everyone to find a place to live.

This rise in rent has made people unhappy with the government, especially Prime Minister Trudeau. His popularity has dropped, and even the opposition leader is looking like a strong contender in the next election.

So, the government is trying to fix the problem by limiting the number of new students who can come to Canada for a while. This way, hopefully, there will be more apartments available and rents will eventually go down. In addition to the rental crisis, the government has expressed concerns about the calibre of education offered by certain educational establishments.

Who Gets Hit by the Student Limit?

  • Universities: International students pay a lot of money, which helps universities stay afloat. So, with fewer students, some universities might struggle.
  • Businesses: Many restaurants and stores already lack workers, and many of those workers are international students. With fewer students, these businesses might face even more difficulties.
  • Banks: International students need to invest money in Canada before they can study here. This helped Canadian banks. With fewer students, banks might see less of this money coming in.
  • Students: The biggest impact will be on international students who hope to study and work in Canada. This new rule might make it harder for them to come.