Canada Announces Two-Year Cap on International Student Permits

The decision, aimed at addressing housing shortages and concerns about education quality, could have significant financial implications for universities and impact the Canadian economy.

• Canada's federal government has announced a two-year cap on new international student permits, reducing the number by nearly a third, in response to a surge in international students and concerns about housing shortages and the quality of education provided by some institutions.
• Ontario universities and colleges are concerned about the financial impact of the cap, as international student tuition fees make up a significant portion of their revenue. The cap could exacerbate existing financial deficits at these institutions.
• The cap also includes restrictions on work permits for some graduating students, impacting their ability to secure permanent residency in Canada.
• International students contribute about C$22 billion ($16.4 billion) annually to the Canadian economy. The cap could impact businesses, including restaurants and retail sectors, which rely on foreign students as temporary workers.
• The decision has sparked debate, with some arguing that international students are being scapegoated for housing and affordability issues in Canada.

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