This Wednesday, Immigration, Refugees and Citizenship Minister Marc Miller announced that the Liberal government will decrease the number of issued international student permits by an additional 10 per cent for 2025. This decision follows the previously approved 35 per cent reduction from 2023 that was set to be implemented for 2024. 

This cap will now also apply to students in master’s and doctoral’s programs. As well, graduates from public college programs will only be eligible for a three-year Post Graduate Work Permit if their programme is linked to an area of high labour demand. Other changes can be found here. 

The policy’s intended purpose is to address the acute housing shortage facing many Canadians today, especially in areas where student rentals are in high demand. In addition to the cap, stricter guidelines and reviews of international student programs are expected to take place to reduce the prevalence of “diploma mills” that take advantage of inflated international tuition fees to exploit these students financially.

The decision remains controversial in light of the financial difficulties facing many institutions today. UW had to overhaul its budgetary allocations after the cap was announced, considering that they were now losing potential income from international students. Queen’s University has also become notorious for its supposed potential bankruptcy in the near future, although this rumour has since been clarified to be heavily exaggerated and the university is simply facing the same challenges as many others. 

When asked if Waterloo had any comments about this decision, Vivek Goel said that they are “aware of the announcement… regarding a further tightening to the cap on study permits which now includes a separate cap on previously exempted graduate students.” He further elaborated that the university “is taking the time to understand how this will impact our institution” and “remain[s] concerned about the effect that the cap is having on the ability of universities to attract and retain the very best international students which [they] know is key to meeting Canada’s labour market and productivity needs.”

Student opinion appears to remain divisive. One anonymous international student said that “[the cap] is making it harder for students abroad, especially those in poorer countries, to get a quality education. Being an international student myself, Canada was the most attractive option due to its diversity and financial aid. If this wasn’t an option, other countries would’ve been too expensive and I would’ve had to stay in [home country].” Other students, with more conservative inclinations, have expressed fervent approval and excitement for less inflated real estate prices. However, after asking for specific comments, they simply stated they were “advised not to [speak].”

The ultimate effects of this policy remain to be seen, although Miller has mentioned positive effects already being visible in the housing market. As of now, though, UW and Canada will simply have to adapt and wait in the meantime.