The Canadian government has announced several immigration policy changes relating to international students leading up to 2025, most notably an increase in the cost-of-living requirements for applicants from $10,000 to $20,645 and a further 10 per cent reduction from 485,000 permits in 2024 to 437,000 in 2025. 

These changes have come about as a result of the country’s broader desire to “better [align] temporary and permanent resident immigration levels with community capacity” (cite). Along with a 21 per cent reduction of permanent residents being accepted into the country in 2025, this would hopefully alleviate some of the long-standing strain on housing, healthcare and other social services.

In a news conference, Marc Miller, Minister of Immigration, Refugees, and Citizenship, gives additional reasons for his decision. In capping the number of permits, he says the country will be more poised to crack down on private, for-profit “puppy mills that are just churning out diplomas” that have historically engaged in predatory recruitment processes with “recruiting students with false promises of in-class instruction and guaranteed housing.” This reality has come about mostly from the freeze on domestic tuition in place since 2018, which has encouraged many institutions to rely heavily on international student fees to make up for revenue shortfalls. Yet, around 70 per cent of programs offered in public colleges, which account for a disproportionately high share of international students, are ineligible for post-graduation work permits. This leaves many international graduates in difficult circumstances where they cannot find work — often after spending close to $150,000 for an undergraduate degree — and are forced to return to their home country.

Despite these reported benefits, the capping of study permits and other changes in PR and temporary resident pathways have come under heavy criticism from groups representing post-secondary institutions. Many say that they feel the government is not providing the necessary support to assist them with the dire financial consequences that these policies are likely to create. Miller addressed these sentiments by ultimately holding firm in his decision: “The federal government has a role [in providing assistance], balance sheets can’t be determined by whether [schools] get international students or not. It’s a luxury. It’s a privilege and not necessarily a right.” He further states that provinces need to “step up” to work with schools to ensure the sustainability of the post-secondary sector. This is perhaps most relevant for Ontario, as the province has historically spent less money on post-secondary education than any other province.

Nevertheless, it is clear that many universities and colleges are facing an unprecedented financial crisis. “International students have been the backbone of sustaining [our university system],” says Alex Usher, president of Higher Education Strategy Associates, a firm specializing in policy analysis and consulting for governments and post-secondary institutions.. According to the Council of Ontario Universities’ president — Steve Orsini — 10 Ontario universities projected losses totalling $600 million between them in 2024-2025. Colleges are in similar rough waters, with Seneca Polytechnic being forced to close one of its campuses temporarily and Mohawk College projecting a $50 million deficit for 2025.

The University of Waterloo is among those feeling the impact of the projected drop in international student enrolment. According to ApplyBoard, an online international student recruitment portal, the cap also appears to have discouraged many from pursuing a Canadian education in general — Canada has since fallen to third in terms of desirability, behind the U.S. and the United Kingdom. As of November 2024, approved permits for international students are down by almost one-third for UW as compared to the same time in 2023.

During the most recent Senate and Board of Governors meetings, it was calculated that in the absence of constraint measures, UW could expect a deficit of $75 million. Budgetary adjustments to make up for this shortfall include a massive reduction in university across several university initiatives, services and course offerings.

The impact of these policies on our local international student body will continue to be monitored. However, support is available to help students navigate the immigration system, including access to free immigration services through Waterloo Legal Services. 

Since 2016, Waterloo’s international students have been able to access various services in the International Experience Centre (IEC). These include the Immigration Consulting, International Student Experience, and Global Learning team.

The Immigration Consulting team is supported by seven Regulated Canadian Immigration Consultants dedicated to providing guidance and assistance to international students. “We advise and assist students on all immigration matters,” says Boon Khoo, the manager of the team, “We also educate students…of the updates and work with campus partners to raise awareness.”

However, Khoo also delineated some professional boundaries: “We don’t represent students, but we guide them, we help them navigate through the immigration process and help them to submit their applications.” Consultants also are unable to connect with the IRCC to expedite any applications, although they can request reconsideration for decisions already made. The team also does not enforce or check if student permits are valid and they do not report invalid permits to Immigrations, Refugees, and Citizenship Canada (IRCC), at least not immediately. Reporting is only done biannually, where the team will go through a list of around 8000 international students to confirm enrollment or completion of studies.

The Waterloo Immigration Services Website is updated regularly and simplifies much of the complex information regarding policies and applications. It provides templates and instructional videos to guide users on how to complete various forms. Weekly information sessions are hosted to cover a wide range of topics. Some of these sessions, known as “Ask Me Anything” sessions, allow students to ask questions about new policies or changes and receive clear, detailed explanations. Additionally, daily drop-in times are available from 1:00 PM to 2:00 PM, where students can get answers to their questions without needing an appointment. For those requiring more in-depth assistance, free and confidential one-on-one sessions can also be booked. Additional supports include a secure mailbox service for students who do not have a permanent address in Canada but need one to receive mail. The office also assists with processing authorized leave requests for students who need to take a term off.

These services remain available to graduates for up to two terms after completing their degree.

In recent months, significant changes to Canadian immigration policies have led to new challenges for international students navigating the application processes for study and work permits. Khoo highlights many of the new trends they see in their appointments:

Increased Refusals

A growing trend of refusals is evident in study and work permit applications, both for those applying from outside Canada and for students already within the country. Khoo noted that applicants with academic gaps or part-time enrollment terms face higher rejection rates. Some students have been forced to return to their home countries to reapply for a study permit after being denied an extension. IRCC has become increasingly meticulous in reviewing transcripts and academic records, scrutinizing details to ensure compliance with policies.

Impact on Applications

Recent policy updates have also complicated the application process. As of June 2024, IRCC closed the option to apply for post-graduation work permits at border points, requiring applications to be submitted online. This restriction was extended to co-op work permits in December. These changes have presented additional hurdles for students, particularly those with irregular academic patterns or lapses in enrollment.

Lengthy Processing Times

Delays in processing times have emerged as a major concern. Previously, study permit extensions were processed within a month, but the current timeline is approximately 134 days. Work permit applications now require 154 days, while temporary residence visa applications within Canada, once processed in 14-18 days, now take 50 days.

These extended processing times have created stress and uncertainty for students awaiting decisions that impact their ability to study and work in Canada.

Errors and Confusion

The rapid rollout of multiple policy changes has led to an increase in errors by IRCC, according to Khoo. Mistakes in applications are becoming more common, requiring additional time and effort to resolve. Additionally, confusion among applicants has grown due to incomplete or misleading information about the changes. Many students, worried about missing deadlines or losing eligibility, are making premature or unnecessary applications. For instance, some are seeking to extend study permits that are still valid for several years, driven by fear and misinformation.

While the federal government’s stance aims to address systemic issues such as housing shortages and predatory recruitment, the ripple effects on universities, students and local economies are undeniable. For many institutions, the reliance on international student revenue has become a financial lifeline, and the sudden policy shifts have left them scrambling for alternatives. As the debate continues, it is crucial for all stakeholders — government, institutions, and provinces — to collaborate and find innovative solutions that ensure equitable access to education while safeguarding the long-term viability of the sector.