Canada Rejects Nearly Two in Three Study Permit Applicants in 2025

Canada, long regarded as one of the world's most welcoming destinations for international students, is now seeing record-high rejection rates for study permit applications. According to recent data, nearly two out of every three applicants were denied in early 2025, marking the steepest refusal rate the country has seen in over a decade.

The surge in refusals follows policy changes by Immigration, Refugees and Citizenship Canada IRCC, as the federal government tightens controls on the flow of international students. 

Officials argue that the measures are necessary to manage housing shortages, ease pressure on public services, and ensure that institutions meet quality standards. But for many prospective students and institutions, the consequences are proving severe.

A Sharp Increase in Refusals

The numbers tell a striking story. In 2023, the overall refusal rate for study permits stood at 38%. By 2024, it had jumped to 52%. This year, it has reached nearly 66%, a figure that has left universities, colleges, and student recruitment agencies scrambling to adapt.

ApplyBoard, a leading international student platform, reports that new permit approvals dropped by 45% in 2024 alone, surpassing the government's intended 35% reduction. 

Early data from 2025 indicate that approvals are falling even further, with fewer than 31,000 permits issued in the first four months, a 33% approval rate. At this pace, projections suggest only 124,000–207,000 new permits will be granted this year, levels not seen since 2018.

Why the Crackdown?

The Canadian government has cited several key reasons for the tougher stance:

• Housing shortages: Canada's rental market has been under intense strain, with international students often blamed for driving up demand in cities like Toronto, Vancouver, and Montreal.
• Institutional quality concerns: Officials have criticized some private colleges for expanding too aggressively and enrolling high volumes of international students without providing adequate support.
• Economic and political pressure: As the cost of living rises, public sentiment has shifted, with policymakers under pressure to balance immigration with domestic needs.

In January 2024, the government introduced a national cap on new study permits. This was followed by stricter documentation requirements, including proof of higher financial capacity to ensure students can afford tuition and living expenses.

Impact on Students and Institutions

The consequences are wide-ranging:

• For students, the path to Canada has become far less certain. Many applicants from major sending countries, such as India, Nigeria, Bangladesh, and the Philippines, are experiencing higher rejection rates, prompting them to reconsider their study destinations, including the UK, Australia, or Germany.
• For institutions, notably smaller colleges and private providers, the decline in approvals is resulting in significant enrollment losses. Universities are less affected but still anticipate drops in revenue from tuition fees, which play a crucial role in funding programs and research.
• For recruitment agencies, the unpredictability has disrupted business models built around Canada's previously welcoming policies.

Appeals and Overturned Decisions

Despite the bleak numbers, some students are successfully fighting back against refusals. BorderPass, a Canadian legal-tech firm, claims to have overturned nearly 80% of the refusals it has challenged. Cases often involve errors in assessing students' intent, financials, or documentation.

At Thompson Rivers University, students who were initially rejected managed to win appeals, highlighting that not all refusals are final. 

Experts advise students to review their applications carefully, seek legal support if needed, and avoid assuming that rejection is the end of the road.

The Global Ripple Effect

Canada's tougher stance is reshaping global student mobility. For years, the country was viewed as a safe, affordable, and immigration-friendly alternative to the United States and the United Kingdom. Now, with approvals falling and caps in place, students are diversifying their options.

Australia and the UK, both of which have also introduced restrictions, may see some spillover, but emerging destinations such as Germany, Ireland, and the Netherlands are expected to benefit.

Meanwhile, education consultants warn that Canada risks damaging its reputation as a top-tier study destination. "If students lose confidence in Canada's openness and predictability, they'll take their ambitions elsewhere," one international recruiter noted.

What Lies Ahead?

The Canadian government insists the new measures are temporary, designed to "reset" the system and curb unsustainable growth. Still, with refusal rates at unprecedented levels, students and institutions alike are bracing for a challenging year.

Experts suggest that Canada's international education sector will undergo a structural shift, characterized by a decrease in the overall number of students admitted, a greater emphasis on institutional quality, and more selective approvals targeting students with higher financial means and clearer post-graduation plans.

Whether this results in a more sustainable system or long-term damage to Canada's global reputation remains to be seen.