In 2025, Canada introduced major changes for international students, implementing significant immigration and education policy updates that directly impact international students and recent graduates. These changes affect study permits, school transfers, family work permits, admission caps, financial requirements, and Post-Graduation Work Permit (PGWP) eligibility.
Whether you are planning to study in Canada, already studying on a permit, or preparing to apply for a PGWP after graduation, understanding these changes is critical to avoiding delays, refusals, or missed opportunities.
This article provides a clear breakdown of the most important developments in 2025 and explains what they mean for international students.
New Rules for Changing Schools (Designated Learning Institutions)
In late 2024, Immigration, Refugees and Citizenship Canada (IRCC) introduced a significant rule change requiring international students to apply for and obtain approval for a new study permit before transferring to a different Designated Learning Institution (DLI). Previously, students could switch schools simply by notifying IRCC through their online account.
Building on this, new rules introduced in January 2025 require students to submit a valid Provincial or Territorial Attestation Letter (PAL/TAL) when applying for a study permit extension related to a school transfer.
To ease the transition, IRCC implemented temporary measures allowing students accepted into a new institution for the Winter or Spring 2025 terms to begin studying while their new permit application was still being processed. This interim policy remained in effect until May 1, 2025. These changes mean students must carefully plan school transfers, account for study permit processing times, and ensure continued compliance with immigration rules, including those related to International Experience Canada (IEC) for students and graduates who may later explore temporary work opportunities under IEC programs.
Importantly, students aiming for a PGWP should note that those who applied for their initial study permit before November 1, 2024, may be exempt from certain field-of-study requirements. Applying for a new study permit could remove that exemption.
Currently, all international students must remain enrolled in the DLI listed on their study permit.
Restrictions on Open Work Permits for Spouses of International Students
Another major policy shift took effect on January 21, 2025, significantly narrowing eligibility for spousal open work permits (SOWPs).
From this date onward, only spouses or common-law partners of students enrolled in the following programs are eligible:
- Master’s programs that are 16 months or longer
- Doctoral (PhD) programs
- Select professional programs in healthcare, education, or engineering
Previously, spouses could qualify for an open work permit even if the student’s master’s program was shorter than 16 months. This change has important implications for families planning to study in Canada together.
Reduction in Canada’s Study Permit Cap for 2025
In January 2025, the federal government announced a reduced study permit cap, one of the major changes for international students that year. IRCC stated it would review up to 550,162 study permit applications from January 22 through December 31, 2025. From this total, the government anticipated issuing approximately 437,000 study permits, marking a 10% decrease compared to 2024, with only 305,900 permits reserved for newly arriving international students.
By the end of August 2025, only 89,430 new study permits had been approved—representing less than one-third (29%) of the yearly target. This sharp slowdown reflects the Major Changes for International Students introduced since 2024, aimed at reducing the number of temporary residents and easing pressure on Canada’s housing market and public services.
In November 2025, IRCC further confirmed its approach by announcing the 2026 study permit cap, with plans to issue 408,000 permits, a 7% reduction from the 2025 target.
Increased Flexibility for Master’s and Doctoral Students
A positive development for graduate students was announced in November 2025. Starting January 1, 2026, international students enrolled in master’s and doctoral programs at public institutions will be exempt from the study permit cap.
This means:
- No PAL/TAL is required
- Applications can be submitted even if the cap has been reached
- Processing may be faster and more predictable
This change also reduces upfront financial pressure, as some institutions require deposits to secure enrollment.
Two-Week Study Permit Processing for Doctoral Students
From November 6, 2025, IRCC introduced expedited two-week processing for eligible doctoral students applying for study permits from outside Canada.
To qualify, applicants must:
- Be enrolled in a doctoral degree program
- Apply online
- Submit their application from outside Canada
Eligible family members included in the same application—such as spouses and dependent children—may also benefit from faster processing for their visitor visas, work permits, or study permits.
Major Changes to Field of Study Requirements for PGWP Eligibility
In 2024, as part of the major changes for international students, IRCC introduced a field-of-study requirement for PGWP eligibility. Under this policy, students enrolled in non-exempt programs must complete a program in a field linked to occupations facing long-term labour shortages.
Bachelor’s, master’s, and doctoral degree programs remain exempt from these requirements.
In June 2025, IRCC announced a major overhaul of the eligible program list. Many programs were added, while others—including the entire Transport category—were initially removed.
However, in July 2025, IRCC delayed the removal of programs until early 2026, leaving 178 programs temporarily PGWP-eligible. Students planning to work in Canada after graduation should verify PGWP eligibility before applying.
Updated Cost of Living Requirement for International Students
Starting September 1, 2025, Canada increased its minimum proof-of-funds requirement for international students.
For a single student, required funds—excluding tuition and travel costs—increased to $22,895, up from $20,635. This amount rises based on the number of accompanying family members.
These requirements apply to all provinces and territories outside Quebec and are updated annually.
Significant Reduction in Student Admissions for 2026
In November 2025, the federal government released its 2026–2028 Immigration Levels Plan, setting a target of 155,000 new international students in 2026.
This represents nearly a 50% reduction compared to 2025 targets and continues the government’s strategy of reducing temporary resident numbers across Canada.
Important Update to Help Students Avoid PGWP Application Refusals
In 2024, IRCC introduced language test and field-of-study documentation requirements for certain PGWP applicants. However, due to system limitations, the application portal initially lacked a dedicated upload section for these documents. Contact Us at tembohimmigration if you need guidance on preparing and submitting the required documents correctly to avoid delays or refusals.
As a result, many applicants unknowingly omitted required proof, leading to application refusals. In December 2025, IRCC clarified the process by instructing applicants to combine all required documents into a single file, such as a merged PDF, and upload it with their PGWP application.
