Introduction
Canada has recently made a significant announcement that will have a substantial impact on foreign students. The country has decided to implement a new cap on the number of students allowed to enter Canada, reducing the intake by almost 35%. The reason behind this decision is to alleviate the pressure on Canada’s housing market, which has become increasingly unaffordable due to a spike in immigration. In 2023, there were over 1 million international students in Canada, with Indians accounting for 37% of the total. This blog will explore how this new cap will work and its potential implications for Indian students planning to study in Canada.
Canada as a Top Destination for Foreign Students
Canada has long been a favored destination for international students due to its affordable education, high quality of life, low cost of living, and numerous job opportunities. However, this year, Canada has decided to implement a different plan by capping the issuance of student visas by approximately 35%.
The Temporary Visa Cap and Its Allocation
The visa cap will be in effect for two years, starting in 2024. Under this new system, Canada will be able to issue a total of 364,000 student visas. Each province will receive a specific allocation based on two factors: the population of the area and the current student intake. It will then be up to the provinces to determine how to distribute these visas among their respective colleges and universities.
Additional Changes to Student Visas
In addition to the visa cap, Canada is also implementing new rules regarding post-graduate work permits. Previously, it was relatively easy for students to obtain these permits, making Canada an attractive option for those seeking permanent residency. However, Canada is now capping the issuance of work permits in order to encourage students to return to their home countries. Under the new rules, only individuals pursuing Master’s or postdoctoral programs will be eligible for work permits, and the duration of these permits will be limited to three years. Furthermore, spouses of international students will no longer be eligible for work permits.
The Reason Behind the Crackdown
The recent housing crisis in Canada has prompted the government to take action. The influx of students has led to a shortage of apartments, causing rents to skyrocket by 22% in the past two years. Home prices have also become unaffordable, with an average price of $550,000. As a result, finding rental apartments has become increasingly difficult. These housing issues have had a negative impact on the popularity of Prime Minister Justin Trudeau, especially with the upcoming elections in 2025. It is believed that the current cap on student visas is a response to this housing crisis and an attempt to address the concerns of Canadian citizens.
Impact on Canada’s Economy
Canada has always maintained an open immigration policy to fill job vacancies and replace the aging workforce. International students contribute significantly to the country’s economy, with an annual contribution of $16.4 billion. Canadian banks also benefit from these students, as each international student is required to have a Guaranteed Investment Certificate (GIC) worth more than 20,000 Canadian dollars to cover their living expenses. The new visa cap and reduced intake of foreign students will undoubtedly have an impact on the economy. It is expected to affect businesses, particularly the restaurant and retail sectors. Students currently make up 4.6% of the 1.1 million workers in the food industry. Many businesses have already expressed concerns about potential labor shortages.
Impact on Indian Students
Indians represent a significant portion of all foreign students in Canada, accounting for 37% of the total. Approximately 320,000 Indians are already living in Canada on student visas. With the new cap, it will undoubtedly become more challenging for Indian students to obtain visas and pursue their studies in Canada. This restriction may result in Indian students missing out on valuable opportunities. While the visa cap may help Canada preserve its resources and address the housing crisis, it may impact the country’s position as a top destination for international students. Indian students, in particular, may be motivated to explore alternative study destinations.
Conclusion
Canada’s decision to implement a new cap on foreign student intake will undoubtedly have a significant impact on the country’s education system, economy, and international standing. The two-year visa cap, along with other restrictions, aims to address the housing crisis and alleviate the pressure on the Canadian housing market. However, it remains to be seen how this policy change will ultimately shape the landscape of international education in Canada and the choices made by aspiring students worldwide.