Study Permit Cap May Exacerbate Challenges for Some Ontario Universities

On January 22, 2024, the Government of Canada announced an intake cap on international student permit applications for a period of two years, with the aim of improving the international student experience while stabilizing student growth and alleviating pressure on housing, health care, and other services in Canada. The cap is expected to result in approximately 360,000 approved study permits, which would represent a roughly 35% decline from 2023. The Government plans to determine the size of the cap for 2025 at the end of this year.

“Ontario post-secondary institutions will likely see a larger negative impact from this announcement in favour of a more equitable distribution of international student intake,” said Cheryl Saldanha, Assistant Vice President, Public Finance at Morningstar DBRS. “The cap on international students will further add to the financial pressures that Ontario universities face, disproportionately affecting those with weaker academic profiles and further reducing their already-limited revenue flexibility.”