Canada is unlikely to reconsider raising international student numbers despite a critical report that found the policy was poorly designed and leading to unintended consequences.
Canada’s auditor general has identified significant problems with the restrictions the country introduced on study permit applications in January 2024, criticizing the design, monitoring and oversight of the restrictions with “critical weaknesses” in managing their integrity.
The policy’s biggest impact—new international research visas issued by Canada dropped by nearly 90 percent, from 456,690 in 2023 to 50,370 in September 2025—was unprecedented for immigrants, refugees and Canadian citizens, the report found.
Some states were expected to see a 10 percent increase but actually saw a 59 percent or more drop in new study permits approved in 2024 compared to the previous year.
But Alex Usher, president of Higher Education Strategy Associates, said there is little chance that the policy will be revisited in the next two years, because the government credits it with ending the housing crisis as a political issue.
“It’s less that the real goal was not well thought out than that the government chose to go along with the policy with messages that attacked this sector as low-level,” said Usher.
“That damaged the reputation and led to a drop in applications, which, as the report shows, did more damage than the policy itself.”
Usher said the episode showed the “brutal” nature of the Liberal Party’s desire to cling to a majority government.
“If a few institutions have to die, and one already has, for the Liberals to stay in power, that’s fine with them,” said Usher, referring to the closure of the Manitoba Institute of Trades and Technology, which was announced in February.
The report also found that when things go wrong in the system, the department rarely follows up.
About 800 people have been identified as having false information or using forged documents in their applications.
Christopher Worswick, an economics professor at Carleton University in Ottawa, said this shows that the system was not well designed to deal with the large increase seen before the caps were put in place, adding that the international student policy was “ill-conceived and poorly implemented.”
He hoped that the report, and the “unnecessary” damage done to the university sector, might lead to some changes in government policy.
Roopa Trilokekar, an education professor at York University in Toronto, said the caps policy is “highly controversial,” as the federal government responds to mounting public pressure and growing anti-immigration sentiment.
“In this case, the government’s response was not well planned, poorly planned and not adequately communicated,” he said.
“Ignoring the regional implications and the potential damage to Canada’s international reputation represents a critical oversight—one that could be avoided with full and limited, cross-sectional consultation.”
He warned that both state governments and higher education institutions are now facing great uncertainty.
“Institutions are now facing layoffs, program closures, declining enrollment and growing financial problems. The ability of universities to advance their international cooperation strategies has been greatly weakened.”
Audrey Macklin, a law professor at the University of Toronto, said the report revealed some major flaws in the system that treats international students as “fodder.”
He said it was an example of “politics over policy,” with the government “ripping the rug out from under” international students.
