Canadian Universities Face International Student Decline Amid Policy Changes

Canadian universities are grappling with significant declines in international student enrolment, primarily due to stringent immigration policies. According to the latest Global Enrolment Benchmark Survey, a collaboration involving NAFSA, the Oxford Test of English, and Studyportals, Canada recorded the highest proportion of institutions experiencing reduced international enrolments compared to other regions, including the United States.

The survey, which encompasses data from 461 institutions across 63 countries—including 20 Canadian universities—examines enrolment trends from August to October 2025. The findings indicate that 82 per cent of Canadian universities reported a decrease in undergraduate enrolments, while 71 per cent noted a drop in postgraduate enrolments. On average, Canadian universities experienced a sharp decline of 36 per cent in bachelor’s degree enrolments and 35 per cent in postgraduate enrolments, outpacing declines observed in other regions.

According to the report, “Last year’s survey showed a market in transition. This year’s survey shows those early signs have turned into real changes.” The primary factors attributed to this decline are policy and visa restrictions, with 90 per cent of Canadian universities citing “restrictive government policies” as the leading reason for the downturn in enrolment. In contrast, only 15 per cent of institutions pointed to the rising cost of living and tuition fees as contributing factors.

The ongoing changes implemented by the Immigration, Refugees and Citizenship Canada (IRCC), including a national cap on study permits and new proof-of-funds requirements, have raised concerns. The survey notes, “These policy changes have created uncertainty and damaged Canada’s reputation as a reliable study destination.”

While enrolment numbers from major markets like India and China have decreased, universities are witnessing a growing interest from students in Africa and Southeast Asia. To adapt to these shifts, 60 per cent of institutions are planning to diversify their recruitment strategies, targeting these emerging markets.

The challenges posed by declining international student numbers have introduced financial instability for many universities. Consequently, 60 per cent are preparing for budget cuts, and 50 per cent anticipate staffing reductions in 2026. The implications of these trends extend beyond financial pressures, contributing to a record-breaking drop in the population of international students in Canada, a situation that may persist as the IRCC announced new limits on study permits for 2026.

As Canada struggles to attract international students, countries such as the United Kingdom and several European nations are witnessing an uptick in enrolments. This shift underscores the competitive landscape for attracting global talent, placing additional pressure on Canadian institutions to implement effective strategies to reverse the current trend.

In light of these developments, Canadian universities face a pivotal moment, compelled to reassess their international recruitment approaches in order to bolster their enrolment figures and maintain their global standing.