Canada Immigration News 2025: Major Updates for Students & PGWP
What Changed for International Students and PGWP Holders in Canada in 2025?
Canada has long been a top destination for international students, and 2025 brought a wave of policy updates that significantly impact both current and prospective students. From changes to study permit rules to Post-Graduation Work Permit (PGWP) eligibility, there’s a lot to unpack. Whether you’re planning to study in Canada, are already here on a study permit, or are eyeing a PGWP after graduation, these updates are important to understand.
Key Highlights
- New rules now require a new study permit (and sometimes a PAL/TAL) before changing schools.
- Spousal open work permits are now limited to specific graduate and professional programs.
- Study permit caps were introduced and lowered for 2025 and 2026.
- Graduate students are exempt from study permit caps starting in 2026.
- PGWP eligibility now depends on your field of study—some programs no longer qualify.
- Cost of living requirements were raised for all international students.
New Rules for Changing Schools in Canada
As of January 2025, international students in Canada must apply and receive approval for a new study permit before transferring to a different designated learning institution (DLI). This is a major shift from the previous process, which only required students to notify Immigration, Refugees and Citizenship Canada (IRCC) through their online account.
On top of that, students now need to include a valid Provincial or Territorial Attestation Letter (PAL/TAL) if they’re applying for a study permit extension. For those who were accepted to a new school in Winter or Spring 2025, IRCC introduced transitional measures that allowed them to start at their new school while their permit was still being processed—though this flexibility ended on May 1, 2025.
One important note: If you applied for your original study permit before November 1, 2024, you may be exempt from new PGWP field of study rules—but switching schools and reapplying for a new permit could remove that exemption. So timing really matters here.
Restrictions on Spousal Open Work Permits
Effective January 21, 2025, the IRCC tightened the eligibility for Spousal Open Work Permits (SOWPs). Now, only spouses or common-law partners of international students enrolled in the following programs are eligible:
- Master’s programs lasting 16 months or longer
- Doctoral programs
- Certain professional programs in healthcare, education, or engineering
This is a significant change from previous rules, where even shorter master’s programs could qualify a spouse for a work permit. So, if you’re bringing your family with you to Canada, it’s critical to ensure your program qualifies under the updated guidelines.
Study Permit Cap Reduced
In an effort to ease pressure on housing and social services, Canada introduced a national study permit cap for 2025. The total number of processed applications was limited to 550,162, with a target of issuing only 437,000 study permits. Of that, just 305,900 permits were reserved for new student arrivals.
By August 2025, only 89,430 new study permits had been issued—far below the annual target. Looking ahead, the cap for 2026 is expected to drop even further to 408,000 permits, continuing the downward trend in temporary resident levels.
Good News: More Flexibility for Graduate Students
There’s a silver lining for students pursuing advanced degrees. As of January 1, 2026, those applying for master’s or doctoral programs at public institutions will be exempt from the study permit cap. That means no need for a PAL/TAL and no worries about whether Canada has already hit its cap for the year.
This makes it easier—and potentially more affordable—for graduate students to secure a study permit, especially since some schools require a non-refundable deposit before issuing a PAL.
Fast-Tracked Processing for Doctoral Students
Another exciting update: Starting November 6, 2025, doctoral students can benefit from two-week processing times for their study permit applications. To qualify, you need to:
- Be applying from outside Canada
- Submit your application online
- Be enrolled in a PhD-level program
Even better—your family members can benefit too. If they apply at the same time as you for their own visitor visa, work permit, or study permit, their applications are also eligible for fast-tracking.
PGWP Eligibility: Field of Study Matters More Than Ever
Back in 2024, IRCC rolled out new rules linking PGWP eligibility to your field of study. Students in bachelor’s, master’s, and doctoral programs remain exempt, but others need to complete programs tied to occupations with long-term labour shortages—such as those under Express Entry.
In June 2025, the list of eligible programs was overhauled. Some fields were added, others removed, and the entire “Transport” category was eliminated. While IRCC postponed the removal of ineligible programs until early 2026, only 178 programs remain PGWP-eligible for now.
So, before you commit to a program, make sure it qualifies under the updated PGWP rules. This is especially important if your goal is to work in Canada after graduation.
Cost of Living Requirements Increased
Starting September 1, 2025, the minimum cost of living requirement for international students increased. For a single student, you now need to show at least $22,895 in available funds (not including tuition or travel costs). This is up from the previous amount of $20,635.
The required amount goes up if you’re bringing family members with you. These updated financial requirements apply across all provinces and territories except Quebec, and they’re reviewed annually by the Canadian government.
Fewer Student Admissions in Immigration Levels Plan
Canada’s 2026–2028 Immigration Levels Plan reflects a continued effort to limit the number of temporary residents. The government aims to admit just 155,000 new international students in 2026—a nearly 50% drop from 2025’s target.
This change is in line with broader government strategies to manage population growth and infrastructure strain, especially in major urban centres.
Common PGWP Application Mistake—and How to Avoid It
In 2024, IRCC introduced new PGWP requirements, including language proficiency and field-of-study documentation. But there was a catch—many applicants had their applications refused because there was no dedicated place to upload these documents.
IRCC has since clarified that you should combine both documents into a single PDF and upload it with your application. It’s a simple fix, but one that could save you from unnecessary delays or denials.
Final Thoughts
Studying in Canada continues to offer incredible opportunities, but the landscape is evolving quickly. Whether you’re just starting your journey or planning your next steps after graduation, it’s more important than ever to stay informed and plan ahead.
If you’re considering settling in Canada after your studies, programs like the Manitoba Provincial Nominee Program (MPNP) can offer a great pathway to permanent residency.
Need help navigating your options? Take the next step toward your Canadian education and future—get in touch with us for guidance tailored to your goals.
