In an effort to manage temporary resident volumes and align student intake with housing and labor market capacity, the Canadian federal government has implemented significant reforms. From stricter transfer rules to revised financial requirements, here is everything international students and graduates need to know about the current regulations.

1. Changing Schools Now Requires a New Permit

Previously, students changing schools only needed to notify Immigration, Refugees and Citizenship Canada (IRCC) via their online portal. As of late 2024 and early 2025, this process has become much stricter.

• Mandatory New Application: You must now apply for and receive a new study permit before you can switch to a different Designated Learning Institution (DLI).
• Attestation Letters: Since January 2025, students applying to extend their study permit must include a valid Provincial or Territorial Attestation Letter (PAL/TAL).
• PGWP Implications: Students who held study permits prior to November 1, 2024, were exempt from certain strict field-of-study requirements for Post-Graduation Work Permits (PGWPs). Warning: Applying for a new study permit to change schools voids this "grandfathered" status, subjecting you to the new, stricter PGWP rules.

2. Reduced Admissions Targets & Study Permit Caps

The federal government continues to scale back the number of temporary residents entering Canada.

• 2025 Numbers: The target for new study permit issuances was set at 305,900. However, actual data from January to August 2025 shows a significant slowdown, with only 89,430 new permits issued (roughly 29% of the target).
• 2026 Outlook: The cap is tightening further. The Immigration Levels Plan released in November 2025 targets only 155,000 new student admissions for 2026—a drastic 50% reduction compared to the previous year’s target.
• Overall Issuance Cap: The total number of study permits (new + extensions) projected to be issued in 2026 is capped at 408,000, a 7% decrease from 2025.

3. Spousal Open Work Permit Restrictions

Eligibility for Spousal Open Work Permits (SOWP) was tightened effectively January 21, 2025. Spouses of international students are now only eligible for an open work permit if the student is enrolled in:

• A Doctoral degree program;
• A Master’s degree program that is 16 months or longer; or
• Specific professional degree programs in engineering, education, or healthcare.

Note: Spouses of students in shorter master’s programs or general undergraduate programs are generally no longer eligible.

4. Exemptions & Perks for Master’s and PhD Students

While general admissions are shrinking, Canada is prioritizing advanced degree students.

• Cap Exemption (Effective Jan 1, 2026): Master’s and Doctoral students at public institutions will be exempt from the study permit cap. Consequently, they will not require a Provincial Attestation Letter (PAL) to apply.
• Expedited Processing: Since November 6, 2025, Doctoral students applying from outside Canada are eligible for two-week processing times. This speed also applies to accompanying family members (spouses/children) if they submit their applications simultaneously.

5. Financial Requirement Increases

To ensure students can afford life in Canada, the "Cost of Living" financial requirement was raised on September 1, 2025.

• New Amount: A single applicant must now show proof of $22,895 (CAD) in available funds.
• Exclusions: This amount is for living expenses only; it is in addition to tuition fees and travel costs.
• The requirement scales up for every additional family member accompanying the student.

6. Post-Graduation Work Permit (PGWP) Updates

Field of Study Requirements To align with labor shortages, new eligibility rules were introduced. While degree students (Bachelor’s, Master’s, PhD) remain largely exempt, other students must graduate from programs linked to in-demand occupations.

• June 2025 Update: IRCC revised the list of eligible programs. The "Transport" category was notably removed.

• Grace Period: The actual removal of eligibility for certain programs has been postponed to early 2026. Currently, 178 programs remain temporarily eligible pending the final update.

Crucial Application Tip: The "Merged PDF" Fix A technical limitation in the IRCC portal has caused rejections for some PGWP applicants. The system does not have dedicated upload slots for the newly required proof of Language Results and Field of Study.

• The Fix: Applicants must combine these proofs into a single file (e.g., merge them into one PDF with your completion letter or client info) to ensure the officer receives all necessary documentation.