Canada Regaining Popularity Among International Students, Data Shows

Recent reports from Keystone Education Group and IDP found that international student interest in Canada is showing signs of recovery after declines in 2024 and 2025. One likely reason is the recent federal policy updates that brought more clarity and stability for master’s and PhD students. 

Despite recent declines in international student arrivals, Canada remains among the top five study destinations in the world. 

Key Takeaways 

• International student searches for Canada increased by 55 percent year-over-year in December 2025 after two years of decline. 

• Interest in Canadian master’s programs surged after new policy exemptions, including removal of PAL/TAL requirements for graduate students. 

• Canada remains a top global study destination, with 14 percent of students ranking it as their first choice. 

• Visa rules and post-study work opportunities are major factors prospective students consider when deciding where to study. 

Why International Student Interest in Canada Fell 

Canada has historically been among the “big four” international study destinations, along with the US, the UK, and Australia. The country’s strong education system, post-graduation work opportunities, and immigration pathways contributed to its attractiveness. 

However, over the last two years, policy decisions led to a drop in Canada’s popularity as a study abroad destination.  

Beginning in 2024, the federal government introduced a series of measures aimed at reducing the number of temporary residents in Canada, including international students. These included: 

• Caps on new study permits 

• Provincial or Territorial Attestation Letter (PAL/TAL) requirements 

• Changes to post-graduation work permit (PGWP) eligibility 

• Restrictions on family members accompanying students 

• Higher financial requirements for study permit applicants 

• Closure of the Student Direct Stream (SDS) which fast-tracked study permits for applicants from 14 countries. 

The frequent policy changes created confusion and uncertainty for students and schools. Moreover, with study permit caps set lower than previous years’ admissions, the study permit approval process became more competitive and refusals soared. 

Previously, many international students saw a Canadian study permit as the first step in the inevitable path to permanent residence. However, when the PGWP eligibility requirements were tightened in late 2024, this pathway became limited and uncertain. Students enrolled in many diploma and certificate programs could no longer count on getting a PGWP after their studies. 

Plus, spousal work permit options were restricted to spouses and partners of master’s and doctoral students. This made it harder for families to move to Canada together. 

Canada also faced growing competition from other countries that were seen as offering more stable immigration and education policies. 

All these factors contributed to Canada missing its international student target for 2025. IRCC had targeted 305,900 new international student arrivals in 2025, but only 115,385 arrived by the end of the year. 

Canada’s Appeal as a Study Destination is Growing Again 

Two new studies suggest that student demand for a Canadian education may be improving. 

According to Keystone Education Group, international student searches for Canada increased by 55 percent year-over-year in December 2025. This increase followed two long years of declining interest. 

The recovery was especially strong among prospective master’s students. Keystone’s data showed that master’s-level searches were still declining in October 2025, down 6 percent compared with the previous year. However, interest surged shortly after a November 2025 policy announcement which exempted graduate students from some of the newly tightened requirements. Under these changes, master’s and PhD students were removed from the 2026 international student cap and no longer needed a PAL/TAL. 

Searches for master’s programs increased by 28 percent in November 2025 and then continued to increase year-on-year. In March 2026, searches were up by 45 percent over March 2025. 

Although the changes largely benefited graduate students, they also signaled an easing of requirements. This stability in Canada’s international education policies seems to have improved confidence among prospective students considering studying in Canada. 

More Students Naming Canada as Their Top Choice 

IDP’s latest Emerging Futures survey also showed a slight increase (1 percent) in the number of students who selected Canada as their first-choice destination. 14 percent of the 5,800 students surveyed across 118 countries and regions picked Canada as their number one choice. In contrast, both the US (8 percent decline) and UK (2 percent decline) saw a drop in popularity as the top study destination. 

The report also showed that students are increasingly comparing multiple countries before making a final decision. In March 2026, 78 percent of students said they were seriously considering more than one study destination, up sharply from previous years. 

Some renewed interest in Canada as a study destination also comes at the expense of the US. The Trump administration has taken a tough stance on international talent and immigration. Over the last year or two, the policy environment in the country has become unpredictable. In August 2025, the US government decided to fix admission periods for F-1 student visa holders, which led to a decline in interest from prospective students. The recent tightening of H-1B visas has also narrowed long-term prospects for students in the US. 

Visa Policies and Long-Term Pathways Matter More 

The IDP survey found that international students are becoming more cautious about visa rules and future immigration pathways when deciding where to study. According to IDP, visa policies are now being used as an “early decision filter,” rather than something students think about later in the process. 

48 percent of the students surveyed by IDP said that post-study work opportunities strongly influence where they study. 43 percent cited financial requirements as a major factor. This explains why Canada’s tighter PGWP rules and higher financial requirements hurt its popularity over the past two years. 

Canada Still Faces Strong Competition

Although interest in Canada appears to be recovering, competition for international students is becoming more intense globally. 

Australia was the top first-choice destination in the IDP survey, with 31 percent of the students surveyed choosing it as their top preference. Countries such as Germany, Ireland, and New Zealand are also attracting students looking for lower costs or easier visa pathways. 

Difficulties in getting a study permit (or student visa) and rising tuition and living costs also impacted plans. The IDP report found that many students are now changing destinations, delaying plans, or abandoning the idea of an international education altogether.  

What This Means for Prospective International Students 

For international students considering Canada, this new data may offer some reassurance after a couple of years of uncertainty. 

Canada still has tighter controls than before, including study permit caps, increased financial requirements, and restrictions on post-graduation and spousal work permits. However, with the recent stability (and even easing) of some of these requirements, student sentiment is improving. 

The fact that student targets have remained stable has also driven student confidence. Canada expects to issue up to 408,000 study permits in 2026, including 155,000 permits for newly arriving international students. 

The latest reports suggest Canada remains highly competitive globally, particularly for students focused on long-term career and immigration opportunities. 

If you’re planning to study in Canada, you should carefully research: 

• Whether your study program qualifies for a PGWP 

• Financial requirements for a study permit 

• Tuition fees and the cost of living in your chosen city 

• Work opportunities in your field after graduation 

• Whether your spouse or partner will be eligible for a work permit while you study 

• Potential pathways to permanent residence and their eligibility requirements. 

A Canadian education can add real value to your academic and professional goals and can help shape your future. Now more than ever, it is important to have a long-term plan with a clear vision of how you will achieve it.