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Study
By Freya Devlin
Posted on November 25, 2025
So, let’s walk through what’s changing, why it matters, and where all these numbers leave you.
The international student cap isn’t new. It arrived in 2024, partly out of necessity. Canada was hosting more than a million study permit holders at the time, and the system was strained. By September 2025, that number dropped to about 725,000 – still huge but heading in the direction IRCC wants.
For 2026, IRCC expects to issue up to 408,000 study permits, including 155,000 newly international arrivals and 253,000 extensions – outlined in the 2026-2028 Immigration Levels Plan. If you’re thinking that sounds lower than before, you’re right. It’s:
However, as of January 1, 2026 Master’s and PhD students at public Designated Learning Institutions (DLIs) no longer need a Provincial Attestation Letter/Territorial Attestation Letter (PAL/TAL). IRCC framed this as a talent-friendly move – supporting innovation and research. Graduate students tend to integrate quickly into Canada’s labour market, and many stay long-term.
Other exempt groups in 2026 include:
Everyone else? They’re still in PAL/TAL territory.
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IRCC split the 408,000 projected permits into four cohorts:
Those 180,000 permits are where things get interesting, because they’re the ones provinces are responsible for managing.
Below is a comparison of non-graduate PAL/TAL-required study permits (expected approvals) in 2025 vs 2026.
These are the expected approved permits. Because not every application is approved (far from it), IRCC also assigns allocations – the maximum number of applications it will accept for processing.
That number is 309,670 across Canada in 2026:
Canada wants its temporary resident population, including international students to be below 5% by the end of 2027. Housing shortages, overwhelmed institutions, and public pressure created an environment where a more controlled system became politically unavoidable.
The cap aims to:
If you talk to students, you’ll hear a mix of relief and anxiety. Relief from grad students who now skip the PAL/TAL process. Anxiety from undergrads and college applicants who wonder if their province will run out of spaces.
If you’re applying for most college or undergraduate programs in 2026, you’ll still need a PAL/TAL. And because provinces get limited allocations, timing matters – early applications may have a better chance of landing within the available spaces.
A few things to keep in mind:
In short, 2026 won’t be impossible, but it will be tighter.
DLIs now have to manage a fixed number of application spaces, so they need to be more selective about which applicants they accept.
Institutions with low approval rates might receive fewer spots. Some colleges, especially those that expanded rapidly over the past decade could face real pressure to adjust. We may even see provinces reshaping their relationships with DLIs, favouring institutions with strong academic outcomes.
Instead of closing its doors, Canada is tightening the system so it runs more predictably. For students planning for 2026, the smartest move is to stay informed, prepare early, and choose your institution with care.
And if you’re already feeling overwhelmed by these changes, you’re not alone. Immigration policy has a way of making even simple decisions feel huge – but understanding the landscape helps you move with confidence.
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