Canada is changing the direction of its international student policy, with greater emphasis being placed on attracting students pursuing master’s and doctoral degrees. The shift comes as the country continues to reduce the overall number of new international students entering Canada through tighter study permit controls and lower admission targets.
According to recent data, master’s and doctoral students accounted for 21 percent of newly issued study permits during the first half of 2026. This was an increase from 12 percent during the corresponding period in 2025. The increase indicates that graduate-level students are becoming a larger part of Canada’s international education intake even as the overall number of new international students declines.
The change is part of a broader strategy by the Canadian government to make its international student programme more sustainable while continuing to attract students who can contribute to research, innovation and the economy.
Canada introduced an international student cap in 2024 and has subsequently reduced its targets for new students. For 2026, Immigration, Refugees and Citizenship Canada expects to issue up to 408,000 study permits. This figure includes 155,000 permits for newly arriving international students and 253,000 extensions for students who are already in Canada or returning to their studies.
The government has also created a specific advantage for eligible graduate students. From January 1, 2026, master’s and doctoral students enrolled at public designated learning institutions are exempt from the Provincial Attestation Letter or Territorial Attestation Letter requirement for their study permit applications.
The exemption is intended to recognise the contribution of graduate students to Canada’s economic growth and innovation. The government has identified these students as an important part of its strategy to attract international talent, particularly people with advanced academic and research skills.
The change is taking place against a significant decline in new international student arrivals. Official Canadian data shows that 22,405 new student arrivals were recorded between January and June 2026. This represented a 67 percent decline compared with the same period in 2024. Canada has said the reduction is part of its effort to bring the temporary population to more sustainable levels.
The decline has been particularly visible in the overall number of study permit holders. Canadian government data showed that approximately 691,215 study permit holders were in the country at the end of 2025, compared with about 928,430 at the end of 2024. The government has linked the reduction to its efforts to manage international student numbers and address pressures on housing, infrastructure and public services.
At the same time, Canada is not withdrawing from international education altogether. Instead, the policy is increasingly focused on the type of students the country wants to attract. Master’s and doctoral students are being given greater consideration because of their potential contribution to research, innovation, highly skilled employment and the wider economy.
For international students, this means that Canada’s study permit environment is becoming more selective. Students applying for undergraduate programmes, private institutions and other categories may face tighter controls depending on their programme, institution and province. Graduate students at eligible public institutions, meanwhile, may benefit from specific policy exemptions.
The Canadian government has also introduced stronger checks on admission documents and increased financial requirements for international students. From September 1, 2026, students applying for study permits must demonstrate higher financial resources for living expenses, excluding tuition and transportation costs. The changes are designed to ensure that students can support themselves without relying excessively on employment during their studies.
Canada has also strengthened the verification of acceptance documents as part of its efforts to reduce fraud in the international student system. These measures are being implemented alongside lower student intake targets and provincial allocations.
For Indian students, who have traditionally represented one of the largest groups of international students in Canada, the policy changes are particularly important. Prospective students now need to pay closer attention to their chosen programme, institution, financial requirements and study permit documentation.
Students planning to pursue a master’s or doctoral degree may find the current policy environment comparatively favourable in some respects, particularly because eligible graduate students at public designated learning institutions are exempt from the PAL or TAL requirement. However, this exemption does not mean that approval of a study permit is automatic. Applicants must still satisfy the other requirements established by Canadian immigration authorities.
The broader trend suggests that Canada is moving from a policy focused on expanding international student numbers to one that places greater emphasis on sustainability and attracting students with advanced skills.
The increase in the share of master’s and PhD students therefore does not mean that Canada is increasing its overall international student intake. Instead, it reflects a shift in the composition of the students being admitted while total new arrivals continue to fall.
For prospective students, the message is clear. Canada continues to offer opportunities for international education, particularly at the graduate level, but applicants must carefully review the latest immigration and study permit rules before making decisions. Requirements can change, and eligibility for exemptions depends on the programme and institution.
As Canada continues to balance immigration, education, housing and labour market priorities, master’s and doctoral students are expected to remain an important part of its international talent strategy.