Canada tightens student entry as higher fund requirement, immigration caps kick in

Canada has tightened the financial and immigration requirements facing international students from September, adding another hurdle for aspiring students from Punjab at a time when the country is seeking to substantially reduce its temporary resident population.

Under the revised rules effective September 1, international students applying for a study permit outside Quebec are required to demonstrate that they have at least CAD 23,448 to meet their living expenses. The previous requirement stood at CAD 22,895.

The amount is separate from the funds applicants are expected to demonstrate for their tuition fees and travel expenses, effectively increasing the financial threshold for families planning to send students to Canada.

The change comes alongside a broader reduction in the number of temporary residents Canada intends to admit. Under the country’s 2026–2028 immigration plan, Canada has set a target of 385,000 new temporary resident arrivals in 2026, of which only 155,000 are expected to be new international students.

Immigration, Refugees and Citizenship Canada (IRCC) has said the measures form part of the government’s effort to reduce temporary residents to below five per cent of Canada’s population by the end of 2027.

The tightening is particularly significant for Punjab, where Canada has for years remained one of the most sought-after destinations for higher education and has also been viewed by many families as a pathway to employment and eventual permanent residency.

While prospective students face a more restrictive environment, opportunities remain for some temporary residents who are already established in Canada.

In an Express Entry draw for the Canadian Experience Class held on September 1, the Canadian government issued 2,000 Invitations to Apply (ITAs) to candidates with Canadian work experience. The Comprehensive Ranking System (CRS) cut-off stood at 521, indicating that competition for permanent residency remains high.

Canadian immigration consultants also highlighted the draw on social media, advising applicants with scores close to the cut-off to carefully review their Express Entry profiles and eligibility.

Another potential route has been opened for a limited section of Canada’s existing temporary workforce. The government has proposed a one-time initiative offering permanent residency to as many as 33,000 temporary workers during 2026 and 2027.

The measure is aimed at workers who are already integrated into the Canadian economy and local communities, including those who are employed and contributing through taxes, particularly in areas facing labour requirements.

Taken together, the changes signal a shift in Canada’s approach towards temporary immigration. Rather than allowing continued rapid growth in the number of international students and other temporary residents, the government is increasingly prioritising applicants already contributing to the Canadian economy while restricting fresh inflows.

For families in Punjab considering Canada as a destination, the immediate impact is twofold: studying in the country will require greater financial resources, while the number of available student places is becoming more limited.

For Punjabis already living and working in Canada, the picture is comparatively more favourable, particularly for candidates with competitive CRS scores or those who may become eligible under the temporary worker pathway.

However, people with lower Express Entry scores or work and study permits approaching expiry could face a considerably more uncertain road to permanent residency as Canada moves towards a smaller temporary resident population.