A detailed analysis

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Since 2023 and early this year 2024, much has been said about the reduction in the number of visas for international students who want to come to Canada and the great impact this has on the quality of Canadian education and the right conditions for these same students to stay in the country while pursuing their programs; in fact, Minister Miller has shown his dissatisfaction regarding the low academic quality that has been observed since the rise of what he has called "diploma mills". In this Immiland Canada article, we offer a detailed analysis of the reasons behind the implementation of major changes in student immigration and why Minister Miller is concerned about the quality of education in Canada.

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What does Miller mean by "diploma mills"?

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This designation refers to those establishments offering low-quality education and training, which often have minimal physical infrastructure requirements to house their academic community. Minister Miller's concern centers on the ease with which these educational institutions (companies) come to operate without a traditional campus setup, charging high tuition fees and attracting large numbers of international students, but more alarmingly, in some cases issuing diplomas of questionable quality. In fact, the cap on visas for international students announced on January 22 this year seeks to curb the proliferation of these low-quality establishments, as they end up being a source of good economic activity on the productivity side, but at the expense of low educational standards.

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Limited admission for international students

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Certainly, last January 22, the IRCC generated a significant turnaround in immigration matters for students abroad with a view to study in Canada starting this year 2024. But why did Canada decide to receive fewer students this year?

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Let's understand the context 

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Proposals have been announced since 2023 to establish reforms regarding the influx of international students into the country and its relationship to Canada's housing crisis, making it clear that international students are not the direct cause of this crisis, although it was mentioned that their presence in certain concentrated areas has contributed to a shortage of affordable housing. In addition, some senators met to discuss the challenges associated with Canada's international student program and its relationship to high tuition and education consultant fees imposed by designated learning institutions (DLIs), coupled with limited employment opportunities and the regulation of education agents and private educational institutions.‍ 

All of these were sufficient reasons for the government to take action in a very understandable effort to ensure adequate conditions for receiving foreign students while preserving the recognized quality of education in Canada and resulting in the decision to receive fewer international students.

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What is the housing situation in Canada for international students?

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Housing crisis

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The rapid growth in the number of international students, which has increased in about a decade to over 800,000, has been linked to exacerbated housing shortages and imbalances in the labor market, resulting in the need to control the influx of non-permanent residents and reform graduate work permits. The provinces most impacted by this situation are Ontario, British Columbia and Nova Scotia, as the increased influx of students has impacted the housing supply much more, this has led to increased pressure on the rental market and challenges in providing adequate living arrangements for the growing student population.

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Attempts to address the housing crisis

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To address the challenges posed by the increase in international students, Minister Miller has taken steps that have to do with the financial threshold for prospective students. In December 2023, the required amount of money foreign students were required to demonstrate to the Canadian government for their living expenses for a year of study was CAD 10,000, but this January 1, 2024 it was doubled from CAD 10,000 to over CAD 20,000, this in order to ensure that students will be able to support themselves financially before applying for a visa. In our blog, New threshold for international students' cost of living in Canada we developed this issue in detail. However, the government had already been announcing the possibility of reducing the entry of new international students into the country as an additional measure to fully address the housing crisis. You can learn more about housing and international students in this other blog we wrote in 2023, Is Canada considering imposing a visa cap on international students?

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How will this international student cap impact the economy and revenue stream?

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These limits raise concerns about the economic impact on designated learning institutions, especially colleges and universities that have come to rely on high tuition fees paid by international students. In fact, some institutions argue that they receive insufficient public funding and rely on revenue generated by foreign students to stay afloat. This has led to warnings from certain universities about the possibility of financial difficulties and even bankruptcy.

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Will benefits to employers and labor market dynamics be compromised?

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It is clear that for years educational institutions as well as employers in general have benefited from the influx of international students who are allowed to work up to 40 hours a week; In fact, this flexibility has helped address labor shortages in the country, however, in the face of the announced changes, Minister Miller has stressed the need to ensure that the visa program is aligned with its purpose, and it is possible that students, instead of focusing on their studies, may end up working full time in jobs unrelated to their academic aspirations, such as driving for ride-sharing services, so there will be more diversified movement in the economy, but the purpose may be falling by the wayside. On the other hand, it is natural to think that the fewer international students, the smaller the labor force for different industries.

In the end, the Canadian government's consideration of setting this new limit on the number of international students reflects a multifaceted challenge involving educational standards, housing availability and economic dependencies on tuition fees, among other issues. Finding the right balance will be crucial to maintaining the reputation of Canada's higher education institutions.

At Immiland Canada, we are very attentive to new announcements from the IRCC. If you would like one of our regulated consultants to review your immigration case, we invite you to email us at info@immilandcanada.com. If you would like us to provide you with more information on graduate study programs, post-graduate work permit issuing universities and all things related to education, then visit Immiland Education.

As discussions unfold, it will be interesting to see how policy makers navigate these complexities to create a sustainable and equitable system for both domestic and international students. Thank you for checking in with us.

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With love,

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Immiland

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