Immigration, Refugees and Citizenship Canada (IRCC) made a major shift in its immigration policies by suspending its much-celebrated Student Direct Stream (SDS) programme for international students. This move effectively ended a popular pathway for applicants from 14 countries, including India, Pakistan, and the Philippines, who had previously benefitted from expedited processing times and higher approval rates under the SDS.
The cancellation of the SDS stream is part of a broader strategy by the Canadian government to regulate the influx of international students and manage growing pressure on the country’s housing and social services. The move has significant implications for students, particularly from India, who have relied on the stream for faster visa processing and higher chances of approval. With new measures set to control the number of study permits, including a cap of 437,000 new study permits for 2025, Indian applicants are now facing increased challenges in their pursuit of Canadian education.
The End of a Streamlined Process
Introduced in 2018, the SDS programme was designed to streamline the study permit process for students from select countries. It allowed applicants to benefit from faster processing times — often just 20 days — if they met certain criteria, including proof of financial stability (via a Guaranteed Investment Certificate, or GIC), language proficiency (through a higher score in IELTS or TEF), and a confirmed letter of acceptance from a Canadian institution. Under SDS, applicants had an approval rate of nearly 95%, far higher than the standard application process, which could take weeks or even months.
However, the end of the SDS programme reflects broader changes in Canadian immigration policy. The federal government’s decision to limit the number of study permits issued each year is part of an effort to stabilise the country’s foreign student population, which has grown rapidly in recent years. With a record 807,000 study visa holders in 2023 and increasing pressure on housing and public services, Canada has introduced several reforms, which now place stricter academic and language requirements on students, as well as limits on work permits for their spouses.
Saurabh Arora, Founder and CEO of University Living, a platform helping students with their study abroad applications, commented on the impact of this change, saying, “The recent measures Canada is taking, including tighter immigration caps and increased restrictions, appear to prioritise high-quality students aiming for globally renowned institutions. We will need to take a ‘wait and watch’ approach as upcoming events, like the Canadian elections in 2025, may influence this stance.” He also suggested that students consider exploring other study destinations like Germany, Ireland, and Singapore, which may offer similar opportunities without the same bureaucratic hurdles.
Impact on Indian Students
For Indian students, who have constituted the largest group of international students in Canada in recent years, this policy shift is particularly significant. In 2023, nearly 70% of all Indian student visa applicants used the SDS stream. With the programme now suspended, these students will have to rely on the regular application process, which historically has had much slower processing times and lower approval rates. Here’s a look at how this change will affect Indian applicants:
Increased Processing Time: The most immediate effect on Indian students will be longer processing times. Under the SDS programme, applications were processed in about 20 days, but without this expedited system, students now face an average processing time of 8 weeks, which is a significant delay. For students planning to start their studies in Canada, this means they will need to apply well in advance and face uncertainty about their visa status.
Lower Approval Rates: Another key concern is the reduced approval rate for Indian applicants. Under SDS, the approval rate for Indian students was consistently higher, reaching as much as 73% in early 2023. In contrast, those applying through the regular stream had approval rates as low as 10%. With the loss of the SDS route, Indian students will now face tougher scrutiny, potentially reducing their chances of receiving a study permit.
Increased Financial Proof Requirements: In addition to longer processing times and lower approval rates, students will now need to meet stricter financial requirements. The Canadian government has raised the cost-of-living requirement for international students, further complicating the financial burden for many applicants. While students under the SDS programme were already required to demonstrate the ability to pay for their tuition and living expenses, the new regulations are expected to be even more stringent. This could pose a particular challenge for students from lower-income families.
Reduced Work Opportunities for Spouses: One of the most overlooked consequences of the SDS suspension is the impact on spouses of international students. Under the previous rules, spouses of students in the SDS programme were eligible for open work permits, allowing them to support their families while living in Canada. However, with the new policy revisions, this benefit has been limited. The reduction in work permits for spouses will add to the financial strain on Indian students and their families, making Canada a less attractive destination for those seeking to study while also providing for their loved ones.
Canada’s Broader Immigration Strategy
The changes to the student visa system are not just about reducing the number of international students. Canada’s immigration overhaul also includes new caps on the number of study permits issued in 2025, which will be limited to 437,000, including all educational levels, from undergraduate to postgraduate. For reference, in 2023, Canada issued 485,000 study permits, meaning the new cap represents a noticeable reduction.
Furthermore, Canada is also implementing stricter eligibility requirements for students seeking a Post-Graduation Work Permit (PGWP), which allows international students to gain work experience after completing their studies. These new eligibility criteria include more stringent language and field of study requirements, which may disqualify many potential applicants.
In addition to these regulations, the Canadian government is reducing the availability of multiple-entry visas, which have been commonly used by international students to enter and exit Canada during their study periods. This change will make it more difficult for students to travel back and forth between their home country and Canada.
Diplomatic Row and Its Impact
The timing of these changes is also significant in the context of growing diplomatic tensions between India and Canada. Recent months have seen a decline in relations between the two countries, with issues such as trade disputes and political differences coming to the fore. This has raised concerns among Indian students who view Canada as a top destination for higher education.
Aritra Ghosal, Founder and Director of OneStep Global, noted, “Canada’s decision to terminate the Student Direct Stream (SDS) programme, which has been a crucial fast-track visa pathway for Indian students, will undoubtedly impact students’ plans and preferences. While the exact reasons behind this change are not entirely clear, it may be connected to broader immigration policy adjustments or an effort to manage the volume of applications amid the current diplomatic tensions.”
This shift in Canada’s immigration policies also reflects growing concerns within the country about the strain placed on its housing market by the influx of international students. There are mounting concerns that the rapid growth in the student population is contributing to rising rents and overstretched public services, leading to frustration among local residents.
