Canada exempts certain grad students from 2026 study caps

The update means master’s and PhD students enrolling at public institutions will be exempt from the provincial attestation letter (PAL) requirement and will not be included in federal cap allocations from next year.  

Robert Asselin, CEO of U15 Canada, welcomed the decision as “an important step towards rebuilding Canada’s immigration system in a sustainable manner, focused on attracting top talent and leveraging our reputation as a global destination for excellence”.

Released in the government’s new Immigration Levels Plan, the news follows proposals to slash new student arrivals to Canada by more than half over the next three years, announced in this week’s 2025 Budget proposal that also saw CA$1.7bn allocated for attracting global talent.  

As such, Asselin said the graduate student exemption was “vital to ensure that study permit caps avoid unintentionally limiting Canada’s ability to attract talent in highly competitive fields”. 

CBIE president Larissa Bezo hailed the news a “welcome change folllowing much advocacy from the sector”. She said the approach would support institutional efforts to attract high-quality talent and contribute to Canada’s ambitious research agenda.

“The change will also hopefully facilitate more PAL/TAL allocations for highly skilled talent of interest to Canada in a range of fields below the Master’s level including in applied research, skilled trades, health, social sciences and humanities,” added Bezo.

On top of the cap exemption, doctoral applicants applying from outside of Canada will benefit from a new 14-day study-permit processing standard, including accompanying family members, and IRCC has launched a new webpage aimed at graduate students.  

Stakeholders say the changes signal the government’s intent to position Canada as a graduate student destination, with a particular focus on public universities, as well as a commitment to innovation.

“The new website boasts familiar ‘study and work’ as well as ‘apply with your family’ messaging that was once used more broadly for the entire Canadian post-secondary system,” registered Canadian Immigration Consultant (RCIC) Matthew McDonald told The PIE News.

For McDonald, the biggest benefit of the PAL exemption will be the reduction in universities’ administrative work to help them issue offers more quickly and possibly incentivise applicants to choose Canada over other destinations.

The direction announced yesterday is encouraging. It shows the government is listening to the sector

Philipp Reichert, UBC

“As an institution with a high proportion of international students enrolled in master’s and doctoral programs, these measures reinforce our strategic position, support our research and talent-development mission, and strengthen Canada’s competitiveness in attracting top global graduate students,” said Chris Busch, University of Windsor assistant vice-president of enrolment. 

While more details are still to come, stakeholders have welcomed the pragmatic and long-awaited developments, bringing much needed clarity and stability after nearly two years of policy turbulence for the Canadian sector.

“The exclusion of certain groups of graduate students from the PAL requirement starting in January is a strong signal of support for advanced research and innovation in Canada,” UBC’s director of global engagement, Philipp Reichert, told The PIE.

He welcomed government clarity that the new 155,000 cap refers to new arrivals, not study permit issuances and extensions for existing students, after initial uncertainty following the budget announcement.

As a whole: “The direction announced yesterday is encouraging. It shows the government is listening to the sector and making adjustments that balance policy integrity with Canada’s continued competitiveness in attracting top global talent,” said Reichert.

The new measures align with the government’s stated aim of prioritising economic immigration and bring the system back in line with the initial 2024 caps that excluded PhD and master’s students. Their exemption will also free up allocations for more undergraduate students in the new cap allocations.

In the immigration plan, the government acknowledged graduate students “often play a critical role in research and innovation and go on to remain in Canada permanently”. 

It confirmed policies would prioritise key sectors including emerging technologies, heath care and skilled trades, while pursuing the overall goal of reducing Canada’s temporary population to less than 5% of the total.  

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