Canada Student Permit Cuts Hit Conestoga College: What It Means for Indian Students in 2026?

Conestoga College, once one of Canada’s fastest-growing destinations for international students, is facing a dramatic slowdown after new study permit approvals were reduced by 97% in early 2025. The drop follows Canada’s federal decision to cap international student permits amid housing and infrastructure pressures.

Between January and June 2025, only 540 new international study permits were approved for Conestoga College. During the same period in 2023, the college had received 17,600 approvals, highlighting the scale of the decline.

Why did the Drop Happen?

The Canadian government began tightening international student numbers in 2024, citing:

• Housing shortages
• Strain on public services
• Rapid growth in international enrolment

Conestoga was among the institutions most affected because it had become heavily dependent on international students. By mid-2024, almost 90% of its enrollment consisted of students from abroad, who typically pay two to four times as much tuition as domestic students.

How Conestoga College Is Responding?

With fewer new international students, Conestoga College is making significant changes:

Federal Cap Triggers Program and Campus Closures

After Canada introduced new policies in 2024 and tightened them further in 2025, the number of international students has dropped sharply. As a result, Conestoga College has shut down its downtown Kitchener campus (not the Doon campus), which once served over 3,000 students, as well as another campus in Brantford. The college has also discontinued at least 80 programs, many of which were popular among international students because they offered eligibility for a three-year post-graduation work permit after a one-year diploma.

Staff Reductions and Financial Pressure

• The college has reduced its workforce by about 1,800 faculty and staff compared to the previous year.
• Layoffs included 191 support staff positions.
• The institution now expects an operating deficit after several years of surpluses.

Shift Toward Domestic Students

• The college added 754 Canadian students in the latest spring term, a 27% increase.
• However, this gain is small compared to the loss of over 14,000 international students.

New Tuition Policies for International Students

Starting January 2026:

• International students who repeat or miss courses will pay full international tuition rates.
• Earlier, some were allowed to retake courses at lower domestic rates.

Impact on Indian Students

Indian students make up a large share of applicants to Canadian colleges, including Conestoga. The sudden drop in permit approvals signals a major shift in Canada’s study-abroad landscape.

Key takeaways for Indian applicants:

• Fewer approvals: Study permits are harder to obtain, especially for colleges with high international enrolment.
• Stricter policies: Immigration and financial scrutiny have increased.
• Higher costs: New tuition rules may raise overall expenses if students need to retake courses.
• Program stability concerns: Staff cuts and labour disputes could affect campus services.

What Indian Students Should Do in 2026?

Students willing to study in Canada in 2026 can consider the following to be on the safer side:

• Apply early and ensure that your visa documentation is strong and complete.
• Consider universities or colleges with more balanced domestic-international ratios.
• Compare options in other countries like the UK, Australia, or parts of Europe.
• Budget carefully, including for course repeats and living costs.

Explore: Courses offered by Conestoga College

A Changing Canadian Study-Abroad Landscape

Conestoga’s situation reflects a broader shift in Canada’s international education strategy. Institutions that relied heavily on international students are now adjusting to stricter permit limits, while students must navigate a more competitive and regulated admissions environment.

For Indian families planning for 2026 and beyond, the message is clear: Canada remains a top destination, but the rules and risks have changed, making careful planning more important than ever.