Last Updated On 24 March 2026, 9:48 AM EDT (Toronto Time)
Immigration Minister Lena Metlege Diab has accepted to implement six new recommendations affecting international students in Canada after the Auditor General released a new report on the International Student Program.
“We accept the Auditor General’s recommendations to strengthen follow up where suspected fraud or non-compliance is identified. We will act to improve these processes,” the minister stated in response to the audit findings.
The audit uncovered that approximately 23,500 individuals with expired study permits remain unaccounted for in Canada.
The Canada Border Services Agency could only confirm the departure of about 16,000 out of 39,500 individuals who should have left after their permits expired in 2024.
Table of Contents
The 6 Measures IRCC Will Implement
Immigration, Refugees and Citizenship Canada agreed to five recommendations, one fully and one partially.
These changes will affect how the department processes applications, tracks compliance, and manages fraud cases going forward.
| # | Measure | What It Means For You |
| 1 | Province-specific allocation analysis | Smaller provinces will receive fairer distribution of study permit spaces based on regional approval rates rather than population alone |
| 2 | Mandatory fraud follow-up on flagged applications | All applications flagged by the letter verification system will be investigated before decisions are made |
| 3 | Post-approval fraud response protocol | IRCC will create alerts on immigration files when fraud is discovered after permits are issued and coordinate with enforcement partners |
| 4 | Enhanced scrutiny for Student Direct Stream extensions | Students who entered through the cancelled Student Direct Stream face renewed risk assessment when applying for extensions |
| 5 | Expired permit tracking with border agency | IRCC will annually provide lists of students with expired permits to Canada Border Services Agency for departure verification |
| 6 | Diversification tracking (Partially Agreed) | IRCC will track regional volumes but will not set country-specific targets due to Immigration and Refugee Protection Act principles |
Indian International Students Drop From 51.6% to 8.1%
The composition of Canada’s incoming international student population has shifted dramatically since reforms began.
The cancellation of the Student Direct Stream contributed significantly to this change.
| Source Region | 2023 | 2024 | 2025 |
| India | 51.6% | 33.6% | 8.1% |
| Europe | 3.0% | 8.0% | 21.2% |
| Indo Pacific | 14.0% | 15.9% | 19.4% |
| China | 4.8% | 10.3% | 18.9% |
| Americas and Caribbean | 6.4% | 8.5% | 13.7% |
| Francophone African Countries | 9.2% | 13.6% | 8.7% |
| Non Francophone African Countries | 8.2% | 6.8% | 6.7% |
| Middle East | 2.8% | 3.4% | 3.3% |
IRCC partially agreed to the recommendation on setting diversification goals.
The department stated it will track regional volumes but will not set country or region specific targets because the Immigration and Refugee Protection Act is designed to be country agnostic.
Why These Changes Are Happening Now
The Auditor General of Canada concluded that IRCC was not effectively implementing reforms to the International Student Program.
The audit revealed systemic failures in fraud detection, compliance monitoring, and provincial coordination.
Between 2023 and 2024, the department identified over 153,000 students as potentially non compliant with study permit conditions.
However, IRCC had funding to investigate only 2,000 cases each year. This means more than 98% of flagged cases went uninvestigated due to processing backlogs.
The audit also uncovered 800 confirmed fraud cases where applicants used fake documents or misrepresented information to enter Canada between 2018 and 2023.
The department took no action in any of these cases even after discovering the fraud.
What Happened to the 800 Confirmed Fraud Cases
The audit tracked what happened after IRCC’s risk assessment units identified these fraudulent permit holders.
The results show why the new post approval fraud response protocol is urgently needed.
| What They Did Next | Number | Outcome |
| Applied for study permit extension or work/visitor permit | 501 | 351 approved |
| Applied for permanent residence | 124 | 105 approved |
| Submitted asylum claim | 110 | Pending at IRB |
| Unknown location with no immigration status | 63 | Untracked |
| Other (deceased or departed) | 2 | N/A |
In total, 92% of these 800 fraudulent permit holders applied for other types of immigration permits after entering Canada.
Under the new measures, IRCC will create info alerts on files when fraud is discovered and coordinate with the Canada Border Services Agency as the enforcement authority.
Student Direct Stream Extension Holders Face New Scrutiny
One of the six measures specifically targets students who originally entered Canada through the now-cancelled Student Direct Stream.
This expedited processing pathway was identified as a major source of program integrity issues.
The audit found that IRCC identified integrity risks in the Student Direct Stream as early as 2022.
By August 2023, internal reports warned that the stream was being targeted by non genuine students. Despite these warnings, no corrective action was taken.
Indian nationals accounted for 96% of Student Direct Stream approvals in both 2022 and 2023.
Approval rates for Indian applicants through this stream rose from 61% in 2022 to 98% in 2024.
This occurred even though India was assigned a high risk profile by the department’s own risk assessment units.
Of the 800 confirmed fraud cases, 541 individuals (68%) had been approved through this problematic stream.
The Student Direct Stream was cancelled in November 2024, but an estimated 675,070 international students with post secondary study permits remained in Canada as of September 2025.
IRCC launched an advanced analytics model in November 2025 to triage extension applications based on risk and complexity.
Students who entered through the Student Direct Stream can expect additional verification requirements when applying for extensions.
Province by Province: Why Allocation Changes Are Coming
The first measure addresses how study permit spaces are distributed to provinces. The audit found that the original allocation model based primarily on population disadvantaged smaller provinces from the start.
Saskatchewan, Alberta, and Newfoundland and Labrador were supposed to see increases in international student approvals.
Instead, all three experienced decreases of 59% or more. Every province saw significantly worse outcomes than intended.
| Province | Intended Change | Actual Result 2024 |
| Ontario | -41% | -75% |
| British Columbia | -18% | -66% |
| Alberta | +10% | -65% |
| Quebec | +10% | -35% |
| Manitoba | -10% | -62% |
| Saskatchewan | +10% | -63% |
| Nova Scotia | -10% | -66% |
| New Brunswick | -10% | -64% |
| Prince Edward Island | -10% | -68% |
| Newfoundland and Labrador | +10% | -59% |
Provincial governments expressed general dissatisfaction with the level of consultation on program reforms.
They reported that consultation timing was insufficient to allow meaningful engagement and that the department provided no feedback on how their input was considered.
Ontario and British Columbia are pursuing their own immigration stream changes.
As of September 2025, provinces were not on track to meet forecasted study permit approvals. Newfoundland and Labrador had achieved only 15% of its forecasted approvals, while Saskatchewan reached just 19%.
The 23,500 Unaccounted International Students
The fifth measure addresses a critical gap in knowing who is actually leaving Canada when their permits expire.
The audit examined the status of 549,000 individuals whose study permits expired in 2024.
Of these, 93% (approximately 509,500 individuals) were allowed to remain in Canada through other immigration programs.
However, approximately 39,500 individuals should no longer be in Canada because they did not have valid immigration status.
When the Auditor General worked with the Canada Border Services Agency to check departure records, the agency could confirm the departure of only about 16,000 of these 39,500 individuals.
This leaves approximately 23,500 people whose whereabouts are unknown. This mirrors challenges facing work permit holders facing similar expiry situations.
Under the new measure, IRCC will annually provide the Canada Border Services Agency with a list of individuals who had study permits expire without applying for other immigration status.
The agency will then reconcile this list with entry and exit data.
Study Permit Approvals Far Below Forecasts
The audit found that study permit reductions exceeded what IRCC forecasted. In 2024, the department approved 149,559 new study permits compared to a forecast of 348,900.
This represents a 67% reduction from 2023 levels. Current processing times continue to reflect capacity constraints.
The department did not know why approval rates were lower than projected.
Overall approval rates dropped to 41% in 2024 and 38% as of September 2025, compared to 58% in 2023.
| Year | Applications Received | Approved | Forecasted Approvals |
| 2022 | 624,627 | 336,981 | N/A |
| 2023 | 792,200 | 456,690 | N/A |
| 2024 | 363,007 | 149,559 | 348,900 |
| 2025 (Sep) | 134,195 | 50,370 | 255,360 |
A significant shift has also occurred in the composition of approved permits. In 2024, the department approved more study permit extensions than new permits for the first time.
By September 2025, approximately two thirds of approved study permits (77,295) were for extensions.
What Actually Worked: Letter Verification System
Not all findings were negative. The Auditor General acknowledged that the department’s new letter of acceptance verification system was working as intended.
Launched in December 2023, the system verified 97% of over 841,000 letters submitted with applications.
Of the letters processed through the system, 94.1% were verified as genuine by designated learning institutions.
Only 1.4% were flagged for potential fraud, while 1.0% had been cancelled by the institution. The remaining 3.4% were processed manually due to technical issues.
However, the audit found that processing officers did not follow standard procedure in 27% of sampled applications that were flagged for potential fraud.
This is why the second measure commits IRCC to mandatory follow up on all flagged applications going forward.
Minister’s Full Response to Audit Findings
Immigration Minister Lena Metlege Diab acknowledged the audit findings while emphasizing that reforms represent only the first 18 months of a broader multi year effort running through 2027.
“The measures are working, but more can be done. Canada’s new government is taking back control of our immigration system and reducing the temporary population to below 5% of Canada’s population by the end of 2027,” the minister stated.
Statistics Canada’s latest figures show that the number of non permanent residents fell by 171,296 in the fourth quarter of 2025 alone.
As of January 1, 2026, there were 2,676,441 non permanent residents in Canada.
The minister also noted that outcomes in the International Student Program are shaped by more than federal decisions alone.
In 2024 and 2025, provinces and territories did not fully use their allocated spaces under the cap.
“Our focus is clear: protect genuine students, support communities, strengthen integrity and restore public confidence in the system. That is exactly what we are doing, and we will keep doing that work,” Minister Metlege Diab concluded.
Disclaimer: This article is for informational purposes only and does not constitute legal or immigration advice. Consult a Regulated Canadian Immigration Consultant or immigration lawyer for advice specific to your situation.
Frequently Asked Questions (FAQs)
When will these six measures take effect?
IRCC has not announced specific implementation dates for all measures. The department noted that the advanced analytics model for triaging extension applications launched in November 2025. Other measures including the annual expired permit list sharing with the Canada Border Services Agency and enhanced fraud follow up protocols are being developed. The broader reform effort runs through 2027. Students should monitor IRCC announcements for specific timelines affecting their applications.
How can I check if my designated learning institution submitted compliance reports?
IRCC does not publish a public list of which institutions submitted compliance reports. However, students can verify their institution appears on the official designated learning institution list. The audit found 50 institutions failed to submit reports for spring 2025, representing approximately 10,000 students. Institutions that fail to report may face suspension from accepting international students for up to one year under November 2024 regulatory changes. Contact your institution’s international student office to confirm their compliance status.
Will students who entered through the Student Direct Stream be denied extensions?
Not automatically, IRCC stated it will assess extension applications from former Student Direct Stream applicants with a renewed risk lens and ensure assessment based on study permit requirements. The advanced analytics model triages applications by risk and complexity to assign them to officers with corresponding expertise. Students with complete documentation demonstrating they meet financial requirements and are actively pursuing studies should not face automatic denial. However, those with indicators of ineligibility or incomplete documentation may face additional scrutiny.
What should I do if I received my study permit through fraudulent means by an agent?
This is a serious situation requiring immediate professional guidance from a Regulated Canadian Immigration Consultant or immigration lawyer. Under the Immigration and Refugee Protection Act, misrepresentation can result in a five year application ban and removal from Canada. The audit found that IRCC will now create info alerts on files when fraud is discovered and coordinate with enforcement partners. If you suspect your application contained fraudulent information submitted by an agent without your knowledge, document what happened and seek professional legal advice immediately.
How does the 5% temporary resident target affect study permit availability?
The government’s goal to reduce temporary residents to below 5% of Canada’s population by end of 2027 directly drives study permit caps. Statistics Canada data shows non permanent residents fell by 171,296 in Q4 2025 alone. Study permit limits were extended through 2027 in the 2026 to 2028 Immigration Levels Plan specifically to meet this target. The 2025 cap included both new permits and extensions. Even with caps in place, provinces did not fully use their allocated spaces in 2024 and 2025. Permit availability depends on both federal caps and provincial allocation utilization rates.
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