Canada’s opportunity amid US uncertainty for international students

As the United States prepares for a second Trump administration, international students and universities are grappling with renewed uncertainty. Travel bans, tighter visa restrictions, and threats of deportation for student activists have left many reconsidering the U.S. as a destination for higher education. In this climate, Canada has a unique opportunity to establish itself as a global leader in international education.

International students have long been vital to Canada’s academic, cultural, and economic fabric. According to the Canadian Bureau for International Education, in the 2023–24 academic year, international students contributed $22 billion to the Canadian economy, while supporting over 200,000 jobs.

However, recent policy shifts, including caps on international student enrollments, risk undermining this success. These caps, intended to address housing shortages and to reduce misuse of student visas, may inadvertently harm Canada’s reputation as a premier destination for higher education.

In the U.S., international students number over 1.1 million annually, contributing approximately $50 billion to the economy. Yet during Trump’s first term, restrictive immigration policies and a climate of fear led to a 12% drop in international student enrollment. Many now anticipate similar trends, with students increasingly seeking alternatives outside the U.S.

This is Canada’s moment to step up. By presenting itself as a stable, inclusive, and welcoming destination, Canada can attract students disillusioned with U.S. policies. A strategic campaign emphasizing Canada’s multicultural ethos, post-study work opportunities, and streamlined pathways to permanent residency could resonate strongly with international students.

India is central to this conversation. Indian students have overtaken Chinese students as the largest group of international students in both the U.S. and Canada. Canada is now a top destination for Indian students attracting 40% of its international student population from India. The United States and United Kingdom also saw Indian students make up over 25% of their international student body. These students are not just temporary visitors; many stay, integrate into the workforce and fill critical gaps in STEM and other sectors.

During a recent visit to India, I observed an intensified marketing push by Canadian colleges. However, this enthusiasm must be met with substance. International students are drawn to promises of education, opportunity, and stability—but these promises require robust policies and investment to deliver on expectations.

Canada has its challenges, including a housing crisis and the proliferation of fraudulent educational institutions. Recent enrollment caps—reducing permits by 10%, including for graduate students—aim to address these issues but risk deterring top talent. Graduate students, who contribute significantly to research and innovation, now account for approximately 12% of study permits. Excluding them from Canadian institutions could weaken the country’s long-term competitiveness.

Rather than blanket restrictions, targeted measures are needed. These include:

Increased investment in housing to alleviate shortages that disproportionately affect students.

Tighter oversight of educational institutions to root out fraudulent actors. In 2024, Canada invalidated over 17,000 fraudulent letters of acceptance. Expanding such efforts can protect students without penalizing legitimate colleges.

Improved border policies to ensure seamless entry for students while maintaining national security.

Trump’s first term saw significant disruptions for international students, from travel bans on Muslim-majority countries to restrictions on online study visas during the pandemic. These policies left students stranded and disillusioned with U.S. institutions. Many Indian and Chinese students, who together make up the majority of international enrollments, felt particularly targeted. Canada must capitalize on this by offering clear, consistent, and inclusive immigration policies.

Programs like the Post-Graduation Work Permit (PGWP) and expedited pathways to permanent residency are already attractive features of the Canadian system. Expanding these programs while maintaining their integrity can draw students seeking long-term opportunities.

The economic stakes are significant. International students contributed over $112 million to Sheridan College alone in a single fiscal year. However, recent enrollment caps have led to the suspension of 40 programs at the college, with a projected $112 million revenue loss. Such examples highlight the risks of overregulation without corresponding reforms.

International students bring diverse perspectives and global networks while filling labour shortages in high-demand sectors. In STEM fields, where international students dominate enrollment, Canada cannot afford to lose ground. A robust international education strategy isn’t just about filling classrooms; it’s a cornerstone of Canada’s economic and social future.

Canada has a rare chance to redefine its role in international education. By addressing systemic challenges while capitalizing on U.S. policy weaknesses, Ottawa can ensure that Canada remains a top choice for international talent. Expanding graduate student allocations and simplifying permanent residency pathways are critical first steps.

For Indian students and families weighing their options, Canada offers a compelling alternative. However the Canadian government must act decisively to ensure its universities remain globally competitive and its economy benefits from the influx of international talent. The stakes are high, and the time to act is now.

Faisal Kutty is a lawyer, professor of law at Southwestern Law School in Los Angeles, and an affiliate scholar at Rutgers University Center for Security, Race & Rights.