Canada Gazette, Part II, Volume 158, Number 24

Registration
SOR/2024-219 November 8, 2024

IMMIGRATION AND REFUGEE PROTECTION ACT

P.C. 2024-1206 November 8, 2024

Whereas, under subsection 5(2)of the Immigration and Refugee Protection Act, the Minister of Citizenship and Immigration caused a copy of the proposed Regulations Amending the Immigration and Refugee Protection Regulations (Designated Learning Institutions) to be laid before each House of Parliament;

Therefore, Her Excellency the Governor General in Council, on the recommendation of the Minister of Citizenship and Immigration, makes the annexed Regulations Amending the Immigration and Refugee Protection Regulations (Designated Learning Institutions) under subsection 5(1) and paragraphs 32(d), (d.1), (d.2)and (d.3) of the Immigration and Refugee Protection Act.

Amendments

1 Subparagraph 186(v)(iii) of the Immigration and Refugee Protection Regulations is replaced by the following:

• (iii) although they are permitted to engage in full-time work during a regularly scheduled break between academic sessions, they work no more than 24 hours per week during a regular academic session;

2 The Regulations are amended by adding the following after section 189:

New study permit application

189.1 A foreign national who has submitted an application for a new study permit in accordance with section 217.1 is authorized to study at the designated learning institution, as defined in section 211.1, that is named in that application until a decision is made on the application if

• (a) the foreign national has remained in Canada since they received their letter of acceptance from the designated learning institution named in the application;
• (b) the foreign national continues to comply with the conditions set out in their previous study permit, other than the condition that they remain enrolled at the designated learning institution named in that permit; and
• (c) before the foreign national completed their course or program of study, the designated learning institution named in the previous study permit
  • (i) closed,
  • (ii) discontinued the course or program of study in question,
  • (iii) was placed on the suspension list referred to in subsection 222.6(1), or
  • (iv) lost its designated status.

3 The Regulations are amended by adding the following after section 215:

Requirement — post-secondary institution

215.1 An application for a study permit that names a designated learning institution that is a post-secondary institution must be returned to the applicant without being processed, along with all documents submitted in support of the application and the fee for processing it, if that designated learning institution does not provide the confirmation referred to in paragraph 222.1(1)(a) to the Minister in accordance with that paragraph, subject to any extension granted under subsection 222.1(2).

4 Paragraph 216(1)(e) of the Regulations is replaced by the following:

• (e) has been accepted to undertake a course or program of study at a designated learning institution and, in the case of a designated learning institution that is a post-secondary institution, that designated learning institution has provided the confirmation referred to in paragraph 222.1(1)(a) to the Minister in accordance with that paragraph, subject to any extension granted under subsection 222.1(2).

5 The Regulations are amended by adding the following after section 217:

Change of designated learning institution

217.1 If the holder of a study permit in Canada whose permit names a designated learning institution is accepted to undertake a course or program of study at a different designated learning institution and intends to attend that new institution, they must submit an application for a new study permit that names the new designated learning institution.

6 Section 219 of the Regulations is replaced by the following:

Confirmation of acceptance

219 (1) A study permit must not be issued to a foreign national unless

• (a) in the case of an application for a study permit that names a designated learning institution that is a post-secondary institution, that designated learning institution has provided confirmation to the Minister in accordance with paragraph 222.1(1)(a), subject to any extension granted under subsection 222.1(2), that the designated learning institution has accepted the foreign national to the course or program of study that is indicated in the application for the study permit; and
• (b) in any other case, the foreign national has provided written documentation from the designated learning institution where they intend to study that states that they have been accepted to study there.

Exception

(2) Subsection (1) does not apply to a foreign national who applies for a study permit before entering Canada if they are an accompanying family member of a foreign national whose application for a work permit or a study permit is approved in writing before their entry into Canada.

7 Paragraph 220.1(1)(a) of the Regulations is replaced by the following:

• (a) they shall enroll at the designated learning institution that is named in their permit and remain enrolled there until they complete their studies; and

8 Subsection 222(1) of the Regulations is amended by adding the following after paragraph (a):

• (a.1) the day on which the permit holder is no longer enrolled at the designated learning institution that is named in the permit, other than as a result of completing their studies;

9 The Regulations are amended by adding the following after section 222:

DIVISION 6

Conditions Imposed on Post-Secondary Designated Learning Institutions

Conditions

222.1 (1) A designated learning institution that is a post-secondary institution must comply with the following conditions:

• (a) it must, using the electronic means that are made available or specified by the Minister for that purpose, within 10 days after the day on which it is requested to do so by the Minister, confirm whether the designated learning institution has accepted a foreign national to the course or program of study that is indicated in their application for a study permit;
• (b) it must, using the electronic means that are made available or specified by the Minister for that purpose, within 60 days after the day on which it is requested to do so by the Minister, provide a compliance report that sets out the enrolment status of each foreign national who has been accepted to the designated learning institution;
• (c) it must, using the electronic means that are made available or specified by the Minister for that purpose, within 10 days after the day on which it is requested to do so by the Minister, provide any additions or corrections to the information in the compliance report; and
• (d) it must, using the electronic means that are made available or specified by the Minister for that purpose, within 10 days after the day on which it is requested to do so by the Minister, provide any further information that the Minister requires in relation to study permits or applications for study permits that name the designated learning institution, or otherwise in relation to the administration of this Part.

Extension of time

(2) The Minister may, on request from a designated learning institution or on their own initiative, extend the time within which a confirmation, a report or information must be provided under this section if

• (a) in the case of a confirmation required under paragraph (1)(a), the Minister determines that the designated learning institution’s provision of that confirmation has been prevented or impeded by
  • (i) a prolonged failure of power, communications or other infrastructure systems,
  • (ii) a natural disaster,
  • (iii) a public health emergency, or
  • (iv) a labour dispute; or
• (b) in the case of a report required under paragraph (1)(b) or information required under paragraph (1)(c) or (d), the Minister determines that the designated learning institution’s provision of the report or information has been prevented or impeded by exceptional circumstances.

Verification of compliance with conditions

222.2 (1) An officer may verify a designated learning institution’s compliance with the conditions set out in subsection 222.1(1) in the following circumstances:

• (a) the officer has a reason to suspect that the designated learning institution is not complying or has not complied with those conditions, including by providing inaccurate information;
• (b) the officer has a reason to suspect that a letter of acceptance that purports to be from the designated learning institution was improperly issued;
• (c) the designated learning institution is chosen as part of a random verification of compliance with the conditions; or
• (d) the designated learning institution has not complied with those conditions in the past.

Documents and questions

(2) The officer may, for the purpose of verifying compliance with the conditions, require the designated learning institution to

• (a) provide any relevant documents; and
• (b) make a representative available to respond to questions at a time and by a means specified by the officer.

Justification

(3) A failure to comply with a condition is justified if the designated learning institution made all reasonable efforts to comply with it or if the failure results from anything done or omitted to be done by the designated learning institution in good faith.

Notice of preliminary finding

222.3 (1) An officer who determines that a designated learning institution has failed to comply with a condition set out in subsection 222.1(1) must, unless they are satisfied that the failure is justified, issue to the designated learning institution a notice of preliminary finding that sets out

• (a) the name of the designated learning institution;
• (b) the condition with which the designated learning institution failed to comply;
• (c) the details of the designated learning institution’s failure to comply with the condition;
• (d) the period for which the officer recommends that the designated learning institution be placed on the suspension list referred to in subsection 222.6(1);
• (e) the reasons for the determination and for the recommended period of placement on the suspension list; and
• (f) an indication that the designated learning institution may make written submissions with respect to the information referred to in paragraphs (b) to (e) or any justification under subsection 222.2(3) within 30 days after the day on which it receives the notice.

Receipt of notice

(2) Despite subsection 9.3(2), the notice of preliminary finding is deemed to have been received 10 days after the day on which it is sent.

Correction or cancellation of notice

(3) The officer may, at any time before the notice of final determination is issued, cancel a notice of preliminary finding or issue a corrected notice of preliminary finding.

Written submissions

222.4 (1) A designated learning institution to which is issued a notice of preliminary finding under subsection 222.3(1) or a corrected notice of preliminary finding under subsection 222.3(3) may, within 30 days after the day on which it receives the notice, make written submissions with respect to the information referred to in paragraphs 222.3(1)(b) to (e) or any justification under subsection 222.2(3) and include with those submissions any relevant document.

Extension of time

(2) The Minister may, on the request of a designated learning institution, grant a single extension of not more than 30 days for the designated learning institution to make written submissions under subsection (1) if the Minister determines that exceptional circumstances have prevented or impeded the designated learning institution from making those submissions.

Notice of final determination

222.5 (1) If, after the time for making written submissions has elapsed, the Minister determines that a designated learning institution has failed to comply with a condition set out in subsection 222.1(1) and that the failure is not justified, they must issue to the designated learning institution a notice of final determination that sets out

• (a) the name of the designated learning institution;
• (b) the condition with which the designated learning institution failed to comply;
• (c) either
  • (i) the period for which the designated learning institution is to be placed on the suspension list referred to in subsection 222.6(1), or
  • (ii) a warning advising the designated learning institution that it is not to be placed on the suspension list but that the determination of non-compliance may be considered in determining whether, in the event of any subsequent failure to comply with a condition set out in subsection 222.1(1), the designated learning institution is to be placed on the list; and
• (d) the reasons for the determination and, if applicable, for the designated learning institution’s placement on the suspension list.

Considerations — suspension

(2) In determining whether the designated learning institution is to be placed on the suspension list referred to in subsection 222.6(1) and, if applicable, the period for which it is to be placed on that list, the Minister must consider

• (a) the frequency with which the designated learning institution has failed to comply with the conditions set out in subsection 222.1(1), including any such failures for which a warning was issued;
• (b) the seriousness of the designated learning institution’s failure to comply with the conditions;
• (c) the designated learning institution’s efforts to comply with the conditions;
• (d) the designated learning institution’s cooperation during the verification referred to in subsection 222.2(2); and
• (e) any written submissions made by the designated learning institution under subsection 222.4(1).

Maximum period of suspension

(3) The maximum period for which a designated learning institution may remain on the suspension list is 12 consecutive months.

Suspension list

222.6 (1) The Minister must publish and maintain a suspension list that is accessible to the public and that sets out, for each designated learning institution that received a notice of final determination indicating that it was to be placed on the list,

• (a) the designated learning institution’s name, mailing address and website;
• (b) the conditions set out in subsection 222.1(1) with which the designated learning institution failed to comply;
• (c) the date on which the designated learning institution was placed on the list; and
• (d) the period for which the designated learning institution is to remain on the list.

Application not to be processed

(2) An application for a study permit that names a designated learning institution and that is received during a period in which that designated learning institution is on the suspension list must be returned to the applicant without being processed, along with all documents submitted in support of the application and the fee for processing it.

Clarification

(3) For greater certainty, subsection (2) does not apply to an application for the renewal of a study permit to allow the applicant to complete their course or program of study.

Coming into Force

10 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issues

Under the existing Immigration and Refugee Protection Regulations (IRPR), Immigration, Refugees and Citizenship Canada (IRCC) and the provinces and territories (PTs) share responsibility for international students. Under Memoranda of Understanding (MOUs), provinces and territories establish the minimum common standards with IRCC for designating educational institutions, called designated learning institutions (DLIs), that are allowed to receive international students, and to remove designation status where applicable. IRCC is responsible for processing study permit applications for international students who have been accepted to attend a DLI.

Three issues have been identified that impact program integrity:

• Under the existing regulations, the federal Government does not have the regulatory authority to compel reporting from DLIs as part of the compliance program and letter of acceptance verification system. Where DLIs are not reporting, IRCC does not have a reliable way of determining whether a student is attending the DLI and complying with their study permit requirements, and IRCC cannot effectively detect fraudulent letters of acceptance.
• Currently, IRCC cannot impose conditions on a non-compliant DLI, such as the suspension of study permit processing. This means that IRCC is required to issue study permits for students attending the DLI even when the DLI is not reporting to IRCC on student enrollment status or participating in the letter of acceptance verification system.
• Under the current regulations, IRCC cannot compel international students to notify the Department if they change DLIs. As a result, IRCC is unable in many cases to confirm student attendance and study permit compliance when a student changes DLIs.

The IRPR also limits the number of hours eligible international students may work off campus without a work permit to 20 hours per week during regular academic sessions. International students and some stakeholders have indicated that 20 hours of work per week is not sufficient to keep up with the cost of living in Canada.

Background

The administration of the International Student Program (ISP) is a shared responsibility between IRCC and PTs. For its part, IRCC is responsible for setting policy regarding the entry of international students, establishing the conditions study permit holders must meet while in Canada as well as conditions on DLIs for non-compliance with federal requirements under the ISP, and deciding whether a study permit should be issued to an applicant.

For DLIs to receive international students to study in Canada, they must be designated by the province or territory based on a set of standards embedded in the MOUs with each PT. PTs also set their own standards that DLIs must meet in order to be designated by their jurisdiction. PTs inform IRCC when institutions need to be added or removed from the public DLI list, which enumerates the institutions that are allowed to receive students within a given province or territory. Quebec currently designates its own DLIs as per its own regulations; therefore, the province is exempted from the requirement to enter into an MOU with IRCC.

In 2023, Canada welcomed an all-time high number of international students, with approximately 1 040 000 primary, secondary, and post-secondary study permit holders, up 151% from 352 305 study permit holders in 2015. In 2023, the Department received 914 405 applications for new study permits, compared to 713 775 in 2022, which represents a 28% increase. This spike in demand can be attributed to a number of factors, including greater interest to come study, and then potentially work, in Canada, as well as increased promotion and marketing activities to identify Canada as a choice destination for pursuing post-secondary studies.

Under existing regulations, international students may change their DLI at any given time, but IRCC recommends that they inform the Department through a secure portal. This is an administrative practice and currently it cannot be enforced. International students who switch DLIs without notification could be reported for non-attendance at their original DLI and could be found non-compliant with their permit conditions, which could negatively impact their ability to obtain a subsequent study permit. It is in the collective interest of students, DLIs and levels of government to have mandatory and accurate information on the student’s current DLI.

Since 2014, students who meet certain criteria as specified by the regulations have been authorized to work 20 hours off campus without a work permit. Starting in November 2022, the Minister of Citizenship and Immigration issued a series of public policies, which included waiving the 20-hour-per-week limit for eligible post-secondary students. The public policies were intended as a temporary measure to fill post-pandemic labour market needs, as international students are primarily admitted to Canada to study, not to work. These public policies expired on April 30, 2024. However, there is a need to reassess the appropriate balance between the need some students have to work for supplementary income while respecting the purpose of a study permit, ensuring academic outcomes of the student and remaining consistent with other like-minded countries that have limits on work hours for international students. For example, the United Kingdom, New Zealand, and Ireland allow certain students to work up to 20 hours per week, while Australia changed its work hours limit in 2023 to 48 hours every two weeks. A review of these factors has led to the proposal to moderately increase work hours to a maximum of 24 hours.

Objective

The main objective of the amendments is to provide IRCC with the appropriate tools to ensure that study permits are issued to those who will be attending genuine DLIs that comply with both federal and provincial requirements and to verify that students are complying with their study permit conditions. Additionally, IRCC requires the proper means to take action against DLIs that fail to comply with the regulations.

Finally, the amendments also allow international students to work 4 additional hours off campus, raising the maximum to 24 hours per week, to help offset the cost of living in Canada.

Description

The regulatory amendments apply exclusively to post-secondary DLIs and post-secondary international students. Any reference to DLIs in this document refers to institutions at the post-secondary level only.

Conditions on DLIs

The regulations require that post-secondary DLIs comply with the following conditions, using the electronic means specified by the Minister:

• confirm, within 10 days of a request from the Minister, whether a student has been accepted to undertake a program of study indicated on the study permit application;
• submit a compliance report, within 60 days of a request from the Minister, about the enrollment status of each student who has been accepted to that institution;
• within 10 days of a request from the Minister, correct or provide additional information to the information in a compliance report; and
• within 10 days of a request from the Minister, provide any further information that the Minister requires, such as information related to study permits or study permit applications that name the DLI.

The regulations allow the Minister, based on their own initiative or at the request of the DLI, to extend the time provided so that the institution can confirm, provide information, or provide a report, if the Minister determines that

• the DLI’s confirmation of the acceptance of a student has been impeded by infrastructure failure, such as power or communications, a natural disaster, a public health emergency, or a labour dispute; or
• the DLI’s provision of information under any other condition has been impeded by exceptional circumstances.

Verification of DLI compliance with conditions

The regulations allow an IRCC officer to verify a DLI’s compliance with the conditions if

• the officer has reason to suspect that the DLI is not complying or has not complied with the conditions, including providing inaccurate information;
• the officer has reason to suspect that a letter of acceptance was improperly issued;
• the DLI is chosen as part of random verification; or
• the DLI has not complied with conditions in the past.

For the purposes of verifying compliance, the regulations allow the officer to require that the DLI provide any relevant documents and make a representative available to answer questions, at a time and place specified by the officer.

Under the regulations, a failure to comply with a condition would be justified if the DLI made all reasonable efforts to comply or if the non-compliance is a result of the DLI acting in good faith.

The regulations require an officer who determines that a DLI is non-compliant with a condition to issue a notice of preliminary finding. The notice must set out

• the name of the DLI;
• the condition with which the DLI is non-compliant and the details;
• the period of time the officer recommends the DLI be placed on the suspension list and the reasons for the recommendation; and
• an indication that the DLI can make written submissions with respect to the information or any justification within 30 days of receiving the notice.

Under the regulations, the notice of preliminary finding is deemed to have been received 10 days after the day it is sent. The regulations allow the officer to correct or cancel the notice at any time before the notice of final determination is issued.

The regulations allow the DLI to make written submissions within 30 days of receiving a notice of preliminary finding and include any relevant documents. The Minister may grant, at the request of the DLI, an extension of no more than 30 days to make written submissions if the Minister determines that the institution’s ability to make the submissions was prevented or impeded by exceptional circumstances.

If, after the 30-day written submission period, the Minister determines that the DLI has failed to meet the conditions, the regulations require the Minister to issue a notice of final determination that includes

• the DLI’s name;
• the condition that was not complied with;
• either the period for which the DLI is to be placed on the suspension list or a warning advising the DLI that it will not be placed on the suspension list but that the determination of non-compliance may be factored into the DLI’s placement on the list in any future non-compliance with the conditions; and
• the reason for the determination and the placement on the suspension list, if applicable.

Suspension list and period

In determining whether a DLI is to be placed on the suspension list and the penalty period, the regulations require the Minister to consider the frequency and seriousness of the DLI’s non-compliance with conditions, the efforts the DLI made to comply with the conditions, the DLI’s level of cooperation during verification, and the DLI’s written submissions to the notice of preliminary finding.

The regulations require that the Minister publish and maintain a public suspension list that sets out the following for each DLI that received a notice of final determination requiring that it be placed on the list:

• the DLI’s name, mailing address, and website;
• the condition with which the DLI was non-compliant; and
• the date the DLI was placed on the list and the time period it is to remain on the list.

The regulations allow a non-compliant DLI to remain on the suspension list for a maximum period of 12 consecutive months.

The proposed regulatory changes prepublished in the Canada Gazette, Part I (CGI), required that, during the period that a DLI is on the suspension list, applications for a study permit that named the DLI be returned to the applicant without being processed, along with all supporting documents and the processing fee.

Requirement to apply for a new study permit to change DLI — Changes post-CGI

Under the proposed regulations, a student would have had to reapply to transfer to another DLI to complete their current program of study. In response to the comments received at prepublication, the proposed regulations have been amended so that applications from students seeking to extend their existing study permit at the suspended DLI may do so only to complete a program of study already underway, particularly for situations where the student’s study permit may expire in advance of program completion. The amendment was made to lessen the burden and unintended impacts on students related to the financial and administrative loss that they would encounter if they applied for a study permit renewal to a suspended DLI, while at the same time, maintaining the spirit of the regulations to impose suspensions of study permit processing for non-compliant DLIs.

The proposed amendments prepublished in the Canada Gazette, Part I, required that a study permit holder who wished to switch to a DLI other than the one indicated on their study permit would have to apply for a new study permit before the start date of the new program of study. The proposed amendments would have allowed these students to start attending the new DLI before the new study permit was approved. The prepublished proposal applied this measure to all students.

The proposed regulations have been amended to limit the situations in which a student can begin to study at the new DLI before their new study permit is approved. Specifically, students need to obtain approval of their new study permit before moving to the new DLI unless they meet one of the following conditions: the DLI closed, or the program was discontinued; the DLI was suspended; or the DLI was de-designated by the province or territory. In these cases, a student could attend the new DLI provided they have submitted an application for a new study permit. In determining these cases, IRCC considered that not all students would be in comparable situations when switching institutions. Most students freely elect to change DLIs based on personal choice and have the ability to plan ahead; a smaller number of students change DLIs due to factors beyond their control. Given these involuntary factors, the latter group will continue to be able to attend a new DLI before permit approval, provided they have submitted an application for a new study permit.

In making this change, IRCC considered stakeholder comments on the requirement to obtain a new study permit when switching DLIs. DLIs raised concerns about the increased administrative burden on students and the DLI’s ability to meet the new compliance reporting requirements in the context of students switching institutions, as well as enrollment uncertainty resulting from the movement of students, including instances of disruptive departures by students in cases of permit refusals and related requests for tuition refunds.

This change ensures that most students will have greater certainty around their immigration status before they commence studies at a new institution. It reduces the burden for DLIs in meeting their compliance reporting requirements, as allowing switching before students have an approved study permit creates greater complexity in reporting student attendance to IRCC and minimizes instances of disruptive departures by students in cases of permit refusals and related requests for tuition refunds. This change also minimizes the risk that a student is assumed to be in non-compliance with their study permit based on a report from the DLI that the student is not attending. Suspected non-compliance with study permit requirements could lead to an investigation of the student by IRCC, which is resource intensive and would create stress for the student.

The amendment means that students who want to switch institutions will need to take application processing times into account, stay enrolled in the original program and attend classes, and obtain a new study permit before they change institutions in order to stay in compliance with their existing study permit conditions. Alternatively, students may choose to apply for a new status as a visitor or obtain a work permit or opt to depart Canada while their application for a new study permit is processed.

Amendments to the letter of acceptance provisions

The regulations amend the existing provisions regarding the issuance of a study permit such that DLIs are now required to confirm the letter of acceptance (LOA) provided by an applicant. The regulations also amend the existing provision for accompanying family members so that they are exempt from the LOA verification as long as their study or work permit is approved before their entry into Canada. However, once in Canada, if that family member moves to a post-secondary DLI, the regulations require the accompanying family member to have an LOA that is required to be verified.

The regulations add a new provision instructing not to process a study permit application and to return it to the student, along with supporting documents and processing fees, if a DLI does not confirm whether the student has been accepted to a post-secondary institution as required under the conditions on DLIs.

Consequences for not complying with the conditions

The regulations amend existing conditions to specify that study permit holders must enroll at the DLI listed on their study permit and remain enrolled until they complete their studies. The study permit invalidity provisions are also amended to add that the day when the permit holder is no longer enrolled at the DLI named on the permit, is the date when the permit may become invalid.

Off-campus work hours

The regulations increase the limit on off-campus work during regular academic sessions from 20 hours per week to 24 hours per week.

Regulatory development

Consultation

Since fall 2022, IRCC consulted extensively with provincial and territorial ministries responsible for both immigration and education, national education associations representing the majority of DLIs across Canada and individual DLIs and student representative organizations. These consultations focused on challenges and initiatives that would raise the bar for all institutions to better recruit and support international students; manage unsustainably high volumes in the ISP; and develop regulatory authorities and stronger policy tools that would better address student vulnerability, fraud, and non-genuine actors.

Through the consultations, PTs provided feedback along the following themes:

• strengthening a designation framework that sees stronger compliance and enforcement action;
• suspending the issuance of study permits to non-compliant DLIs; and
• boosting compliance tools and increasing communication between IRCC and PTs on DLIs of concern.

While there was general agreement on the first and third set of measures, regarding the second one, reactions were mixed. Some PTs showed support for stronger authorities to suspend study permits to DLIs engaged in fraudulent activities or high rates of non-compliance as long as IRCC was mindful of the PT role in designating DLIs, while others were concerned that greater federal authorities could encroach on their education mandate.

On LOA verification, PTs actively commented on the success of the measure currently in place through ministerial instructions, which also reflected the feedback received from their respective DLIs. Finally, PTs provided general support for strengthening the DLI framework, including the compliance regime.

IRCC also held consultations regarding the modernization of the student program with the following national associations for post-secondary education: Universities Canada, Colleges and Institutes Canada, Canadian Bureau for International Education, Languages Canada, and Association des collèges et universités de la francophonie canadienne. Associations, on behalf of their members, provided the following feedback:

• many suggested that the Department should explore how to prevent students from switching DLIs to ensure the effectiveness of the LOA verification process and that students attend the specific DLI listed on their permit;
• many indicated that the LOA verification process has been working well and are interested in exploring how it could be further leveraged for the purposes of sharing information and reducing fraud; and
• many recommended further actions in general terms to strengthen the DLI framework and compliance and raise standards.

IRCC is committed to working closely with all PTs, whether in multilateral or bilateral discussions, to advance ISP reform.

IRCC consulted on the issue of off-campus work, including the public policies waiving the 20-hour work limit, through a survey and stakeholder interviews held in the summer of 2023. Consultations on off-campus work hours demonstrated a wide range of views on the number of hours international students should be authorized to work off campus. In consultations with provincial and territorial education ministries, most expressed concerns with unlimited or significantly increased work hours, citing risks to program integrity, students prioritizing work over study, recruitment practices, impacts to student academic success, and concerns regarding exploitation of students by employers. One province sought feedback on the public policies from its public post-secondary institutions, in which the majority of respondents expressed strong concerns regarding students’ well-being and academic performance within the context of unlimited work.

However, the public policy lifting the 20-hour-per-week limit was popular amongst eligible international students. In summer 2023, IRCC conducted a survey of international students who were eligible for the public policy to better understand the impact of the public policy that waived the 20-hour limit on off-campus work. Eighty-nine percent of the students who responded to the survey were in favour of permanently lifting the cap. The survey also found that 81.4% of respondents worked during the winter/spring 2023 semester. Moreover, 75.1% of eligible students reported that they worked off campus, with 73.1% of those who worked off campus indicating that they worked more than 20 hours per week.

IRCC also heard from a number of employers experiencing labour shortages, who support lifting the 20-hour limit completely.

Academic associations and service provider organizations were also interviewed by IRCC officials regarding the public policy lifting the off-campus work hours limit; their feedback was largely positive. Several organizations and associations emphasized the principle of equity between international and domestic students, and the importance of respecting international students’ autonomy and agency to make their own decisions regarding their work/school balance. However, the Department also heard that some DLIs have experienced an increase in the number of international students struggling in their studies since the introduction of this temporary policy change, indicating that some are prioritizing work over their studies.

Comments received through the prepublication period

The proposed amendments were published in the Canada Gazette, Part I, on June 29, 2024, for a 30-day consultation period. PTs and various stakeholders including national education associations, immigration lawyers and consultants, DLIs, international students and workers, and the general public provided feedback to the proposed amendments. IRCC also considered comments received via email after the consultation period. In total, IRCC received 315 comments from 138 individual commenters via the Canada Gazette, and 27 submissions via email, which included requests to obtain the cost-benefit analysis (CBA) and submissions that were cross posted on the Canada Gazette.

Respondents were generally supportive of the proposed regulations for strengthening program integrity in the International Student Program, reducing exploitation and/or fraud within the immigration system, particularly the amendments concerning the development of a robust framework to collect information and data, and enhancing the safety and security of international students.

However, some respondents raised concerns, as noted below.

On the proposed regulations to require a new study permit when switching DLIs, commenters expressed various views, with slightly more in favour of the requirement but a significant number of others expressing opposition to this measure. Approximately one dozen comments from members of the public expressed opposition to the requirement to obtain a new study permit for reasons including administrative burden on applicants, potential loss of status and financial impacts for students if their study permit application was refused. Around five DLIs expressed opposition to the requirement to obtain a new study permit for reasons including the administrative burden on DLIs and their ability to meet compliance reporting requirements in the context of students switching institutions, as well as enrollment uncertainty and unexpected tuition refunds resulting from the movement of students. Three national education associations and two PTs reflected similar concerns as members of the public in their submissions, while expressing overall support on the regulatory package. There were a few comments from members of the public that suggested alternative means to track students, such as student self-reporting or a submission with fewer requirements than a new study permit application.

In response: The study permit approval rate for in-Canada applicants is around 95% nationally, consequently about 5% are refused. There could be several reasons why a new study permit application may be refused. For example, if the applicant is missing required documentation (such as a Letter of Acceptance verified by the DLI or valid Provincial Attestation Letter) or if the student was previously non-compliant with study permit conditions. IRCC made changes to mitigate concerns over the loss of status, disruption to DLIs and to reduce the complexity of compliance reporting by limiting the situations where students could switch prior to confirmation of the new study permit. IRCC identified situations where students would need to switch for reasons outside of their control, such as the de-designation or suspension of their current DLI, in order to preserve flexibility for students to commence studies at a new DLI in those circumstances. IRCC considered the proposed alternative means to track students, such as self-reporting or a submission with fewer requirements than a new permit application and determined that these approaches would not eliminate administrative burden for students or DLIs and would not provide the same level of assurance to IRCC. IRCC acknowledges that the new measure imposes additional administrative requirements on DLIs and students but is justified by the need to ensure program integrity and the effective management of the immigration system.

Other stakeholders requested more information or clarification on the amendments.

Some PTs wanted more information regarding the procedures for suspensions and additional verifications. In response: IRCC agreed to share a suspension framework with PTs, which outlines how PTs will be informed throughout the process of non-compliance.

Associations and DLIs asked for clarification on some of the new proposals, such as definitions of “enrollment” and “actively pursuing studies” and impacts of the requirement to apply for a new study permit when changing DLIs for “joint programs” in order to ensure they understand the implications of meeting these conditions. In response: IRCC agreed to provide clarification in policy guidance and communication to the public.

Three provinces made submissions indicating their support for 24 hours or more, while the remaining provinces did not make submissions. One education association made a submission that welcomed the proposed increase, while immigration representatives were opposed due in part to concerns about blurring the line between students and workers.

Comments from the general public varied.

Members of the public expressed various views with regard to increasing the off-campus work hours. While some respondents were supportive, many said that 24 hours is insufficient. However, other respondents were opposed to increased hours, with many advocating for restrictions. In response: IRCC emphasizes that 24 hours offers a compromise between these diverging views.

Some commenters expressed concerns regarding the estimate of time required for a DLI to verify an LOA. It was noted that 30 seconds per LOA verification was not an appropriate assumption, even after period 3, and that 3 minutes is a true reflection of all the necessary verification steps. IRCC has reflected a 3-minute process for LOA verification by DLIs in all periods in the updated cost-benefit analysis.

Modern treaty obligations and Indigenous engagement and consultation

The proposal has been assessed for modern treaty implications and the Department did not identify any potential modern treaty or self-government impacts.

Instrument choice

The program enhancements can only be achieved through amending the IRPR.

As the limit on off-campus work is prescribed in regulation, the only option available to change the limit is by amending the regulations.

Regulatory analysis

Benefits and costs

An important first step in developing a cost-benefit methodology is establishing a baseline scenario against which options may be measured. For this analysis, the baseline scenario is one where regulatory requirements for DLIs and study permit holders would be unchanged. The baseline scenario is then compared with the regulatory scenario, in which DLIs are required to verify LOAs for study permit applications and submit DLI compliance reports to IRCC. IRCC would be able to take a course of action when DLIs fail to comply with the regulatory conditions, by adding non-compliant DLIs to a public suspension list and preventing the approval of study permit applications that list suspended DLIs. In the regulatory scenario, study permit holders would be required to attend the DLI listed on their study permit, which means that if a student chooses to switch DLIs, they would be required to apply for a new study permit, and attend the new DLI only when the new study permit has been issued. And lastly, full-time international students pursuing academic, professional or vocational training programs would also be permitted to work 24 hours per week off campus, instead of the existing limit of 20 hours per week.

The costs and benefits of the regulatory amendments are monetized for 10 periods of 12 months (2024 to 2033) and are expressed in 2023 dollars. The Regulations come into force on the day they are registered. For further details regarding the methodology, a detailed cost-benefit analysis report is available upon request at the following email address: IRCC.TEIBISPPPolicy-DIETPPEIPolitique.IRCC@cic.gc.ca.

Consultation on cost and benefit impacts were conducted through a summer 2023 IRCC survey of eligible international students, which sought to better understand the impact and participation rate of eligible international students in the public policy that waived the 20-hour limit on off-campus work.

This cost-benefit analysis makes assumptions around variables that may be subject to uncertainty. It is important to acknowledge this uncertainty, in particular the presence of uncertainty in variables on which impacted external stakeholders were not consulted. For this reason, a sensitivity analysis was conducted to examine how changes in uncertain variables would impact the cost-benefit analysis results. For sensitivity analysis results, please consult the cost-benefit analysis report.

Changes made following prepublication period:

• The forecast of study permit applications to be received by IRCC and requiring LOA verification by DLIs has been adjusted to reflect IRCC’s updated forecast as impacted by the cap policy. This update resulted in a decrease in the volume of study permit applications that would require LOA verification, from 13.3 million in 10 periods to 12.6 million.
• The forecast of study permit holders has been updated, with the analysis now assuming an average annual growth rate of 5.5%, compared to an average annual growth rate of 9.2% estimated in the prepublication analysis. This change was made to reflect updated IRCC preliminary forecasts of study permit holders’ population given the study permit cap. The updated growth rates decrease the volume of international students that will need to reapply for a study permit when changing DLIs (from 474 146 in 10 periods to 315 855), and the volume of international students that will benefit from the work hours amendment (from 4.6 million in 10 periods to 3.0 million). For the purpose of this analysis, the forecast assumes negative growth up until period 3. Given long-term uncertainty, this analysis assumes a resumption of growth in study permit holders starting in period 4, at the rate of growth for this population prior to the implementation of the existing caps policy (11.6% per period).
• In the prepublication proposal, it was proposed that students who choose to switch DLIs would be allowed to attend the new DLI without a valid study permit until a decision was made on their application, as long as they remained in Canada and complied with all the conditions of their valid permit. This has changed, and the regulatory amendments now require that students who choose to switch DLIs and who applied for a new study permit will be able to begin studies at a new DLI prior to their study permit decision being made only in specified circumstances. In some instances, students who apply for their new study permit late in their academic session may not be able to attend the new DLI in the immediate semester following, and face delays in finalizing their studies. The potential cost impacts to students have been included, in the form of foregone earnings due to delayed graduation, and the cost of either attending a semester in their current DLI or leaving Canada while they wait for the issuance of their study permit. The additional cost to students from this change are estimated at $675,573,672 in present value (PV) 10 periods.
• The time required for LOA verification by DLIs has been adjusted to reflect 3 minutes per LOA in all periods, as opposed to 3 minutes for the first three periods, and 30 seconds thereafter. Comments received indicated that 3 minutes would be an accurate reflection of the time it takes DLIs currently, and what they expect the process will be in future years.
• Cost to the Government of Canada for implementing the regulatory amendments have been updated, as IRCC is better placed to estimate incremental resources and time efforts, resulting in a decrease in Government costs from $19,383,941 PV in 10 periods, to $11,737,869 PV in 10 periods.

The regulatory amendments are estimated to cost $746,204,209 PV in 10 periods. These costs consist of Government of Canada implementation activities, costs to DLIs related to participating in the LOA verification system and submitting compliance reports to IRCC, and costs to study permit holders who wish to change DLIs. The regulatory changes to increase the off-campus work hours limit for full-time international students are not expected to result in any incremental costs. Costs for the Department’s implementation of the amendments will be managed through existing IRCC resources. The benefits of the regulatory amendments will be incurred by international students who are eligible for the 4-hour increase in their weekly off-campus work hour limit (from the previous limit of 20 hours). These benefits are estimated at $6.9 billion PV in 10 periods.

Costs to DLIs

Mandatory LOA verification

In the baseline scenario, although existing Ministerial instructions with respect to the processing of study permit applications already require LOA verification from post-secondary DLIs, these instructions are a temporary measure. The regulatory amendments permanently establish an LOA verification requirement through an existing portal where DLIs are provided with the applicant’s biographical information, student number from the accepting institution, and the DLI’s confirmation of the student’s acceptance. This requirement is expected to affect between 1 700 and 2 000 DLIs Canada-wide, including those in Quebec.

For the purpose of estimating the cost impacts of the LOA verification requirement on DLIs, the number of study permit applications that will require verification in period 1 is estimated at 860 262. This volume is expected to increase by 8.66% in period 2. For the purpose of this analysis, the study permit applications cap policy is expected to start reflecting a lower number of applications processed by IRCC in period 3, with growth in this period and period 4 estimated at 2.8%. Given long-term uncertainty on study permit caps policy, starting in period 5, the growth in application volumes is assumed to resume growing at the average annual growth rate of study permit holders prior to the implementation of the existing caps policy (11.6% per period).

It is assumed that a DLI will spend three minutes verifying each LOA. The total cost to DLIs for LOA verification is estimated at $14,335,268 PV over 10 periods.

Compliance reports

In the baseline scenario, all post-secondary DLIs, with the exception of institutions located in Quebec, must complete and submit scheduled reports on the academic enrollment status of their study permit holders at the post-secondary level to IRCC. Although compliance reporting is already a requirement for approximately 700 DLIs, about 6% to 8% of those required to submit reports fail to do so. Besides closing the compliance gap that exists for this requirement, the regulatory amendments will also add Quebec post-secondary DLIs to the compliance reporting regime through an information-sharing arrangement between IRCC and Quebec.

Onboarding of Quebec DLIs for this requirement is expected to take approximately one year. For this reason, Quebec DLIs will start complying with the reporting requirement in period 2. In period 1, for the purpose of this analysis, it is estimated that 39 DLIs will be impacted by the reporting requirement. This reflects the number of non-Quebec DLIs that are non-compliant under the existing regime. In period 2 363 Quebec DLIs will start complying with the reporting requirement, for a total of 402 Canada-wide DLIs required to submit compliance reports in this period. To reflect the impact of the intake cap on most study permit applications, no growth in the number of DLIs is expected for the first four periods. In period 5, a resumption of growth is assumed, at 3.5% per period. The development and submission of a compliance report is expected to take 37.5 hours per DLI, and it is required twice per period.

Besides requiring the submission of biannual reports, the regulatory amendments will also provide the authority for follow-ups with DLIs where IRCC has questions or concerns with the information submitted in the reports. Only 50% of impacted DLIs are expected to require follow-ups, and these are expected to take 10 minutes for DLIs to complete for multiple student records.

The cost related to compliance reporting requirements to DLIs is estimated at $6,834,342 PV over 10 periods.

Lastly, the regulatory amendments will allow IRCC to take action when a DLI has failed to comply with the reporting conditions in the regulatory amendments. Non-compliant DLIs may be added to a publicly available suspension list and may be suspended from receiving international students for a period of up to 12 months. The cost impacts to suspended DLIs will be losses of revenue from international students not enrolling in their institution during the suspension period. These impacts do not have standing for the purpose of this cost-benefit analysis, as they will be considered a consequence of non-compliance with the regulations.

Cost to study permit holders

In the baseline scenario, although IRCC requires that students notify them when they change DLIs, students are not required to submit a new study permit application if they wish to switch DLIs. The regulatory amendments require that students obtain a new study permit should they choose to transfer to a new DLI. Movement between DLIs is common and challenging to track. Although IRCC does not have the data to determine how many international students transfer DLIs yearly, based on DLI compliance reporting, it is estimated that approximately 5% do so.

For the purpose of this analysis, in period 1, 30 383 study permit reapplications are expected. This volume is assumed to grow at the average annual growth rate of study permit holders, estimated at 5.5% per period.

Fee and time cost to apply for a new study permit

All of the students who choose to attend a DLI that is different from the one listed on their study permit will need to apply for a new study permit. The costs to these study permit holders include the time spent preparing their new application (30 to 45 minutes per application), and application fees, set at $150 per application. The total cost to study permit holders for submitting new study permit applications is estimated at $37,723,058 PV over 10 periods. This includes $34,256,060 PV in application fees, and $3,466,999 PV in time spent to prepare and submit their applications. The hourly wage rate assumed for study permit holders is $24.29.

Tuition, travel costs, and foregone earnings

An increase in the volume of study permit applications submitted may increase processing times for this line of business. IRCC plans to reallocate resources to respond to increased volumes and processing pressures, so that students can receive their application decision within reasonable service standards. The current service standard for study permit extensions is 120 days or approximately 4 months.

In the baseline scenario, students would be allowed to switch DLIs without applying for a new study permit that lists the DLI they switch to. In the regulatory scenario, with some exceptions, students who choose to switch DLIs are required to obtain a new study permit prior to commencing studies at the new DLI. Of this cohort, some students may apply for a new study permit too late to receive it on time to attend the new DLI in the immediate semester following. For the purpose of this analysis, in period 1, 50% of students who choose to switch DLIs would not receive their study permit on time to attend the new DLI in the immediate semester following (approximately 15 200 students).

Data on students who switch DLIs is not available. Given the absence of data, the following simplifying assumptions have been made to estimate the impacts on students that must obtain a new study permit when switching DLIs: 1) Students who decide they want to switch DLIs between the months of January and April (i.e. before the end of the winter semester) are assumed to have enough time to apply for a new study permit and begin studies in the fall semester. This cohort of students are not assumed to face any additional impacts for switching DLIs other than the cost of application time and fees. It is assumed that the portion of students that would be in this situation is 50% of switching students; 2) In period 1, the remaining 50% of students are assumed to decide to switch DLIs between the months of September and December. Given current processing times, this portion of students are assumed to not have enough time to obtain a new study permit and attend the new DLI in the immediate semester following the submission of their application. It should be noted that not all post-secondary institutions accept winter intake for new admissions, and students in their first year of post-secondary education may need an additional semester (i.e. at least until the mid-winter semester) to make the decision to switch.

Students may choose to switch DLIs for a variety of reasons, including dissatisfaction with their current institution or academic programs offered, personal circumstances such as to be closer to family members, better opportunities elsewhere, among other reasons. As students become familiar with this new requirement, consideration of the corresponding processing times for obtaining a new study permit, and the possible consequences of a late application submission, it is assumed that a growing percentage of this cohort may choose to apply for a new study permit well in advance of their desired start date at the new DLI, reducing the portion of students not obtaining a study permit on time to attend their new DLI in the immediate semester following the submission of their application. It should be noted there is no data on this subject matter, and IRCC has not consulted students on expected behaviour or responses to this requirement. It is challenging to adequately forecast the portion of students that will continue to be impacted after the requirement has become familiar. For the purpose of this analysis, the percentage of students who would not receive their study permit on time to begin classes in the immediate semester following the submission of their application is assumed to decrease by 10% per period, with 20% of switching students not receiving their study permit on time by period 4. Then in period 5, the percentage is assumed to decrease to 8% and stay constant until the end of the analysis. The total number of students who would be impacted by this requirement is estimated at 53 450 in 10 periods. Given the absence of data and consultation on this requirement, the above-mentioned simplifying assumptions may understate the impact on students.

Students who do not receive their new permit in time to begin studies at their new DLI would have to decide between a) staying in Canada and attending their ’current’ DLI, thus paying tuition fees in a program that they do not wish to pursue; or b) paying transportation costs to temporarily leave Canada and returning once they receive their new study permit. For the purpose of this analysis, and in the absence of data on this topic, it is assumed that 50% of the students impacted would stay in Canada, and 50% would leave the country while waiting for their study permit. Those who stay in Canada would incur costs of approximately $20,000 in tuition fees for the additional semester, while those who temporarily leave Canada would face transportation costs of approximately $5,000.

Additionally, students who decide to switch DLIs between the months of September and December are expected to miss a semester of studies in their preferred program, resulting in a one-semester delay in the completion of their studies (i.e. delaying their graduation by approximately four months). This analysis monetizes these impacts by estimating foregone earnings to students resulting from a delay in their entrance to the workforce as full-time post-secondary degree holders by four months. For the purpose of estimating foregone earning, it is assumed that for four months, the student would forego the difference between a full-time work schedule (37.5 hours per week, at the median hourly wage for individuals with a post-secondary degree of $27)^footnote2 and either an international student work schedule (24 hours per week, at the hourly wage of $24.29) or a wage rate of $0 for students who do not work (18.6% of students are not assumed to work while studying).^footnote3 Moreover, for the purpose of estimating this impact, in each period, 25% of students who have switched DLIs are expected to be in their graduating year and therefore face foregone earnings. The remaining 75% of students who are not in their graduating year are added to the pool of students in subsequent periods.

The costs to international students from the added expense of tuition or transportation costs, and potential foregone earnings are estimated at $675,573,672 PV in 10 periods. Since there is uncertainty in the number of students that would be impacted, sensitivity analysis around relevant variables can be found below.

DLI suspension impacts on students

Study permit applications from clients who were planning to attend a DLI that has been suspended due to non-compliance would be returned during the suspension period (except for students extending their existing permits to complete studies in the suspended institution). Impacted clients will need to submit an application for a different DLI if they wish to continue with their process.

Costs to the Government of Canada

Transition costs

IRCC will incur transition costs in the first period following the implementation of the regulatory amendments, which are estimated at $2,465,202 PV. These costs include developing program delivery instructions, adjusting web pages and preparing communications products, supporting the technical and administrative onboarding of Quebec DLIs into the compliance reporting regime, and updating the IT system to ensure the Global Case Management System, the DLI Portal, and MyAccount portal are up to date for the implementation of the regulatory changes.

Ministerial instructions requiring LOA verification from certain DLIs have been in effect since December 1, 2023, for overseas applications and January 30, 2024, for in Canada applications; therefore, the costs of developing an LOA verification system have already been incurred and are thus not included as incremental costs of the regulatory amendments.

Ongoing costs

The majority of costs to IRCC will be ongoing costs, which are estimated at $9,272,667 PV over 10 periods. These include management of the LOA verification system, including processing DLI submissions and managing communication with DLIs, conducting program integrity activities, as well as activities related to the inclusion of Quebec in the compliance reporting regime, administrative and technical activities related to the inclusion of Quebec DLIs, and ongoing updates to program delivery instructions. Ongoing costs also include those associated with follow-up requests to DLIs, and enforcement activities that will arise from non-compliance.

The requirement to submit a new study permit application to change DLI will result in an increase in the number of study permit applications received by IRCC. Although this increase will require additional resources to process higher volumes, the costs to IRCC will be fully recovered through fees received from study permit applications. Therefore, the cost impact to IRCC is neutral.

Benefits

Program integrity benefits

The regulatory amendments will allow IRCC to effectively respond to integrity challenges and address common occurrences of unethical behaviours that undermine the integrity of the program.

The enhanced LOA verification system will allow IRCC to verify each LOA submitted with study permit applications before they are processed, allowing for early identification of fraudulent LOAs and preventing the approval of non-genuine applications or applications from students who have been defrauded.

Codifying the requirement to submit biannual compliance reports will allow IRCC to close the compliance gap that exists in this regime and add Quebec DLIs to this requirement. The codification will help IRCC obtain accurate and up-to-date information about the enrollment status of all international students Canada-wide and identify students who are not meeting the conditions of their study permit.

Requiring international students to obtain a new study permit when transferring to a new DLI will ensure that IRCC can more accurately assess and track student compliance with conditions set out in their permit and identify when they change DLIs. Requiring students to apply for a study permit when switching DLIs, rather than start attending the new DLI while their application is processed, reduces the complexity of compliance reporting by limiting the situations where students could switch prior to confirmation of the new study permit. It also mitigates the impact on students by preventing situations where, if their new application is rejected, students could be left without a valid status in Canada.

Both the LOA verification requirement and the codification of compliance reporting imposes requirements on DLIs to provide accurate information about enrollment of international students. The amendments also allow IRCC to request further documentation from DLIs if they do not comply with the conditions as set out in the regulatory amendments, or if there are reasons to suspect non-compliance. When IRCC determines that a DLI has failed to comply, and the frequency, seriousness and corrective efforts from the DLI warrant it, they may be added to a public DLI suspension list for a maximum period of 12 consecutive months, during which any applications for new study permits that are submitted to IRCC with a DLI included in the suspension list will be returned. These changes will allow IRCC to impose consequences for DLIs that have not submitted compliance reports as required in the regulations.

Benefits to international students

The regulatory amendments will increase the hours that eligible international students can work off campus from 20 to 24 hours. This change will help international students offset increasing costs of living, should they wish to work an additional 4 hours a week.

Based on IRCC’s survey of international students who were eligible for the public policy that waived the 20-hour-per-week work limit, this analysis assumes that 75.1% of eligible students will work off campus, with 73.1% of those who work off campus estimated to work more than 20 hours per week.^footnote4 For the purpose of this analysis, study permit holders who also hold a work permit, including a co-op work permit, are excluded from the benefits estimation. This cohort of students will already be authorized to work longer hours as per their work permit.

For the purpose of this analysis, in period 1 it is anticipated that 295 421 eligible international students will benefit from the increase to work hours, having the opportunity to work an additional 128 hours per year. The volume of students in period 1 is estimated by using the number of eligible students, and applying percentages obtained from IRCC’s survey of international students for the public policy (i.e. 75.1% are assumed to work off campus, and of those, 73.1% are assumed to work the additional 4 hours per week). This volume is expected to grow at the same rate as study permit holders, estimated at an average annual growth of 5.5% per period.

Students eligible for this change will continue to have the opportunity to work full-time during academic breaks. This includes the summer break for students who are enrolled in programs that run from September to April. The benefit to international students is estimated as their increase in earnings for the additional hours that they will be able to work off campus. At an hourly wage rate of $24.29, the benefits of the increase to off-campus work hours limit are estimated at $6.9 billion PV over 10 periods.

The increase in off-campus work hours will increase the supply of labour hours from international students. This will be particularly evident in low-wage industries where a greater portion of international students’ work. This may result in increased competition for Canadian (and Canadian permanent residents) workers in these industries, in particular for younger workers who are more likely to compete for jobs and/or work hours in these low-wage industries. It is important to note that some of the industries where there is a high labour participation rate for this cohort of international students have experienced high job vacancy rates in recent years. For example, according to the Canadian Employer Employee Dynamics Database (CEEDD) 2021 data, approximately 23.9% of international students without a work permit and who had T4 earnings, had earnings in the accommodations and food service industries. Based on the Job Vacancy and Wage Survey from March 2023, accommodation and food services sector had the highest job vacancy rate across all sectors (7.6%).^footnote5 The most recent Job Vacancy and Wage Survey data reports that the accommodations and food service industry records the second-highest job vacancy rates among recorded industries as of June 2024, with a 4.4% rate, with health care and social assistance industries reporting the highest rate (4.8%).^footnote6 The regulatory amendments are expected to benefit industries that are experiencing high vacancy rates, while also alleviating financial difficulty experienced by students in recent times.

Cost-benefit statement

• Number of periods: 10 (10 periods of 12 months 2024–2033)
• Price year: 2023
• Present value base year: Period 1 (2024)
• Discount rate: 7%

Monetized benefits

Impacted stakeholder	Description of benefit	Period 1	Period 5	Period 10	Total (present value)	Annualized value
International students	Increase in earnings	$918,500,625	$811,025,435	$1,403,962,271	$6,903,921,344	$982,963,082
All stakeholders	Total benefits	$918,500,625	$811,025,435	$1,403,962,271	$6,903,921,344	$982,963,082

Monetized costs

Impacted stakeholder	Description of cost	Period 1	Period 5	Period 10	Total (present value)	Annualized value
Government of Canada	IRCC transition costs	$2,465,202	$0	$0	$2,465,202	$350,989
	IRCC ongoing costs	$0	$1,396,468	$1,396,468	$9,272,667	$1,320,219
DLIs	LOA verification	$1,370,827	$1,755,820	$3,039,492	$14,335,268	$2,041,020
	Biannual reporting	$93,750	$997,730	$1,186,061	$6,834,342	$973,057
International students	Value of time to reapply to change institutions	$461,251	$407,279	$705,039	$3,466,999	$493,623
	Reapplication fees to change institution	$4,557,441	$4,024,167	$6,966,217	$34,256,060	$4,877,292
	Foregone earnings	$34,744,438	$6,427,897	$9,468,335	$114,146,168	$16,251,846
	Additional tuition or travel costs	$190,326,320	$26,888,951	$46,547,334	$561,427,503	$79,934,646
All stakeholders	Total costs	$234,019,229	$41,898,312	$69,308,947	$746,204,209	$106,242,692

Summary of monetized benefits and costs

Impact	Period 1	Period 5	Period 10	Total (present value)	Annualized value
Total benefits	$918,500,625	$811,025,435	$1,403,962,271	$6,903,921,344	$982,963,082
Total costs	$234,019,229	$41,898,312	$69,308,947	$746,204,209	$106,242,692
Net impact	$684,481,396	$769,127,123	$1,334,653,324	$6,157,717,135	$876,720,390

Quantified (non-monetized) and qualitative impacts

Positive impacts

• The LOA verification requirement will prevent the processing of applications that include non-genuine LOAs. This will in turn reduce the impact on students who may have been defrauded with a fraudulent LOAs, preventing them from coming to Canada to find that they cannot attend the DLI they planned to attend.
• The codification of biannual compliance reports for all DLIs, including Quebec DLIs, will allow IRCC to close the compliance gap that exists in the current compliance regime and help IRCC obtain accurate information on the enrollment status of all international students. This will facilitate the identification of students that are not meeting the conditions of their study permit.
• Requiring international students to obtain a new study permit when transferring to a new DLI will ensure that IRCC can more accurately assess DLI biannual reports. It also ensures that students are attending the DLI listed on their document, which is a condition of their study permit, and allows for keeping records on students attending DLIs across Canada.
• The regulatory amendments propose consequences for DLI that are non-compliant with the reporting requirement. This will allow IRCC to place a non-compliant DLI on a suspension list and stop processing new study permit applications to deter clients from attending a non-compliant DLI for the suspension period.

Negative impacts

• The volume of study permit applications is expected to increase due to the requirement for students switching to a new DLI to apply for a new study permit. IRCC will reallocate resources to ensure it continues to meet processing standards and reduce costs to students who reapply for a study permit.
• Approximately 315 850 students in 10 periods will be required to reapply for a study permit to attend a different DLI than that indicated in their existing study permit. The requirement for students to reapply for a new study permit to switch DLIs may result in increased processing time and may result in some students not obtaining their study permit on time to attend the new DLI (estimated at 53 450 students in 10 periods). This could result in uncertainty and stress to students who are unable to attend their desired DLIs, facing delays in the completion of their studies.
• The increased limit of work hours for international students may result in increased competition with Canadian job seekers in certain industries. However, international students have high labour participation in industries experiencing high job vacancy rates thus the impact is not expected to be significant.

Sensitivity analysis

This cost-benefit analysis makes assumptions around variables that may be subject to uncertainty. It is important to acknowledge this uncertainty, in particular, the presence of uncertainty in the percentage of students impacted by the requirement to apply for a new study permit when changing DLIs, and not being able to attend their DLI while their study permit application is finalized. As discussed in the cost section above, the central analysis assumes that in period 1, 50% of students switching DLIs would not be able to attend the new institution in the immediate semester following the submission of their application. This percentage is assumed to progressively decrease, reaching 8% by period 5 and stay constant until the end of the analysis. Given the absence of data and consultations on student behaviour and responses to this requirement, these simplifying assumptions may underestimate the impact on students who choose to switch DLIs. To identify the impact of these assumptions, sensitivity analysis results are presented below.

Variable	Values		Result (10 periods, PV)
Percentage of students not receiving their new study permit on time to attend the new DLI in the immediate semester following their application submission	Sensitivity analysis (upper bound)	Period 1-10: 50%	$1,719,097,752
	Central scenario	Period 1: 50% Period 2: 40% Period 3: 30% Period 4: 20% Period 5-10: 8%	$675,573,672

Small business lens

Analysis under the small business lens has concluded that the amendments will impact small businesses.

For this proposal, costs to businesses will be limited to those incurred by private DLIs. Therefore, for the purpose of the small business lens, only impacts sustained by private DLIs are considered.

The regulatory amendments require DLIs to participate in LOA verification and compliance reporting. These requirements will impact DLIs that are small businesses, and the impact will be relative to the number of international students expected to attend or already attending these DLIs. The total costs to small business are estimated at $7,473,669 PV over 10 periods.

Small business lens summary

• Number of small businesses impacted: 777
• Number of periods: 10 (10 periods of 12 months 2024–2033)
• Price year: 2023
• Present value base year: Period 1 (2024)
• Discount rate: 7%

Costs

Administrative or compliance	Description of cost	Present value	Annualized value
Administrative	Biannual reports	$4,003,729	$570,041
Compliance	LOA verification	$3,469,939	$494,041
Total	Total costs	$7,473,669	$1,064,082

Net impacts

Amount	Present value	Annualized value
Net cost on all impacted small businesses	$7,473,669	$1,064,082
Average net cost per impacted small business	$9,621	$1,370

One-for-one rule

The one-for-one rule applies since there is an incremental increase in the administrative burden on businesses, and the amendments will be considered a burden “in” under the rule. The regulations result in an additional annualized cost of $210,450 (in 2012 Can$) for administrative burden as estimated using the Red Tape Reduction Regulations’ prescribed method. No regulatory titles are repealed or introduced.

For this proposal, costs to businesses will be limited to those incurred by private DLIs. Therefore, for the purpose of the one-for-one rule, only impacts sustained by private DLIs are considered.

The codification of the DLIs’ biannual compliance reporting on student status and responding to follow-ups from IRCC increase the administrative burden on DLIs. Although the majority of DLIs required to submit reports already do so, those that do not will now be required to do so under the amended regulations (6%–8%). The addition of Quebec to this compliance regime will also impose an administrative burden particularly on Quebec DLIs.

The LOA verification requirement does not impose an administrative burden on businesses, as this is a distinct compliance requirement in itself, and not a requirement to demonstrate compliance.

Regulatory cooperation and alignment

The proposal is not related to a commitment under a formal regulatory cooperation forum.

The amendments clarify that DLIs and students must comply with federal conditions, and they complement and support provincial and territorial efforts for DLIs to meet higher standards to enroll and protect international students.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan has concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

The regulations are not expected to have a negative impact on any particular group of international students, compared to the scenario where no regulations are amended, and federal conditions continue to apply to DLIs.

Some students may be negatively affected by the requirement related to switching DLIs. This may cause distributional impacts on students with a lower economic status.

The ability to work an additional four hours per week will benefit students who are experiencing financial difficulty. Within the international student population, financial need necessitating increased work hours may vary depending on students’ country of origin, socio-economic background, and other factors. Among the respondents to IRCC’s 2023 survey on off-campus work who reported working off campus, men (77%) were slightly more likely to report working more than 20 hours per week compared to women (71%), and to respondents who identified as non-binary (53%). Those who identified as South Asian (79%), Southeast Asian (75%), and Latin American (73%) were more likely to report working more than 20 hours per week compared to those who identified as being West Asian (65%), White (52%), or East Asian (49%).

Implementation, compliance and enforcement, and service standards

Implementation

The regulatory amendments come into force upon registration. Changes were made to the electronic immigration processing system (Global Case Management System [GCMS]) to ensure that study permit applications are not processed and instead are returned to the applicant in situations where that particular DLI is on the suspension list. Changes were made to MyAccount, a secure portal that allows foreign nationals to apply for, and make changes to, their application or status and view IRCC’s decision on their application. IRCC has also ensured that a secure means to allow DLIs to submit additional documents and evidence is provided as part of the conditions that must be met and the verification scheme.

The regulations that hold DLIs accountable in providing reports and information related to the compliance reporting and LOA verification are strictly within federal purview. Under the regulations, PT responsibility to investigate and take action to de-designate institutions that are non-compliant with federal and provincial/territorial standards will remain unchanged.

DLIs already follow a process for verifying an LOA and completing compliance reports through two separate secure portals and this implementation process will not change with the regulations. When a client submits an application, IRCC notifies the DLI through the secure verification portal to validate the letter of acceptance, and DLIs must respond with a verification status of “match,” “no match” or “cancelled” within 10 days. If a DLI does not respond within 10 days, the verification is noted as incomplete and the application is closed and sent back to the client. This process can happen as soon as a “no” response is received. A similar procedure is in place for the compliance regime. Once IRCC initiates a request to the DLI, it must complete the report about the enrollment status of study permit holders through a DLI-secured portal within 60 days and must respond to ad hoc requests for any corrections or additional information within 10 days. When the report is submitted to IRCC, it is closed for any further changes from the DLIs.

Under the regulations, this existing process will be maintained as part of routine procedures. IRCC will continue to have a record that may indicate whether a DLI has made efforts to submit a compliance or LOA verification report. For example, IRCC will have a record of whether the DLI has been previously responsive, reported technical issues or has received the necessary tools, training and reminders in order to submit a report. IRCC may also inform PTs of the list of non-compliant DLIs for the PTs to take further investigative and de-designation actions.

The amendments provide IRCC with a new ability to review previously submitted reports and request additional information from the DLI to support IRCC’s verification of a DLI’s compliance status. Based on its assessment of all information available, IRCC may

• accept the provided justification for the non-compliance such as unforeseen circumstances, unknown challenges, or technological errors; or
• initiate a verification and procedural fairness process that may lead to a warning or suspension for the violation in question.

During this period, IRCC will communicate with the relevant PT to ensure continued collaboration between the federal and PT departments.

Given that DLIs in Quebec are not currently part of the bi-annual compliance reporting regime, though Quebec DLIs do verify LOAs through the LOA portal, Quebec DLIs will not be subject to submitting compliance reports initially on coming into force. IRCC has been holding separate discussions with Quebec to work through an approach and process for onboarding its DLIs, which is expected to take approximately one year, after which DLIs will be required to report biannually, upon request by the Minister.

Guidance and public website communication directed toward students provide them with information about the requirements to remain enrolled and pursue studies at the DLI listed on the study permit, including if they enrolled in joint programs or exchanges. The policy guidance that is provided to IRCC officers through IRCC’s internal web pages and posted online to the public on IRCC’s website outlines responsibilities on IRCC officers on how to interpret the regulations and apply them operationally. For the public, the guidance outlines the obligations on DLIs and students with respect to non-compliance and the consequences of not reapplying for a study permit if a student changes DLIs. This guidance is extended to highlight the circumstances where officers must continue to process a study permit renewal for students that fall into one of the categories: the DLI closed, or the program was discontinued; the DLI was suspended; or the DLI was de-designated by the PT.

Should the student’s new study permit for the new DLI be refused for not meeting the regulatory requirements, IRCC will provide a letter informing the student of their options to take a course of action. Students will have the option of applying for restoration of their study permit at the existing DLI and, in the meantime, would benefit from maintained status. Alternatively, students may choose to apply to change their status as a visitor (or apply for a work permit), or they may depart Canada.

IRCC is also ensuring that stakeholders are informed of changes that have been made to the proposed regulations, including their impacts on students. The Department is informing PTs in writing, as well as through the IRCC Working Group with provincial and territorial immigration and education ministries. IRCC is also informing DLIs and national education associations through technical briefings with the sector. DLIs will also be encouraged to share this information with their students.

IRCC sent a letter to PTs and national associations about the new regulations, which is shared with its members and clients at large, including international students and others engaged in the student space. IRCC conducted outreach activities that included public announcements that informed stakeholder groups of the new requirements. Social media platforms have been utilized to inform students of their obligations under the regulations as well as the changes made to the proposed regulations.

IRCC provided guidance to its officers, updated field manuals where needed and trained officers on their roles in implementing the regulations. The websites of IRCC and the Canada Border Services Agency (CBSA) are updated.

Compliance and enforcement

IRCC has adopted a verification process as part of its assessment whether a DLI is compliant with the conditions. DLIs will be asked to produce additional documents and information if the conditions are not met, including if there are inaccuracies in the information provided. IRCC will be able to take enforcement action against DLIs that do not comply with the conditions by placing them on a public suspension list that is managed by IRCC for up to a year. IRCC will have the authority to impose a shorter suspension period for a minor violation or a longer suspension period for a major violation. The DLI will not be allowed to receive new international students for that period. New applications with a letter of acceptance from a DLI on the suspension list will not be processed and will be returned to the applicant.

Enforcement actions will be taken in cases when a student changes DLIs without authorization. In cases where a student may attend a new DLI due to the specified circumstances, IRCC will verify the information on the existing permit that is provided as part of the new application as instructed in the program guidance instructions. When a violation does occur, students will be provided with a notification letter and be informed that they must reapply for a study permit, leave the country, or change their status. IRCC may decline to issue a study permit to a student who fails to comply with the conditions of their permit to attend the specific DLI listed on the permit, may recommend that the CBSA issue a removal order from Canada, or both.

Service standards

The service standard for processing in-Canada study permit applications is 120 days. Currently, processing times are approximately 68 days. Initial processing volumes and processing times may increase slightly due to the new requirements regarding DLI switching. IRCC intends to shift resources as needed to meet the 120-day service standard.

Contact

Gabriela De Jager
Acting Director
Temporary Economic Immigration Branch
365 Laurier Avenue West
Ottawa, Ontario
K1A 1L1
Email: IRCC.TEIBISPPPolicy-DIETPPEIPolitique.IRCC@cic.gc.ca