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The national organizations representing 234 postsecondary institutions in Canada are expressing “significant concerns” about the federal government’s two-year cap on international students and say the move will have lasting impacts on the country’s economy.

In a joint letter to Immigration Minister Marc Miller on Tuesday, Universities Canada and Colleges and Institutes Canada said the recent decision to cap international study permits in a bid to rein in skyrocketing growth will affect all students.

“While we acknowledge the efforts made to address challenges associated with unscrupulous actors, the implementation of the cap has the potential to bring about widespread and long-lasting consequences for both Canadian and international students,” it said.

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The letter is signed by Pari Johnston, president and CEO of Colleges and Institutes Canada, and Philip Landon, interim president and CEO of Universities Canada. The groups represent the national voices of not-for-profit higher education institutions.

The organizations say their main concern is a moratorium on processing new international student study permits, especially for college and undergraduate students. They said this decision is already affecting enrolments, as students are beginning to apply for the fall semester.

Ottawa has given provinces until March 31 to develop a system for newly required letters of attestation for international undergraduate students. Although no province outside of Quebec has such a system, the requirement is already in place, which has led to a “sudden halt” in applications being processed, the letter said.

This means students are likely to choose different locations for study, “posing a significant risk to Canada’s post-secondary sector and hindering our efforts to attract global talent for years to come.”

“The potential consequences are difficult to overstate. The cap will have far-reaching effects on Canadian communities, given that international students play a pivotal role in bolstering the economy by contributing over $22-billion a year to our country,” the letter says.

“Their contributions are vital in sustaining local labour markets, increasing diversity and meeting the demands of high-growth sectors. The policy’s impact extends far beyond institutions, affecting businesses and communities.”

The groups are calling on Ottawa not to impose the letter of attestation requirement for college and undergraduate study permit applications until at least March 31, or until provinces have established a process. They also ask for “urgent consultations” to modify the cap and to “mitigate the negative impacts.”

A spokesperson for Mr. Miller did not immediately respond to a request for comment. Neither did spokespeople for Ontario or British Columbia, which have a large number of international students. In 2015, there were 352,325 foreign students in Canada; by the end of 2023 that number had soared to 1,028,850.

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The head of Colleges Ontario, which represents the province’s 24 publicly funded colleges, has also said the federal government has created chaos for prospective international students by imposing what amounts to a moratorium on their applications for study permits.

Ontario’s public colleges play host to a large proportion of Canada’s international students. They accounted for about 40 per cent of study permits issued in 2022. Many of these schools rely on the fees foreign students pay, which are much higher than domestic tuition.

The cap on study permits is set to reduce the amount issued next year by about 35 per cent, compared with 2023. Set numbers of study permits will be allocated to each province according to its size. Ontario is expected to face a reduction of about 50 per cent.

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