Global News has learned that Ontario colleges and universities will receive authority to issue only about 117,000 provincial attestation letters (PALs) for international students in 2025—down 23 % from the 2024 allocation. The cut is part of Ottawa’s two-year cap on study permits, but the size of Ontario’s reduction is amplified by the province’s failure to use 42 % of its 2024 quota.
How the new formula works
Under rules introduced last January, provinces distribute federal permit ceilings to post-secondary institutions. If a college uses less than 50 % of its allotment by June, Ontario can now claw back 20 % of the remainder, redistributing it to schools with stronger demand or to priority graduate programs. The ministry says every institution will still receive at least the number of permits it actually utilised in 2024, softening the blow for smaller regional colleges.
Implications for the higher-education sector
• Revenue: International tuition accounts for roughly one-third of Ontario colleges’ operating budgets; a 23 % cut could erase more than CA$700 million in revenue next year.
• Programs: Centennial College has already suspended 49 programs, and union officials warn up to 10,000 staff positions may be at risk across the sector.
• Housing: Fewer intakes may ease pressure on local rental markets, aligning with federal housing-supply targets.
![Ontario handed 23 % fewer study-permit spaces for 2025 as unused quota triggers claw-backs]()
What students and employers should do
Prospective students need to apply early, focus on programs aligned with labour-market shortages, and secure housing proof to bolster permit chances. Employers that hire co-op or recent-graduate talent should anticipate smaller candidate pools and intensify domestic recruitment or automation planning.
If you’re preparing a study-permit application under these tighter provincial quotas, VisaHQ can simplify the paperwork and timeline. The online platform guides applicants through Canada’s latest PAL requirements, helps assemble supporting documents, and tracks submission deadlines—reducing the risk of costly mistakes. Explore its tailored Canadian services at https://www.visahq.com/canada/.
National angle
The Ontario claw-back mechanism is being watched by other provinces that also left PALs unused in 2024. If replicated, the strategy could drive a nationwide redistribution of study-permit spaces toward institutions that can demonstrate capacity and genuine student demand, further tightening the overall pipeline of future graduates eligible for post-graduate work permits and, later, permanent residence.
How the new formula works
Under rules introduced last January, provinces distribute federal permit ceilings to post-secondary institutions. If a college uses less than 50 % of its allotment by June, Ontario can now claw back 20 % of the remainder, redistributing it to schools with stronger demand or to priority graduate programs. The ministry says every institution will still receive at least the number of permits it actually utilised in 2024, softening the blow for smaller regional colleges.
Implications for the higher-education sector
• Revenue: International tuition accounts for roughly one-third of Ontario colleges’ operating budgets; a 23 % cut could erase more than CA$700 million in revenue next year.
• Programs: Centennial College has already suspended 49 programs, and union officials warn up to 10,000 staff positions may be at risk across the sector.
• Housing: Fewer intakes may ease pressure on local rental markets, aligning with federal housing-supply targets.
What students and employers should do
Prospective students need to apply early, focus on programs aligned with labour-market shortages, and secure housing proof to bolster permit chances. Employers that hire co-op or recent-graduate talent should anticipate smaller candidate pools and intensify domestic recruitment or automation planning.
If you’re preparing a study-permit application under these tighter provincial quotas, VisaHQ can simplify the paperwork and timeline. The online platform guides applicants through Canada’s latest PAL requirements, helps assemble supporting documents, and tracks submission deadlines—reducing the risk of costly mistakes. Explore its tailored Canadian services at https://www.visahq.com/canada/.
National angle
The Ontario claw-back mechanism is being watched by other provinces that also left PALs unused in 2024. If replicated, the strategy could drive a nationwide redistribution of study-permit spaces toward institutions that can demonstrate capacity and genuine student demand, further tightening the overall pipeline of future graduates eligible for post-graduate work permits and, later, permanent residence.
