Canada Exempts Master’s & PhD Students From Study Permit Cap Starting 2026: What It Means for International Students

Canada has announced a major policy shift that will positively impact thousands of international students planning to pursue higher education. Beginning January 1, 2026, international students applying for Master’s and PhD programs in public institutions will be fully exempt from Canada’s study permit cap

IRCC exempts graduate students …

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In addition, doctoral students and their accompanying family members will benefit from a new two-week express processing pathway for study and work permits

IRCC exempts graduate students …

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This blog explains the new updates, their impact on prospective students, and how these changes tie into Canada’s broader Immigration Levels Plan 2026–2028.

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Key Highlights at a Glance

• Master’s and PhD students no longer need a PAL/TAL starting 2026

  IRCC exempts graduate students …

• Graduate students exempt from the federal study permit cap beginning Jan 1, 2026

• Doctoral students get two-week processing for permits if applying from outside Canada

  IRCC exempts graduate students …

• Family members accompanying PhD students also qualify for expedited processing

• Canada plans to cut new international student admissions in half in 2026 under the Immigration Levels Plan 2026–2028

  IRCC exempts graduate students …

• Lower inflow means reduced competition for PGWP holders and PR pathways

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1. Graduate Students Exempt From Canada’s Study Permit Cap – What Does It Mean?

Beginning in 2026, Canada will remove the PAL/TAL requirement for Master's and doctoral applicants, and these students will be fully excluded from the study permit cap

IRCC exempts graduate students …

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✔ No Need for PAL/TAL

Previously, PAL/TAL letters required advance tuition deposits at Designated Learning Institutions (DLIs). This increases financial burden.
Under the new rules, students save money upfront and avoid provincial attestation delays.

✔ No Study Permit Cap Restrictions

Applications will not be counted against IRCC’s annual cap, allowing:

• Faster processing

• Higher approval chances

• Stable intake for universities

• No fear of applying “after the cap is reached”

Real-Time Example

Sarah from India receives admission to a 1-year Master’s program at a public university in Ontario for Fall 2026.
Earlier, she would have needed:

• A PAL/TAL

• A deposit of CAD 5,000–10,000

• To race against the provincial study permit quota

From Jan 2026 onwards, she directly submits her study permit application without any provincial attestation and without worrying about the cap closing early.

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 2. Fast-Track Processing for Doctoral Students – 2 Weeks!

IRCC now offers expedited two-week processing for PhD applicants and their family members, provided they apply:

• From outside Canada

• Online

• With a valid admission to a doctoral program

  IRCC exempts graduate students …

Eligible family members can receive quick approvals for:

• Visitor visas

• Work permits

• Study permits

Real-Time Example

A PhD applicant from Nigeria applies for a study permit with his spouse and 3-year-old child.
Because he qualifies under the new express processing stream, the entire family receives their approvals in just 14 days, allowing him to start his research program on time.

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3. Study Permit Requirements That Remain the Same

Despite the new exemptions, graduate students must still submit standard supporting documents, including:

• Letter of Acceptance (LOA)

• Proof of identity (passport + photos)

• Proof of funds for themselves and accompanying family

• Letter of explanation (recommended)

• Additional documents depending on country/visa office requirements (medical, police certificate, etc.)

  IRCC exempts graduate students …

The exemption only removes PAL/TAL and study permit cap limitations—other eligibility criteria remain unchanged.

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4. Immigration Levels Plan 2026–2028: Fewer Student Admissions Ahead

Canada’s Immigration Levels Plan reveals a massive reduction in new international student admissions:

Year	Targeted Student Admissions	Previous Target
2026	155,000	305,900
2027	150,000	305,900
2028	150,000	—
IRCC exempts graduate students …

This is nearly a 50% cut, aligning with current trends where Canada is expected to fall short of 2025 study permit targets.

Why the Reduction?

IRCC aims to:

• Manage infrastructure and housing pressure

• Stabilize the temporary resident population

• Balance student numbers with PR capacity

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5. How Lower Student Intake Creates More Opportunities for Current Students

Fewer incoming international students means:

• Less competition for part-time jobs

• Higher chances for PGWP-based work opportunities

• Better pathways for PR, especially through:

  • Canadian Experience Class (CEC)

  • Provincial Nominee Programs (PNPs)

  • Express Entry economic streams

The federal government clearly states a policy focus on transitioning in-Canada candidates to PR, especially those with Canadian work experience

IRCC exempts graduate students …

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Real-Time Example

Miguel completes a 2-year diploma in Ontario in 2025 and receives his 3-year PGWP.
Because fewer international students are expected in 2026–2028, there will be:

• Fewer PGWP holders

• Less competition for entry-level NOC jobs

• Higher CRS scores for in-Canada Express Entry pools

This boosts Miguel’s chances of receiving an ITA under CEC or a provincial nomination.

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6. Provincial Nominee Programs (PNPs) to Expand in 2026

The federal government plans to increase PNP admissions by 66% in 2026 compared to 2025 levels

IRCC exempts graduate students …

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This is excellent news for international students, especially those graduating from:

• Ontario

• British Columbia

• Alberta

• Manitoba

• Atlantic provinces

More nominations mean:

• Reopening of paused student streams

• New graduate-focused PNP pathways

• Easier transition to permanent residence

Example: British Columbia

BC temporarily paused launching 3 new student pathways due to allocation limits.
With increased allocations expected in 2026, these streams will likely open—supporting more graduate students seeking PR.

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7. International Students Still Form a Major Portion of Temporary Residents

Even with the reduced numbers, international students will continue to represent 40% of all temporary resident admissions between 2026–2028

IRCC exempts graduate students …

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Year	Workers (TFWP + IMP)	Students	Total
2026	230,000	155,000	385,000
2027	220,000	150,000	370,000
2028	220,000	150,000	370,000

This highlights that Canada still heavily values the international education sector.

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8. How These Changes Will Shape Canada’s Education Landscape

Master’s & PhD students will have the smoothest entry pathway ever.

No caps. No PAL/TAL. Faster approvals. Lower upfront costs.

Doctoral candidates will experience the fastest processing in IRCC history.

This supports Canada’s goal of attracting global researchers, innovators, and skilled academics.

PR prospects improve for those already in Canada.

Fewer newcomers = more opportunities for PGWP holders.

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Final Thoughts: Should You Apply for Graduate Studies in Canada?

If you’re considering a Master’s or PhD program, 2026 onwards is one of the best times to apply due to:

• Cap exemption

• Reduced costs

• Faster processing

• Easier access to PGWP and PR pathways

If you’re already in Canada as a student, the reduced competition will strengthen your chances of settling permanently.