Immigration, Refugees and Citizenship Canada (IRCC) has made major changes to its immigration policies by suspending its much-celebrated Student Direct Stream (SDS) program for international students. The move effectively ended the popular route for applicants from 14 countries, including India, Pakistan and the Philippines, who had previously benefited from faster processing times and higher approval rates under the SDS.
Canceling the SDS stream is part of a broader strategy by the Canadian government to regulate the influx of international students and manage increasing pressure on the country’s housing and social services. The move has significant implications for students, especially from India, who rely on the stream for faster visa processing and higher chances of approval. After setting new measures to control the number of study permits, including a cap of 437,000 new study permits for 2025, Indian applicants are now facing increasing challenges in their pursuit of Canadian education.
End of streamlined process
Introduced in 2018, the SDS program was designed to streamline the study permit process for students from selected countries. This allowed applicants to benefit from faster processing times – often 20 days – if they met certain criteria, including proof of financial stability (via a Guaranteed Investment Certificate, or GIC), language proficiency (via a high score on the IELTS or TEF). and a letter confirming acceptance from a Canadian institution. Under SDS, applicants had an approval rate of about 95%, much higher than the standard application process, which can take weeks or even months.
However, the end of the SDS program reflects broader changes in Canadian immigration policy. The federal government’s decision to limit the number of study permits issued each year is part of an effort to stabilize the country’s foreign student population, which has grown rapidly in recent years. With a record 807,000 study visa holders in 2023 and increasing pressure on housing and public services, Canada has introduced several reforms, which now place strict academic and language requirements on students, as well as limits on work permits for their spouses.
Commenting on the impact of the change, Saurabh Arora, founder and CEO of University Living, a platform that helps students apply to study abroad, said, “Canada seems to have prioritized the recent measures, including tighter immigration caps and increased restrictions – aimed at globally renowned institutions. Quality students should adopt a ‘wait and see’ approach as upcoming events such as the Canadian elections in 2025 could affect this stance.” He suggested that students consider exploring other study destinations such as Germany, Ireland and Singapore, which may offer similar opportunities without the same bureaucratic hurdles.
Impact on Indian students
This policy change is particularly important for Indian students, who have formed the largest group of international students in Canada in recent years. In 2023, about 70% of Indian student visa applicants used the SDS stream. With the program now suspended, these students will have to rely on the regular application process, which has historically had very slow processing times and low acceptance rates. Here’s a look at how this change will affect Indian applicants:
Increased processing time: The most immediate impact on Indian students will be longer processing times. Under the SDS program, applications were processed in about 20 days, but without this expedited system, students now face an average processing time of 8 weeks, a significant delay. For students planning to begin their studies in Canada, this means they will have to apply well in advance and face uncertainty about their visa status.
Lower acceptance rates: Another major concern is the low acceptance rate for Indian applicants. Under SDS, the approval rate for Indian students was consistently high, reaching 73% in early 2023. In contrast, those who applied through the regular stream had an acceptance rate of less than 10%. After losing the SDS route, Indian students will now face tougher scrutiny, potentially reducing their chances of getting a study permit.
Increased financial proof requirements: In addition to longer processing times and lower acceptance rates, students will now be required to meet stricter financial requirements. The Canadian government has increased cost-of-living requirements for international students, further complicating the financial burden for many applicants. While students under the SDS program were already required to demonstrate the ability to pay for their tuition and living expenses, the new rules are expected to be even stricter. This can pose particular challenges for students from low-income families.
Fewer job opportunities for spouses: One of the most overlooked consequences of SDS suspension is the impact on spouses of international students. Under previous regulations, spouses of students in the SDS program were eligible for an open work permit, allowing them to support their families while living in Canada. However, with the new policy revision, this facility has been limited. The reduction in work permits for spouses will add financial stress to Indian students and their families, making Canada a less attractive destination for those seeking to study and provide for their loved ones.
Canada’s Comprehensive Immigration Strategy
Changes to the student visa system will not only reduce the number of international students. Canada’s immigration overhaul also includes new caps on the number of study permits issued in 2025, which will be limited to 437,000 at all educational levels, from undergraduate to postgraduate. For reference, in 2023, Canada issued 485,000 study permits, meaning the new cap represents a significant reduction.
Furthermore, Canada is also implementing strict eligibility requirements for students seeking a Post-Graduation Work Permit (PGWP), which allows international students to gain work experience after completing their studies. These new eligibility criteria include more stringent language and area of study requirements, which may disqualify many potential applicants.
In addition to these regulations, the Canadian government is reducing the availability of multiple-entry visas, which are commonly used by international students to enter and exit Canada during their studies. This change will make it more difficult for students to travel between their home country and Canada.
Diplomatic row and its effects
The timing of these changes is also significant given the growing diplomatic tensions between India and Canada. Relations between the two countries have deteriorated in recent months, with issues such as trade disputes and political differences coming to the fore. This has raised concerns among Indian students who see Canada as a top destination for higher education.
Aritra Ghoshal, Founder and Director, OneStep Global commented, “Canada’s decision to scrap the Student Direct Stream (SDS) program, which has been an important fast-track visa pathway for Indian students, will undoubtedly affect students’ plans and preferences. The exact reasons behind it are not entirely clear, it may be linked to a broader immigration policy adjustment or an attempt to manage the volume of applications amid the current diplomatic tensions.”
The change in Canada’s immigration policies also reflects growing concern within the country about the strain the influx of international students is putting on its housing market. There are growing concerns that the rapid growth of the student population is contributing to rising rents and overstretched public services, leading to frustration among local residents.