Canada Student Visa Change: How SDS Suspension Affects Indian Students

Immigration, Refugees and Citizenship Canada (IRCC) has made a major change in its immigration policies by suspending the much-celebrated Student Direct Stream (SDS) program for international students. The move effectively ended a popular route for applicants from 14 countries, including India, Pakistan and the Philippines, which previously enjoyed accelerated 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 the growing pressure on the country’s housing and social services. The move has significant implications for students, especially from India, who have relied on the stream for faster visa processing and better chances of approval. With new measures in place to control the number of study permits, including a cap of 437,000 new study permits by 2025, Indian applicants now face increased challenges in pursuing Canadian education.
The end of a streamlined process
Introduced in 2018, the SDS program was designed to simplify the study authorization process for students from certain countries. It allowed applicants to benefit from faster processing times – often as little as 20 days – if they met certain criteria, including proof of financial stability (through a guaranteed investment certificate or GIC), language skills (through a higher IELTS score or TEF), and a confirmed acceptance letter from a Canadian institution. According to SDS, applicants had an approval rate of nearly 95%, far higher than the standard application process, which could 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 impose stricter academic and language requirements on students, as well as limits on work permits for spouses their.
Saurabh Arora, founder and CEO of University Living, a platform that helps students with study abroad applications, commented on the impact of this change, saying: “The recent measures Canada is taking, including tighter immigration caps and increased restrictions, seem to give high priority. – quality students pursuing globally renowned institutions. We will have to take a “wait and watch” approach as future events such as the 2025 Canadian election may influence this. attitude”. He also suggested 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
For Indian students, who have constituted the largest group of international students in Canada in recent years, this policy change is particularly significant. In 2023, nearly 70% of all Indian student visa applicants used the SDS stream. With the program suspended, these students will have to rely on the regular application process, which has had much slower processing times and lower approval rates. Here’s how this change will affect Indian applicants:
Increased processing time: The most immediate effect on Indian students will be longer processing times. Under the SDS program, applications were processed in approximately 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 approval rates: Another key concern is the low approval rate for Indian applicants. According to SDS, the pass rate for Indian students was consistently higher, reaching up to 73% in early 2023. In contrast, those applying through the regular stream had pass rates as low as 10%. With the loss of the SDS route, Indian students will now face tougher scrutiny, which may reduce their chances of receiving a study permit.
Increased requirements for financial evidence: In addition to longer processing times and lower approval rates, students will now have to meet stricter financial requirements. The Canadian government has increased the cost of living requirements for international students, further complicating the financial burden for many applicants. While students in the SDS program were already required to demonstrate the ability to pay their tuition and living expenses, the new regulations are expected to be even stricter. This could be a particular challenge for students from lower income families.
Reduced job opportunities for spouses: One of the most overlooked consequences of the SDS suspension is the impact on the spouses of international students. Under previous rules, spouses of students in the SDS program were eligible for open work permits, allowing them to support their families while living in Canada. However, with the new policy revisions, this benefit has been limited. Reducing work permits for spouses will add to the financial pressure on Indian students and their families, making Canada a less attractive destination for those who want to study while also providing for their loved ones.
Canada’s broader immigration strategy
The changes to the student visa system are not just about reducing the number of international students. Canada’s immigration review also includes new caps on the number of study permits issued in 2025, which will be capped at 437,000, including all educational levels from undergraduate to postgraduate. For reference, in 2023 Canada issued 485,000 study permits, meaning the new cap represents a noticeable reduction.
In addition, Canada is also implementing stricter eligibility requirements for students seeking a Post-Graduate Work Permit (PGWP), which allows international students to gain work experience after completing their studies. These new eligibility criteria include stricter language and field 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 have been commonly used by international students to enter and exit Canada during periods of study. This change will make it more difficult for students to travel back and forth between their home country and Canada.
The diplomatic turn and its impact
The timing of these changes is also significant in the context of growing diplomatic tensions between India and Canada. Recent months have seen a decline in relations between the two countries, 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 Ghosal, Founder and Director of OneStep Global, noted, “Canada’s decision to end the Student Direct Stream (SDS) program, which has been a crucial visa pathway for Indian students, will undoubtedly have an impact on student plans and preferences. the exact reasons behind this change are not entirely clear, it may be related to wider adjustments to immigration policy or an effort to manage the volume of applications in the context of the current diplomatic process. tensions.”
This change in Canada’s immigration policies also reflects growing concerns in the country about the pressure placed on the housing market by the influx of international students. There are growing concerns that the rapidly growing student population is contributing to rising rents and overstretching public services, leading to frustration among local residents.