Audit Finds Major Gaps in Canada’s Student Program

Canada’s efforts to control international student numbers succeeded in lowering new study permit approvals, but serious weaknesses remain in how the federal government monitors students and responds to fraud, according to the Auditor General.

The audit was tabled in Parliament on March 23, 2026, and examined reforms to the International Student Program. Auditor General Karen Hogan told the House of Commons public accounts committee that Immigration, Refugees and Citizenship Canada, known as IRCC, met its goal of reducing new permits but “fell short in other key areas.”

Thousands of Cases Received Little Attention

Canadian educational institutions identified more than 153,000 potential cases of study permit non-compliance during 2023 and 2024.

However, IRCC investigated only slightly more than 4,000 of those cases because it had funding to review about 2,000 files each year. This left roughly 149,000 reports without an investigation.

A report of possible non-compliance does not automatically mean a student broke immigration rules. Students must have an opportunity to show that they remained enrolled and actively pursued their studies.

Still, Hogan raised concerns about how IRCC handled the limited number of files it did review. About 40 per cent of those investigations were closed after students stopped communicating with the department, rather than after officials reached a clear decision.

Fraud Cases Saw No Follow-Up

The audit also found that IRCC did not pursue approximately 800 fraud cases discovered after study permits had already been approved.

In most of those cases, the individuals later applied for other immigration permits while staying in Canada. More than half of their later applications received approval, the Auditor General told the committee.

The findings suggest that detecting suspicious information alone does not protect the program. Officials must also investigate the evidence and decide whether enforcement or another response is required.

Departure Records Remained Unclear

Auditors also examined nearly 550,000 people whose study permits expired in 2024. They identified about 39,500 people who appeared to have no other valid immigration status.

The audit team then asked the Canada Border Services Agency to check departure information. Records confirmed that approximately 40 per cent had left Canada. A missing departure record does not prove that every other person remained in the country without authorization, but it leaves officials without a complete picture.

Hogan said IRCC and the border agency must decide how to assess the remaining cases and take action where necessary.

Permit Reductions Exceeded Forecasts

The audit acknowledged that the government sharply lowered approvals under its recent reforms. IRCC issued just under 150,000 new study permits in 2024, compared with an earlier forecast of approximately 350,000.

The reductions affected provinces differently. Newfoundland and Labrador and Saskatchewan had expected approvals to rise by 10 per cent compared with 2023. Instead, both experienced declines of at least 59 per cent.

The audit does not change the conditions international students must follow. Students must remain enrolled, actively pursue their studies, keep their documents valid and report required changes.

The Auditor General concluded that IRCC needs to use its existing information more effectively, investigate high-risk cases and improve coordination with border officials to protect confidence in the program.