Canadian government announces discontinuation of the Student Direct Stream (SDS) visa

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Canadian government announces discontinuation of the Student Direct Stream (SDS) visa

Context:

In November 2024, Canada discontinued the Student Direct Stream (SDS) visa, a move with major effects on Indian students, who make up one of the largest international student groups in Canada. 

Current state of SDS Visas:

  • In 2022, India accounted for over 21% of all international students, with 222,450 Indians studying in Canada. 
  • Of these, 189,000 used the SDS visa, which offered a simplified, faster process with a 63% approval rate, compared to 19% for non-SDS applicants.

What is the Student Direct Stream (SDS) Visa?:

The Student Direct Stream (SDS) visa, introduced by the Canadian government in 2018, was designed to expedite the study permit application process for international students. It was particularly beneficial to students from specific countries, including India, as it provided:

  • Faster processing times for eligible applications.
  • Reduced application fees compared to standard student visas.
  • A streamlined application process with fewer supporting documents required.

Indian students, a significant proportion of international students in Canada, extensively utilised this program due to its efficiency and cost-effectiveness.

Why Did the Canadian Government Discontinue the SDS Visa?: 

The decision to discontinue the SDS visa in November 2024 stemmed from concerns and challenges, including:

  • Abuse of the System: Some applicants reportedly misused the program to pursue low-value diploma courses, primarily as a stepping stone toward permanent residency rather than genuine academic pursuits.
  • Strain on Resources: The rapid influx of international students, particularly in cities like Toronto and Vancouver, has aggravated housing shortages and strained public services like healthcare and education.
  • Program Integrity and Equity: The Canadian government cited the need to ensure equal and fair access to all international students and maintain the program’s credibility.

How Does the Discontinuation Impact Indian Students?:

  • Longer Processing Times: The SDS visa offered expedited processing, but its removal could lead to significant delays, disrupting students’ academic plans.
  • Higher Application Costs: The standard student visa typically involves higher fees, increasing the financial burden on students.
  • More Complex Application Process: Unlike the SDS visa, the traditional student visa requires comprehensive documentation, including:
  • Proof of sufficient funds.
  • Higher language proficiency scores.
  • A detailed study plan.
  • Uncertainty About Future Opportunities: The SDS visa served as a pathway for Indian students aiming for post-study work permits and eventual permanent residency. Its removal may impact long-term immigration aspirations.

What Other Visa Options are Available?

  • Regular Student Visa: Indian students can apply for a standard study permit by meeting these requirements:
  • Proof of financial capability to cover tuition and living expenses.
  • Language proficiency (IELTS/TOEFL scores).
  • Acceptance from a Designated Learning Institution (DLI).
  • Post-Graduation Work Permit Program (PGWP): After completing studies, students can apply for the PGWP, which allows them to work in Canada and gain valuable experience.
  • Provincial Nominee Programs (PNPs): Students can explore immigration options through PNPs, which often provide pathways to permanent residency based on regional labour market needs.

What Should Indian Students Do Now?:

  • Plan Ahead: Early application is crucial to accommodate longer processing times.
  • Thorough Documentation: Ensure all requirements are met, including proof of funds and language test scores.
  • Consult Immigration Experts: Seek professional advice to navigate the complexities of the visa application process.
  • Explore Alternative Study Destinations: Some students may consider other countries with favourable immigration policies and streamlined student visa processes.

Geopolitical reasons and impacts of Canada’s Decision:

Canada’s decision to end the Student Direct Stream (SDS) visa for international students, especially impacting Indian students, has several geopolitical reasons and impacts:

  • Strained Canada-India Relations: Existing tensions over security and interference might worsen, potentially reducing Indian student numbers and impacting Canada’s education and tech sectors.
  • Pressure on Public Services: With cities like Toronto and Vancouver facing housing and healthcare strains, reducing SDS visas could ease pressures but risks economic loss from fewer international students.
  • Visa Misuse Concerns: The SDS termination aims to prevent misuse for low-value courses used as residency pathways. This change, however, could shift genuine students to other countries like the U.S. or U.K.
  • Diversifying Student Base: Canada may aim to reduce dependency on Indian students and attract a more diverse group. Failure to do so could impact its economy and skilled workforce.
  • Domestic Pressures: The SDS cut addresses housing and security concerns, potentially boosting domestic support but possibly harming Canada’s welcoming reputation.
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