Countries with high international student demand are generating significant revenue from student visa applications, even as refusal rates rise.
This financial gain continues to grow as the number of rejected applications increases, adding to the challenges faced by prospective students.
Icef Monitor informs that in Canada, 52% of study permit applications were refused in 2024, an increase from 38% in 2023.
Reports also cite that the country’s immigration system generated an estimated CDN$707.9 million in application fees in 2024, including CDN$354 million from refused applications.
Executive director of Migrant Workers for Change, Syed Hussan, criticized this practice, calling it “profiting from applicants’ hopes and dreams.”
Despite the high refusal rate, Immigration, Refugees and Citizenship Canada (IRCC) maintains that many refusals are due to fraud detection, with officials trained to ensure the integrity of the immigration system.
Australia has also seen a sharp decline in student visa approvals. From October 2023 to August 2024, the number of study visas issued dropped by 38%, with the vocational and English-language training sectors particularly affected.
Though Australia does not have an official cap on student visas, reports cite that there are increasing concerns that officials are using subjective criteria, leading to what some describe as “caps by stealth” that are further impacting visa approvals and raising financial concerns for students.
Lack of transparency in visa decisions
According to reports, another key issue contributing to the growing frustration among applicants is the lack of transparency in visa decisions. A founding member of the Canadian Immigration Lawyers Association, Ekaterina Neouimina, has expressed concerns about vague terms like “misrepresentation” being used to justify refusals.
These terms are often applied to minor inconsistencies in applicants’ paperwork, creating uncertainty for students and making it difficult to understand the reasons behind their rejections. The non-refundable nature of application fees adds to the financial burden, as students lose money on rejected applications.
Impact on study abroad agencies
The increase in student visa rejections is also taking a toll on study abroad agencies. According to Icef, GrowPro, a study abroad agency that operated in 17 countries, ceased operations in February 2025 after facing financial difficulties.
The company, as stated, had accumulated a 50% refusal rate in 2023, which meant it was unable to reimburse students for visa rejections, leading to its collapse.
Global trend of increased visa refusals
Visa refusals are not limited to Canada and Australia. In the UK and the US, international students are also experiencing rising rejection rates. Reports cite that in the US, F-1 visa refusals reached a record high of 36% in 2023.
The previous UK government under Rishi Sunak, as stated in the report, considered limiting the Graduate Route, which allows international students to work for 2–3 years after finishing their studies. Although the Route was not altered, the uncertainty during that period made it harder for new students to choose the UK over other countries.
This trend is affecting countries globally, as students consider alternatives to studying in countries with high rejection rates.
Visa processing delays and economic consequences
In addition to high refusal rates, visa processing delays are further complicating the situation for international students. According to a report from Oxford Economics, if visa wait times do not improve, the US risks losing up to US$19 billion in tourism revenue over the next two years as students seek alternatives due to long delays and uncertainty.
