Why Isn’t Canada’s Student Direct Stream (SDS) Popular Outside of India?

Last month, we delved into how Indian students are leveraging the Student Direct Stream (SDS) approval rate advantage. The program is highly popular in India, with nearly four in five Indian students applying for their Canadian study permit through the SDS.1

But the SDS hasn’t seen similar traction in other eligible countries. Established student populations like China and the Philippines, as well as those in emerging markets like Latin America (LATAM) and Africa, are mostly applying for their study permit through the regular stream.

Read on to discover the SDS trends outside of India. Find out where the stream is most successful and where it’s struggling to gain popularity.

Key Insights at a Glance

  • In 2022, Pakistani students who applied for their study permit through the SDS had an approval rate more than double that of regular applicants.2
  • SDS applicants from Brazil, Colombia, Morocco, Peru, and Vietnam saw an approval rate advantage of at least 16 percentage points over the regular stream.
  • SDS accounted for 44% of Pakistani and 22% of Vietnamese applicants last year, but less than 7% for all other non-Indian eligible countries.3

Is it Worth Applying for a Canadian Student Visa Through the Student Direct Stream?

The SDS is an expedited study permit processing program available to students from 14 different countries. Its high eligibility criteria are designed to help show institutions that the student is more likely to complete their studies.

The chart below compares approval rates for SDS and regular stream applicants for emerging markets in 2022:3

Students who apply for a Canadian study permit through the SDS see an approval rate advantage over regular stream applicants in every emerging market.

Pakistani students see the largest positive difference. The student visa approval rate for SDS applicants from Pakistan was over double that of regular stream applicants last year. In Brazil, Colombia, Morocco, Peru, and Vietnam, SDS applicants saw an approval rate advantage of at least 16 percentage points over the regular stream cohort.

Because SDS applicants usually see a significant approval rate advantage, Regulated Canadian Immigration Consultant (RCIC) Antonio Aragón strongly recommends students do what they can to meet the stream’s requirements.

And yet, despite this advantage, the SDS hasn’t really become popular in many of these countries.

The Low Percentage of SDS Applications From Emerging Markets in 2022

The graph below shows the percentage of Canadian student visa applicants who used the SDS in 2022, by emerging country:

Pakistani students apply through the SDS more than students from any other emerging market, with 44% of applicants opting for this route in 2022. Over half of those students were approved, whereas only a quarter of regular stream applicants were successful.

The SDS accounted for less than 5% of Canadian student visa applications for most eligible countries in 2022.4

Canada expanded the SDS to students from select Latin American countries in July 2021, meaning that 2022 was the first full year of eligibility for those countries. While limited awareness of the stream may be playing a role in the low percentage of applications, our recruitment partners (RPs) in the region are telling us that the SDS’s requirements are the biggest factor.

LATAM students pursue English-language pathways heavily in their study abroad journey across the world—for instance, these students are helping drive the recovery of Australia’s international ed sector, and are doing so primarily through English-language intensive courses. Students seeking this study journey are unlikely to meet the SDS’s high language requirement.5

Qualification, rather than awareness, is likely a factor for other countries as well. Recently released study permit refusal data shows that insufficient financial support was a cited reason for 53% and 42% of refusals for Vietnamese and Moroccan applicants, respectively, in 2021 and 2022. And the SDS requires proof of a Guaranteed Investment Certificate (GIC) of C$10,000 or more purchased from a CDIC-insured financial institution. Our regional RPs are telling us that this financial requisite makes the SDS unattractive to price-sensitive student markets already struggling to show sufficient proof of funds.

Why Filipino and Chinese Students Aren’t Leveraging the Student Direct Stream

As with the emerging markets above, Canada’s SDS route has yet to gain traction with Filipino and Chinese students—the country’s second and third largest student populations in 2022. The graph below shows the percentage of students who applied for their Canadian study permit through the SDS in 2022:

Fewer than 7% of students from two of Canada’s three largest student populations opted to apply through the SDS last year. Where their story differs from the emerging markets is in their approval rates.

Shockingly, Filipino students have had higher approval rates going through the regular stream over the SDS since the pandemic. Student age may be a factor. The Filipino student population is more mature than most, with an average age of 31 for those using the ApplyBoard Platform. Our RPs are telling us that most students abide by the minimum GIC requirement of the SDS. But RCIC Antonio Aragón recommends that students should provide proof of funding that’s more reflective of their age bracket.

And for Chinese students, the approval rate advantage for SDS applicants has flattened since the pandemic—2021 featured an advantage of three percentage points while 2022 saw a two percentage point disadvantage. Because of this, our RPs are telling us that Chinese students don’t believe there’s much value in trying to meet the SDS’s higher eligibility requirements—particularly as many Chinese students pursue English-language programs alongside their university or college studies.

How Canada Could Boost The Popularity of the Student Direct Stream

Despite expedited processing times and generally better approval rates, the SDS isn’t attracting students outside of India. Our RPs in these regions are telling us that there are two prevailing factors: the program’s GIC and language requirements.

Many students from LATAM and the Philippines bring their family with them. For these families, we’re hearing that locking up their financial flexibility within a GIC is an unappealing prospect.

For students seeking English-language studies alongside their university or college program, RCIC Antonio Aragón still recommends trying to meet the SDS’s language requirement to take advantage of the route’s approval rate advantage. ApplyBoard’s recruitment counsellors can assist students with improving their English proficiency by taking advantage of discounted exam vouchers.

With Canada evaluating the renewal of its international education strategy, the SDS could be a valuable tool for achieving diversification goals. We see two substantive opportunities that could boost the program’s success:

  • Expanding the list of eligible countries to include those with low approval rates through the regular stream, low ESL/FSL volumes, and low incidence of refusal due to financial reasons. This strategy would target student markets—such as Iran or Nepal—that would see a larger benefit from the expedited approval process and that would have a higher likelihood of meeting the program’s requirements.
  • Tailoring requirements to student populations. Rather than the current one-size-fits-all approach, a strategy that aligns program requirements with what the data suggests is attainable in specific student markets could go a long way for those students.6

 

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About the ApplyInsights Team

Led by ApplyBoard Co-Founder and CEO Meti Basiri, the ApplyInsights Team analyzes the latest government, third-party, and ApplyBoard internal data to provide a complete picture of trends in the international education industry. They also work with industry experts and ApplyBoard team members to gather local insights across key source and destination countries, where ApplyBoard has helped more than 600,000 students around the world.

 

FOOTNOTES:

1. The terms student visa and study permit are generally used interchangeably for Canadian international students. Rather than student visas, Canada provides accepted international students with study permits, which allow those students to enroll in classes at Canadian institutions. When a student is accepted for a study permit, they are also usually provided with a visitor visa, which allows that student to enter Canada for their studies.

2. All data courtesy of Immigration, Refugees and Citizenship Canada (IRCC), except where noted otherwise.

3. Minimum 100 SDS applications.

4. In 2022, India (78%), Pakistan (44%), Vietnam (22%), and China (7%) were the only countries in which more than 5% of prospective students applied through the SDS for a Canadian study permit. (Minimum 100 SDS applications.)

5. It’s worth noting that the SDS offers the following: “Applicants who are taking a prerequisite course or bridging program of study at a DLI before starting their main program may be eligible to apply under the SDS, provided they meet all the program eligibility criteria.”

6. Also, to fully help their students, student counsellors should ensure that they’re fully knowledgeable about the SDS’s guidelines for prerequisite courses and bridging programs of study.

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