SDS Discontinued for Canada
What Nepali students need to know about the discontinuation of SDS, the new regular study permit stream, and how to adapt.
On November 8, 2024, Canada officially discontinued the Student Direct Stream (SDS), eliminating the fast-track study permit pathway that thousands of Nepali students had used for years. If you are planning to study in Canada in 2026 or beyond, SDS is no longer an option. Every international student, regardless of country, now applies through the regular study permit stream.
This change caught many students and families off guard. At Study Abroad from Nepal, we have been guiding students through the transition since the announcement. Below, we explain what SDS was, why it was removed, what has changed, and exactly what you need to do now.
What Was the Student Direct Stream (SDS)?
SDS was a fast-track study permit program that processed Nepali applications in approximately 20 days instead of the standard 8-16 weeks, introduced by IRCC in 2018 for students from select countries including Nepal, India, China, Pakistan, and the Philippines.
The core advantage was speed. While regular study permit applications took 8-16 weeks, SDS applications were typically processed in approximately 20 days. In exchange for faster processing, applicants had to meet stricter upfront requirements.
SDS requirements (no longer applicable):
- IELTS Academic score of 6.0 in each band (no exceptions)
- GIC of CAD 10,000 from a participating Canadian bank
- First year's tuition paid in full (or a significant portion) before applying
- Upfront medical exam completed before submission
- Acceptance from a DLI
Why Did Canada Discontinue SDS?
Canada discontinued SDS as part of a broader tightening of international student policies in 2024, driven by housing pressure from over 1 million study permit holders and concerns about immigration system integrity.
- Concerns about immigration system integrity. The Canadian government expressed concern that some applicants were using study permits primarily as a pathway to permanent residency rather than genuine education. The SDS fast-track, with its reduced scrutiny, was seen as a potential vulnerability.
- Housing and infrastructure pressure. A rapid increase in international students — reaching over 1 million study permit holders by mid-2024 — strained housing, healthcare, and municipal services in major Canadian cities.
- Equitable processing. With SDS, students from select countries had a clear advantage in processing speed. Discontinuing the stream leveled the playing field for applicants from all countries.
- Provincial attestation letter (PAL) requirement. As part of the same policy overhaul, Canada introduced the requirement for a provincial attestation letter for most study permit applications, adding another layer of oversight.
The official announcement came from the Honourable Marc Miller, then Minister of Immigration, Refugees and Citizenship, on November 8, 2024. The change took effect immediately for new applications.
What Changed: Before vs. After
The GIC jumped from CAD 10,000 to CAD 20,635, processing went from 20 days to 8-16 weeks, and Nepali applicants now need comprehensive financial documentation instead of simplified proof.
| Factor | SDS (Before Nov 2024) | Regular Stream (Now) |
|---|---|---|
| Processing time | ~20 days | 8-16 weeks |
| IELTS requirement | 6.0 in each band (mandatory) | Set by your institution (flexible) |
| GIC amount | CAD 10,000 | CAD 20,635 |
| Tuition payment | First year paid upfront | Deposit or partial payment (varies by DLI) |
| Financial proof | Simplified (GIC + tuition receipt) | Comprehensive (bank statements, sponsor letters, loan documents, property proof) |
| Medical exam timing | Required before submission | Can be done before or after submission |
| Availability | Select countries only | Same process for all countries |
The three biggest impacts for Nepali students:
- Much longer wait times. You now need to plan 3-5 months ahead instead of 3-4 weeks. This means earlier application deadlines and more pressure to have documents ready well in advance.
- Higher GIC requirement. The jump from CAD 10,000 to CAD 20,635 is significant — that is an additional CAD 10,635 (approximately NPR 10,31,595) that you need available upfront. See our cost guide for a full breakdown.
- More detailed financial documentation. Under SDS, a GIC receipt and tuition payment were often sufficient. Now, visa officers expect comprehensive financial evidence: bank statements showing consistent balances, income proof from sponsors, property documents, and education loan sanction letters if applicable.
What You Need to Do Now
Nepali students must apply at least 6 months before their intended intake, prepare comprehensive financial documents, and write a stronger SOP to adapt to the post-SDS regular stream for Canada.
1. Apply Earlier Than You Would Have Before
With processing times of 8-16 weeks, you cannot afford to submit your application two months before classes start. We recommend beginning your application process at least 6 months before your intended intake.
| Intake | Classes Begin | Start Preparing By |
|---|---|---|
| Fall 2026 | September 2026 | March 2026 |
| Winter 2027 | January 2027 | July 2026 |
| Spring 2027 | May 2027 | November 2026 |
2. Strengthen Your Financial Documentation
This is where most students underestimate the change. Under the regular stream, a visa officer reviews your financial documents in detail. You need to show:
- GIC receipt for CAD 20,635
- Bank statements from the past 6-12 months showing consistent balances (not sudden large deposits)
- Income documentation for your financial sponsor (salary slips, tax returns, business registration)
- Property valuations or fixed deposit certificates, if applicable
- Education loan sanction letter from a recognized bank, if using a loan
Weak or rushed financial documentation is the leading cause of study permit refusals. Take this seriously.
3. Write a Strong Statement of Purpose
With longer processing and more manual review, your Statement of Purpose (SOP) carries more weight than it did under SDS. Your SOP should clearly explain:
- Why you chose Canada over other destinations
- Why you selected your specific institution and program
- How the program connects to your career goals
- Your plans after graduation (whether you intend to return to Nepal or pursue a PGWP)
- Your ties to Nepal (family, property, career prospects)
4. Prepare English Scores Early
While the regular stream does not mandate a specific IELTS score from IRCC's side, your DLI will have its own requirement. Most Canadian colleges and universities require an IELTS Academic overall of 6.0-6.5. Higher scores strengthen your application profile.
5. Follow the Regular Study Permit Process
The application steps themselves are clearly documented. Our Canada Study Permit Process guide walks you through every stage — from getting your acceptance letter to providing biometrics at VFS Kathmandu.
Moving Forward
Thousands of Nepali students still receive Canadian study permits through the regular stream every year; the SDS discontinuation changes the timeline and documentation burden but not the fundamental opportunity.
The key difference is preparation. Start earlier, gather stronger financial documents, write a convincing SOP, and give yourself a buffer for the longer processing window.