Learning that your Canadian school has lost its designated learning institution status can be frightening.
International students may worry that they must stop studying immediately, leave Canada or lose the tuition they have already paid. Others may assume that a valid study permit allows them to remain at the school until graduation.
The actual rules depend on when the school lost its designation, whether the student already started studying and when the current study permit expires.
A school losing DLI status is also different from a school being placed on IRCC’s suspension list.
This 101 Legal Ways guide explains the current IRCC rules and the steps students should consider.
A Realistic Scenario: Sofia’s School Loses DLI Status
Sofia is an international student completing a two-year business program in Canada. She has 10 months of classes remaining, but her study permit will expire in six months.
Sofia receives a notice that her school has lost its DLI status.
She initially believes she can extend her study permit and finish the program at the same school. However, IRCC does not allow a student to extend a study permit to continue at a de-designated institution unless the school is later re-designated.
Sofia may continue studying at the school while her current study permit remains valid. Because the permit expires before her program ends, she also starts researching eligible new DLIs and the documents required for a new study permit.
Sofia is fictional, but her situation shows why students must compare the program completion date with the study permit expiry date.
What Is a Designated Learning Institution?
A designated learning institution, commonly called a DLI, is a school approved by a Canadian province or territory to host international students.
Post-secondary students normally need a letter of acceptance from a DLI when applying for a study permit.
A DLI number usually begins with the letter “O” and appears on:
- The school’s listing
- The letter of acceptance
- Study permit application documents
Designation is controlled by the province or territory. A school can lose its status or be placed on a suspension list.
A school being allowed to operate under provincial education law does not necessarily mean it remains authorized to enrol international students through the federal study permit system.
What Does De-designation Mean?
A school is de-designated when the province or territory removes its status as an institution approved to host international students.
De-designation does not always mean the school has closed.
The institution may continue operating, but its ability to support international student study permits becomes restricted.
According to IRCC, a student already studying at a school when it loses DLI status may:
- Continue studying there until the current study permit expires
- Apply for a new study permit connected to a different DLI
The student cannot extend the study permit to continue at the de-designated institution unless the institution is re-designated by its province or territory.
Official source: IRCC guidance when a school loses DLI status
Can You Keep Studying at the School?
You may generally keep studying at the de-designated school until your current study permit expires.
This does not mean you can remain there indefinitely.
Compare these two dates:
- The date your current study permit expires
- The date you expect to complete your program
If You Can Finish Before the Permit Expires
You may be able to complete the current program before the study permit expires, provided the school remains open and able to deliver the program.
You must continue meeting all study permit conditions.
If the Program Ends After the Permit Expires
You cannot normally extend your study permit to remain at the de-designated school.
Your practical options may include:
- Transferring to another DLI
- Waiting to see whether the institution is re-designated
- Changing your immigration status if eligible
- Leaving Canada when required
Waiting for possible re-designation can be risky when a permit expiry date is approaching.
De-designation and Suspension Are Different
IRCC treats a de-designated school differently from a school placed on the DLI suspension list.
| School status | Can the student continue? | Can the permit be extended at that school? |
|---|---|---|
| DLI loses designation | Until the current study permit expires | Generally no, unless the school is re-designated |
| DLI is placed on suspension list | Until the current study permit expires | May be extended only to complete the program already started |
| Suspended DLI offering a new program | Student cannot rely on suspension rules to begin a new program | No extension to begin a new program there |
A student at a suspended DLI may attend only to complete a program already started.
Students should confirm whether the school was actually de-designated, suspended or simply removed from a particular program list.
Official source: IRCC rules for studying at a de-designated or suspended DLI
What If You Deferred Your Enrolment?
A student may receive admission and then delay the starting date to a later semester. This is commonly called a deferral.
If the school loses its DLI status before the deferred student begins studying, the student cannot start the program at that school.
A study permit approval based on the old letter of acceptance does not allow the student to ignore the school’s loss of designation.
The student must find a new DLI and follow the applicable study permit process.
If You Are Already in Canada With a Valid Study Permit
A deferred student who is already in Canada must:
- Apply to a new designated learning institution
- Receive a new letter of acceptance
- Apply for a new study permit using documents connected to the new DLI
The student should not begin at the de-designated school.
The new school must appear on IRCC’s current DLI list.
If Your Study Permit Was Approved but Not Issued
Sometimes IRCC approves a study permit application before the student travels, but the school loses DLI status before the physical permit is issued at the Canadian port of entry.
IRCC says it will request a new letter of acceptance from another DLI.
The student should respond within the deadline stated in the IRCC request. Failure to provide the new letter may affect the application.
How to Transfer to a New DLI
Post-secondary students changing schools generally need to apply for a new study permit by applying to extend the current permit.
The student should first:
- Research a new school on the official DLI list.
- Confirm that the specific program accepts international students.
- Apply and receive a new letter of acceptance.
- Obtain a new PAL or TAL if required.
- Prepare an explanation of why the school change is necessary.
- Apply to extend the study permit for the new DLI.
- Keep proof that the previous school lost designation, closed or discontinued the program.
As of January 22, 2025, students changing post-secondary DLIs generally need a new provincial or territorial attestation letter unless an exemption applies.
Quebec students may also require a new Quebec Acceptance Certificate or attestation of issuance, depending on the situation.
Official source: IRCC instructions for changing schools or programs
Can You Start at the New DLI While Waiting?
Most post-secondary students need approval for the new study permit before starting at another DLI.
However, IRCC provides an exception for students affected by serious problems at their previous institution.
A student may begin studying at the new DLI while the study permit extension is being processed only when all these conditions are met:
- The student has not left Canada since receiving the new letter of acceptance
- The student continues meeting the conditions of the previous study permit
- Before the student completed the program, the former DLI closed, discontinued the program, was placed on the suspension list or lost its designation
The student should include documents proving that the exception applies.
If these requirements are not met, the student should wait until the new study permit is approved before beginning at the new school.
New 60-Day Processing for Students Changing DLIs
IRCC currently identifies a faster processing option for eligible students changing post-secondary DLIs.
The study permit extension application may be processed in 60 days when the student follows the special application instructions.
When completing the online application, the student must indicate that they are changing DLIs by answering “Yes” to the applicable school-change question.
Students should still plan carefully. A processing target is not a guarantee that every application will be decided within exactly 60 days.
What Documents Should You Collect?
A student affected by DLI de-designation should preserve:
- The original letter of acceptance
- The current study permit
- The passport
- Transcripts
- Tuition payment records
- Attendance records
- Course outlines
- Program completion records
- Notices from the school
- Notices about the loss of DLI status
- Communications concerning transfers or refunds
- The new letter of acceptance
- The new PAL or TAL if required
- Proof of the new application
- Documents showing why the student qualifies to begin at the new DLI while waiting
Records may be important for the school transfer, immigration application and any future PGWP assessment.
Does the Student Have to Leave Canada Immediately?
Losing DLI status does not automatically cancel every affected student’s valid study permit.
An actively enrolled student may generally continue studying until the current permit expires.
However, the student must still:
- Maintain valid temporary resident status
- Follow study permit conditions
- Stop studying when no longer authorized
- Apply for a new permit before changing DLIs
- Leave Canada or change status when required
A student should not confuse permission to finish under the current permit with permission to extend at the same institution.
What Happens to Work Authorization?
Student work authorization generally depends on meeting the conditions printed on the study permit and the rules for on-campus or off-campus work.
Students should not assume that employment rights continue unchanged when:
- They stop studying
- The school closes
- They take an unauthorized leave
- The current study permit expires
- They transfer without following IRCC’s process
A student who is no longer enrolled and actively studying may lose eligibility to work under student authorization.
Because school-status changes can affect enrolment, students should verify their work authorization before continuing employment.
Could DLI Problems Affect PGWP Eligibility?
A school’s DLI status and Post-Graduation Work Permit eligibility are related but separate questions.
Graduating from a DLI does not automatically make a student eligible for a PGWP. The school and program must satisfy the applicable PGWP requirements.
Students should check:
- Whether the new institution is a DLI
- Whether the particular program is PGWP eligible
- Whether previous study time can be counted
- Whether the field-of-study requirement applies
- Whether the student will maintain full-time status
- Whether a gap or transfer affects eligibility
- Whether the language requirement applies
IRCC does not state on its de-designation page that every student who remains until the permit expires will automatically receive a PGWP.
Do not make a transfer decision based only on the new school being a DLI. Check PGWP eligibility separately.
Official source: IRCC overview of PGWP eligibility
What About Tuition Refunds?
IRCC’s DLI rules determine study permit consequences. They do not automatically decide whether a student receives a tuition refund.
Refund rights may depend on:
- The enrolment contract
- The school’s refund policy
- Provincial or territorial education rules
- Whether the program continues
- Whether the school closes
- Whether credits can be transferred
Students should request information from the institution in writing and preserve all payment records.
Immigration deadlines should not be ignored while a tuition dispute is being reviewed.
What Happens If You Change Schools Without Following IRCC’s Process?
IRCC warns that the former school may report the student as no longer registered or enrolled.
Changing post-secondary DLIs without following the required process can mean:
- The student is violating study permit conditions
- The study permit may become invalid
- The permit may be cancelled
- The student may be asked to leave Canada or change status
- Future study or work permit applications may be affected
Receiving an admission offer from another school is not enough. The student must complete the required immigration process.
Common Mistakes to Avoid
Students should avoid:
- Assuming de-designation means immediate removal from Canada
- Assuming a current permit can always be extended
- Confusing DLI suspension with loss of designation
- Starting at a new DLI without checking the permit rules
- Selecting a new school without checking the official DLI list
- Assuming every DLI offers PGWP-eligible programs
- Waiting until the study permit is close to expiry
- Failing to obtain a new PAL or TAL when required
- Discarding school notices or payment records
- Continuing to work without confirming authorization
A 101 Legal Ways Educational Example
After reading 101 Legal Ways guides, Daniel realized that “suspended” and “de-designated” did not have the same meaning.
Instead of assuming that he could extend his permit at the same school, he checked the official DLI list, compared his permit expiry date with the program end date and requested written confirmation of the school’s status.
He then researched a new DLI, obtained an updated letter of acceptance and collected evidence explaining why the transfer was necessary.
Daniel is a fictional public-education example. He is not a client and his story does not promise approval, a tuition refund or a particular immigration result.
101 Legal Ways helps students understand official rules, identify important deadlines and take better-informed next steps during unexpected situations.
Four Actionable Takeaways
- Confirm the school’s exact status. Determine whether it was de-designated, suspended, closed or removed from a specific program list.
- Compare your permit and program dates. You may continue only until the current study permit expires and cannot normally extend at a de-designated DLI.
- Prepare a compliant transfer. Obtain a new letter of acceptance, confirm the new DLI and PGWP status and secure a PAL or TAL if required.
- Keep complete records. Preserve school notices, transcripts, tuition receipts, enrolment documents and proof of the new study permit application.
Final Thoughts
A school losing DLI status does not always mean that an international student must stop studying immediately.
Students already enrolled may generally continue until the current study permit expires. The larger problem arises when the permit expires before the program is complete because IRCC will not normally extend it for continued study at a de-designated institution.
The safest approach is to confirm the school’s exact status, review immigration deadlines and investigate eligible transfer options early.
Legal Disclaimer
This article provides general public legal and immigration information only. It is not legal advice and does not create a lawyer-client, consultant-client or other professional relationship. DLI status, study permit requirements and PGWP rules may change without notice. Tuition and academic issues may also be governed by provincial or territorial rules and the student’s enrolment contract. Always review current IRCC and Canada.ca instructions. Consult a Canadian lawyer or properly authorized immigration representative for advice about your specific circumstances.
