Canadian colleges and universities are grappling with a financial crisis triggered by the federal government’s cap on international student permits. Layoffs, hiring freezes, and service reductions have become common as institutions struggle to adjust to a 35% reduction in study permits, which limits the number of international students to approximately 360,000 for 2024. This reduction was part of a broader move to lower Canada’s immigration targets.
The loss of international students, who pay significantly higher tuition than domestic students, has created a substantial funding gap. Domestic tuition fees at institutions like Toronto Metropolitan University range from $7,200 to $11,000, while international students pay upwards of $35,000 to $40,000. At the University of British Columbia, domestic undergraduates pay around $5,900 for first-year courses compared to $47,000 for their international counterparts.
Ontario universities are among the hardest hit, with a projected combined loss of $330 million in this fiscal year and $600 million in the next, according to Steve Orsini, president of the Council of Ontario Universities. Cuts have included deferred capital projects, reduced student services, and even the cancellation or delay of nine residence construction projects. British Columbia is experiencing similar challenges, with students reporting reduced library hours and limited access to academic advisors.
The federal government has defended the cap as a necessary measure to address an “overheated” system, citing concerns about for-profit career colleges exploiting international students. Immigration Minister Marc Miller argued that post-secondary institutions need to rethink their reliance on international tuition revenue, calling it an unsustainable business model.
Provincial governments have stepped in with temporary relief. Ontario introduced a $903 million sustainability fund over three years while maintaining a domestic tuition freeze. British Columbia increased post-secondary funding by 24%, raising its 2024/25 budget to $3.12 billion. However, these measures only partially offset the financial strain, with Ontario’s funding set to expire in two years, raising fears of further cuts.
As institutions face declining enrolment and funding challenges, education advocates like Jessie Niikoi, chair of the British Columbia Federation of Students, are urging provincial and federal governments to collaborate on long-term solutions. “We need reliable funding for public institutions to reduce dependence on international tuition,” Niikoi said. Without such action, experts warn that Canada risks diminishing its global appeal as an education destination and undermining the next generation of skilled workers.