Ottawa’s international student cap will create financial risks, university and college leaders say

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A federal cap on study permits for international students will create financial risks for postsecondary schools in some parts of the country, which could lead to layoffs and program closings, and affect Canada’s reputation, according to university and college leaders.

Immigration Minister Marc Miller announced Monday that he’s imposing a two-year cap on international study permits that will cut the number of new permits issued by about 35 per cent this year. The number of international students in Canada grew rapidly in recent years to more than 800,00 in 2023, which Mr. Miller said put pressure on housing and health care.

Previously, study permits were issued to qualified applicants who had a letter of acceptance from a designated learning institution, with no limit on the number that could be issued every year. Under the new system, a fixed number of permits will be issued to each province based on its share of population. Ontario, which hosts by far the largest number of international students, could see its intake cut by as much as 50 per cent, Mr. Miller said.

Colleges and Institutes Canada, which represents publicly funded colleges and polytechnics, warned that the move will have far-reaching consequences, from layoffs to program closings and a need to increase tuition fees, all of which could hurt domestic students as well as those from abroad. International student tuition fees, which are several times higher than those paid by domestic students, have become a crucial income source for many schools that has made up for declining levels of provincial government funding.

The new system will give provincial governments the right to decide how study permits are allocated, creating a situation where universities, public colleges and private career colleges will scramble for their share of permits.

Philip Landon, interim president of Universities Canada, said his members are eagerly awaiting more details on how that will work.

“How the provinces do that allocation is a big concern for us because the provinces may choose to support non-university sectors more than the university sector, for whatever reason,” he said.

Total income per full-time equivalent

student, by source and type of

institution, 2021–22

Government

Student fees

Other

Alberta

British Columbia

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Manitoba

Saskatchewan

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

New Brunswick

Nova Scotia

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Ontario

Quebec

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Newfoundland

and Labrador

Prince Edward

Island

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Universities

Colleges

Colleges

Universities

THE GLOBE AND MAIL, SOURCE:

HIGHER EDUCATION STRATEGY ASSOCIATES

Total income per full-time equivalent

student, by source and type of

institution, 2021–22

Government

Student fees

Other

Alberta

British Columbia

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Manitoba

Saskatchewan

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

New Brunswick

Nova Scotia

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Ontario

Quebec

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Newfoundland

and Labrador

Prince Edward

Island

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

THE GLOBE AND MAIL, SOURCE:

HIGHER EDUCATION STRATEGY ASSOCIATES

Total income per full-time equivalent student, by source and type of institution, 2021–22

Government

Student fees

Other

Alberta

British Columbia

Manitoba

Saskatchewan

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Colleges

Universities

Colleges

Universities

Nova Scotia

Ontario

New Brunswick

Quebec

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

Colleges

Universities

Colleges

Universities

Prince Edward Island

Newfoundland and Labrador

$45K

40K

35K

30K

25K

20K

15K

10K

5K

0

Colleges

Universities

Colleges

Universities

THE GLOBE AND MAIL, SOURCE: HIGHER EDUCATION STRATEGY ASSOCIATES

Some institutions and regions might not be much affected by the government’s announcement, Mr. Landon said. Others, particularly Ontario, will be hard hit.

Steve Orsini, president of the Council of Ontario Universities, said the new measures couldn’t have come at a worse time. At least 10 Ontario universities are expected to run deficits this year, which they attribute primarily to a four-year provincially imposed tuition freeze and low levels of provincial operating grants.

“We find it very troubling that the federal government would use a blunt instrument that could have dramatic impacts for Ontario universities already in dire financial circumstances,” he said.

“Any reduction in international students would exacerbate that financial difficulty, which will mean less programming, less services, both for international and domestic students.”

Mr. Orsini called on the federal government to take a more surgical approach to pursuing what he called the “bad actors” that have driven up international student numbers.

Joseph Wong, vice-president international at the University of Toronto, said the school looks forward to working with government to ensure the allocation of permits recognizes the efforts of universities with strong and transparent track records and “addresses the problem where the challenges lie.”

Universities Canada applauded the move to make students who attend a private career college in a curriculum licensing arrangement with a public college ineligible for a work permit after graduation, saying it’s the type of targeted measure that will have an impact.

A number of Ontario colleges entered such arrangements in recent years. At least seven of Ontario’s publicly funded colleges had more international students than domestic in 2021-2022. Some have also run large budget surpluses driven mainly by international tuition income.

Conestoga College, based in Kitchener Ont., and with campuses in other surrounding communities, said it is concerned about what the announcement will mean, both for students and the communities that rely on the college to produce graduates to fill labour market needs.

“We worry the timelines for such substantive changes are too short to engage in the kind of meaningful consultation we need,” Brenda Bereczki, Conestoga’s communications director, said in a statement.

Michael Sangster, CEO of the National Association of Career Colleges, said some of his constituent colleges will be affected by the policy shift, but according to federal government data, only roughly 10 per cent of study permit applications are for registered career colleges.

”We don’t believe we’re the problem but we want to be part of the solution,” he said.

Larissa Bezo, president of the Canadian Bureau for International Education, said the announced policy changes will come with significant short-term pain for some institutions and with the potential for some far-reaching long-term consequences.

“We’re very concerned that these measures will send a signal to international students around the world that Canada is closing its doors,” she said.

With a report from Laura Stone