Universities face ‘across the board’ cuts in wake of international student cap

Ottawa: So, Canadian colleges and universities are really feeling the pinch right now. The government has slashed international student permits, and it’s causing a financial mess. People in the education sector are saying layoffs, hiring freezes, and service cuts are becoming the norm.

Last year, the feds announced a big cut—35% fewer study permits for international students. That means only about 360,000 permits for 2024. It’s a huge shift in Canada’s immigration policy.

International students usually pay way more in tuition than local students. Now, schools are scrambling to figure out how to fill that financial gap and which programs they can afford to keep.

Steve Orsini, who heads the Council of Ontario Universities, mentioned that schools in Ontario are looking at a combined loss of $330 million this year and $600 million next year. That’s a lot of money!

He said it’s really hitting hard at a time when universities are already struggling financially. They’re making cuts across the board—programs, services, and even student housing projects are getting canceled or delayed.

Jessie Niikoi from the British Columbia Federation of Students pointed out that students are feeling the impact too. Library hours are getting cut, and access to academic advisers is shrinking. It’s tough out there.

Niikoi emphasized the need for more funding, especially now. She believes schools need to step up and advocate for better financial support because the situation is getting worse with each budget cut.

Tuition rates vary, but international students are always paying a lot more. For example, at Toronto Metropolitan University, domestic undergrads pay between $7,200 and $11,000, while international students fork out around $35,000 to $40,000.

At the University of British Columbia, domestic students pay about $5,900, but international students are looking at around $47,000. That’s a huge difference!

Orsini noted that about 19% of Ontario university students come from outside Canada. The loss of tuition from these students is hitting hard, especially with the province’s tuition freeze for locals and grants that aren’t keeping up with rising costs.

It’s like a perfect storm for universities. All their funding sources are getting cut or frozen, and it’s making things really tough.

Immigration Minister Marc Miller said the international student program was meant to attract talent, but he had to make cuts because it was getting out of hand. He also mentioned that funding issues for universities aren’t really the federal government’s problem.

Both British Columbia and Ontario have tried to help by increasing funding for post-secondary institutions. B.C. is putting in 24% more for the 2024/25 budget, totaling $3.12 billion. Ontario has a three-year sustainability fund worth $903 million.

However, the number of international study permits in those provinces has been cut in half due to the cap. A report even said that tuition from Indian students alone was contributing more to Ontario’s post-secondary funding than the provincial government.

Orsini warned that with the stability funding running out in a couple of years and the tuition freeze still in place, more cuts are likely on the way.

Miller admitted that the cap is a blunt tool to deal with issues in the education system, especially targeting for-profit colleges. He stressed that many institutions need to rethink their business models.

Niikoi is calling for both provincial and federal governments to step up funding for post-secondary education. She believes that without reliable funding, schools will keep relying on international student tuition, which isn’t sustainable.

She pointed out that enrollment has been dropping since the cap was announced, and Canada is losing its appeal as a study destination. It’s clear that the government needs to act fast to secure funding for public institutions.

This report was first published by The Canadian Press on January 18, 2025.

David Baxter, The Canadian Press