Canadian universities are grappling with budget cuts due to a cap on international student permits, leading to layoffs and service reductions.
Last year, the federal government announced a 35% drop in study permits, bringing the total down to about 360,000 for 2024. This was one of the first major cuts to Canada’s immigration targets.
International students usually pay way more in tuition than local students. Schools are scrambling to fill the financial gap and figure out which programs they can afford to keep.
Steve Orsini, president of the Council of Ontario Universities, mentioned that schools in his group expect to lose a whopping $330 million this fiscal year and around $600 million next year.
He said this is hitting hard at a time when Ontario universities are already facing financial struggles. They’re cutting programs, laying off staff, and freezing hiring. Some student residence projects have even been canceled or delayed.
Jessie Niikoi, chair of the British Columbia Federation of Students, pointed out that students are seeing cuts everywhere, like reduced library hours and less access to academic advisers.
She emphasized the need for more funding, especially now, as the situation keeps getting worse with each budget cut.
Tuition rates vary, but international students consistently pay much more. For instance, 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, while international students pay around $47,000. Orsini noted that about 19% of Ontario university students come from outside Canada.
The loss of tuition from international students is hitting hard, especially with Ontario’s tuition freeze for domestic students and grants that aren’t keeping up with rising costs.
Orsini described the situation as a perfect storm, with all funding sources being cut or frozen.
Immigration Minister Marc Miller explained that the international student system was meant to attract talent for key roles, but the program got “overheated,” leading to the cuts.
He added that funding issues for universities aren’t the federal government’s problem. He pointed out that he never told universities to charge international students so much more than domestic ones.
Both British Columbia and Ontario have increased funding for post-secondary institutions since the cap was introduced. B.C. announced a 24% increase in its budget for these institutions, totaling $3.12 billion.
Ontario also launched a three-year sustainability fund worth $903 million and committed to keeping the tuition freeze. However, the number of international study permits in these provinces was cut in half due to the cap.
A report highlighted that tuition from Indian students alone contributed more to Ontario’s post-secondary funding than the provincial government.
Orsini warned that with Ontario’s stability funding set to expire in just over two years, and the tuition freeze still in place, more cuts are likely.
Miller acknowledged that the cap is a “blunt instrument” aimed at addressing issues in the education system, particularly with for-profit colleges.
While he doesn’t control funding for post-secondary institutions, he stressed that many schools need to rethink their business models.
He noted that the current model isn’t healthy and needs urgent attention, especially since these institutions pride themselves on being among the best globally.
Niikoi expressed a desire for both provincial and federal governments to increase funding for post-secondary education to better prepare the next generation of workers.
She mentioned that enrollment has been declining since the announcement, making Canada less appealing to international students.
Niikoi stressed that reliable funding for public institutions is crucial, so they don’t have to rely solely on international student numbers for financial support.
This report by The Canadian Press was first published on January 18, 2025.
