Colleges face millions in losses amid Canada’s foreign student crackdown to rein in migration
- The decision by Ontario’s administration will hit hardest at institutions that have been relying entirely on foreign enrolments to drive growth
- The move was in response to a two-year cap on the number of international students imposed by the federal government to tackle housing shortages
The Canadian province that attracts the most international students will limit the number of college spaces available to them as part of a broader crackdown to curb the influx of temporary immigrants. For many colleges, a financial reckoning is imminent.
The decision by the government of Ontario will hit hardest at colleges that have been relying entirely on foreign enrolments to drive recent growth. Colleges Ontario, an industry group, said revenue losses will be in the hundreds of millions of dollars this fall.
That will mean “immediate programme suspensions” and a pause on capital spending, Marketa Evans, the group’s CEO, said in a statement. “No organisation can absorb such losses without significant cuts to operations.”
Individual colleges and universities in Ontario will be restricted to a maximum of 55 international-student permits for every 100 Canadian students enrolling in first-year programmes, with some exceptions. The number of permits also cannot exceed the institution’s levels last year.
Ontario’s government said Conestoga College, which had the highest number of study permits last year, and colleges that are public-private partnerships will see the largest decline.
The provincial announcement is in response to a two-year cap on the number of foreign students imposed by the federal government, which has been rolling back its immigration plans amid angst over housing shortages.