Canada’s decision to reduce the number of international student study permits is sending shockwaves through its post-secondary education sector.
With applications to colleges and universities plummeting by 54 percent and the 2025-2026 visa targets set at 437,000 – a sharp drop from 485,000 in 2024 – educators, students, and industry experts warn that the cuts could have severe and lasting consequences.
On This Page You Will Find:
- Overview of the Issue: A summary of Canada’s international student permit cuts and their implications.
- Impact on Institutions: Insights into how these changes affect colleges, universities, and communities.
- Consequences for Students and Faculty: Details on budget shortfalls, layoffs, and service reductions.
- Post-Graduation Work Permit Changes: An analysis of policy updates and their effects on the job market for international graduates.
- Global Appeal Challenges: A discussion of how these policies impact Canada’s reputation as a top education destination.
- Blame and Accountability: The ongoing debate between federal and provincial governments over responsibility for the crisis.
- Future Prospects for Canada’s Education System: Expert predictions on what lies ahead for post-secondary institutions.
The Importance of International Students
International students are vital to the survival of many Canadian post-secondary programs. According to Pari Johnston, president of Colleges and Institutes Canada, these students help sustain courses that might otherwise be financially unviable, especially in high-cost programs like trades and healthcare. “There aren’t always enough Canadian students to fill a program,” she told CBC’s The House.
Western University president Alan Shepard echoed this sentiment, noting that international students enrich the academic environment by bringing diverse perspectives. “I want students from Canada to have the opportunity to be in classes with people from different economic systems, different religious systems, different races from all over the world,” he said.
Impact on Institutions and Communities
The ramifications of these cuts extend beyond the classroom. Colleges and universities, particularly in remote areas, face an existential threat. Reduced enrolment of international students means less revenue from tuition fees, which has been a critical source of funding for post-secondary institutions as provincial support dwindles.
Ontario’s Seneca Polytechnic announced the temporary closure of one of its campuses, citing declining international enrolment. Meanwhile, Mohawk College projects a $50 million deficit for the 2025-2026 academic year. Across Ontario – home to 40 percent of Canada’s university system – post-secondary institutions are grappling with significant financial losses, with ten universities collectively reporting a deficit of over $300 million in 2023-2024 and projecting $600 million in 2024-2025, according to Steve Orsini, president of the Council of Ontario Universities.
The situation is dire for students, too. Fourth-year sociology student Caitlin Kellendonk at Vancouver Island University revealed that reduced course offerings mean she must take another year to complete her degree. Other students face limited access to critical services, like counselling and library appointments, as institutions slash their budgets.
Post-Graduation Work Permit Changes
Further complicating matters, the federal government’s decision to restrict post-graduation work permits is seen as a “bigger blow” to the sector. Under the new policy, only graduates from programs linked to long-term labour shortages will be eligible for work permits of up to three years. Johnston criticized this approach, arguing that it fails to consider Canada’s regional labour needs. “It’s a blow to our ability to attract talent and support Canada’s economic growth,” she said.
Impact on Canada’s Global Appeal
Once seen as a top destination for international students, Canada faces stiff competition from the US and the UK. ApplyBoard CEO Meti Basiri noted that Canada’s appeal has significantly declined. “Students around the world are rethinking their education journey in Canada,” Basiri said. His company’s analysis shows a projected 47 percent decrease in international study permits in 2024 compared to 2023, far exceeding the federal government’s projected 35 percent drop.
This shift is attributed to the perception that Canada is no longer as welcoming as it once was. “The message being sent to prospective students is that Canada is not as welcoming as it used to be,” Basiri said.
Blame and Accountability
Reducing study permits has sparked a blame game between federal and provincial governments. Immigration Minister Marc Miller described some educational institutions as “the diploma equivalent of puppy mills,” a remark that Pari Johnston said was “very harmful” and unfairly painted the entire sector with a broad brush.
Miller defended his stance, arguing that “some programs have to close, and there is a rationalization process that was important to be had.” He placed the responsibility for underfunding post-secondary education squarely on the provinces, particularly Ontario, where domestic tuition has been frozen since 2018-2019. Ontario Finance Minister Peter Bethlenfalvy fired back, blaming the federal government for “mismanaging the immigration file” and creating uncertainty in the sector.
Consequences for Students and Faculty
Budget shortfalls are hitting faculty and staff hard. Labour costs, which account for 70 percent to 75 percent of institutional expenses, are being reduced through hiring freezes, layoffs, and salary cuts. Camosun College in BC already anticipates a $5 million deficit, with fears of job losses looming.
Faculty at the University of Winnipeg are rethinking their winter semester plans in light of a hiring freeze on teaching and research assistants. Without extra support, faculty members are forced to simplify course assignments and evaluation criteria.
University of Windsor Vice-President Clinton Beckford warned that layoffs would be “immediate” and “ongoing,” impacting every category of employees. These financial constraints lead to larger class sizes, fewer course options, and reduced essential student services.
Future of Post-Secondary Sector
The path forward is uncertain. Experts warn that “a very, very unpleasant few years” lie ahead for Canada’s post-secondary education sector. Consultant Alex Usher, president of Higher Education Strategy Associates, believes there are only two options: increase public funding or raise domestic tuition fees.
“We’ve been able to pretend we’ve got a world-class university system for the last 15 years,” Usher said. “It’s been the international students that have kept it all afloat.” With that funding source drying up, he predicts a “bonfire of programs” at colleges, which are often more vulnerable than universities due to their reliance on international student tuition.
Canada’s post-secondary sector faces turbulent times as international student permit cuts, provincial funding freezes, and restrictions on work permits converge to create a perfect storm. While the federal government argues that reform is necessary, critics warn that the fallout could harm not just colleges and universities but also students, faculty, and regional economies. Unless bold action is taken – either through increased public funding or higher domestic tuition – Canada’s education system risks losing its coveted competitive edge.
Frequently Asked Questions
Why is Canada cutting international student permits?
The federal government aims to address capacity constraints in housing, labor markets, and certain educational institutions. However, critics argue that these cuts overlook the economic and cultural contributions of international students, who are essential for sustaining programs and supporting the economy.
How will the cuts affect Canadian colleges and universities?
Reduced international student enrolment threatens institutions with budget shortfalls, leading to fewer course offerings, larger class sizes, campus closures, and staff layoffs. This is particularly challenging for schools in smaller communities reliant on international tuition revenue.
What changes are being made to post-graduation work permits?
Only graduates from programs linked to long-term labor shortages will qualify for work permits of up to three years. Critics argue this policy fails to address regional workforce needs and undermines Canada’s ability to attract and retain global talent.
How do these changes impact Canada’s global appeal for students?
Canada is perceived as less welcoming due to these policies, causing a decline in its global appeal. With rising competition from countries like the US and UK, prospective students are reconsidering Canada as an education destination.
What are the possible solutions to this crisis?
Experts suggest two main options: increase public funding to support post-secondary institutions or allow domestic tuition fees to rise. Both measures would help offset financial losses and stabilize the sector, but require significant policy shifts.
