Two Ontario colleges – Loyalist College in Belleville and Northern College in Timmins – are facing major financial challenges after a sharp drop in international student enrolment triggered by the federal government’s cap on study permits.
On This Page You Will Find:
- Financial impacts on Loyalist and Northern College
- Details from KPMG and Deloitte reports
- IRCC student visa cap and PGWP rule changes
- Job cuts and union responses
- Broader challenges facing Ontario’s college system
According to consultant reports commissioned by the Ontario government, Loyalist could see its revenue decline by up to 60 per cent between 2025 and 2030, while Northern may face a 35 per cent drop. These reports, prepared by KPMG and Deloitte, highlight how dependent some colleges have become on international tuition fees to remain financially stable.
In a Globe and Mail article, it was revealed that the federal cap on student visas, introduced in 2024, is part of efforts to manage rapid population growth and ease pressure on housing. However, this has led to widespread disruption across Ontario’s college system, where foreign students have historically provided a significant revenue stream due to lower provincial funding and a freeze on domestic tuition fees since 2019.
Consultant Reports Reveal Bleak Financial Forecasts
The Deloitte report on Loyalist College projects a growing deficit, from $28 million to $41 million over five years, even with program and staffing cuts. Despite these cost-saving measures, the college is still expected to face a $30 million deficit by 2030.
Northern College’s KPMG report shows a reversal from an $8 million surplus in 2025 to a potential $8 million deficit by 2030. If the college implements the recommended cuts, it may return to a balanced budget, but only with significant restructuring.
The recommendations include:
- Cutting programs popular with international students
- Reducing staff
- Selling or leasing campuses and facilities to free up funds
Northern College may need to close or lease its Kirkland Lake and Moosonee campuses to save over $1 million in operational costs.
International Enrolment Drops Dramatically
International students made up 60 per cent of Northern College’s full-time student body before the federal cap. Loyalist College saw even higher numbers, with international students accounting for 84 per cent of enrolment in business programs.
Now, both colleges are cancelling dozens of programs no longer eligible for the Post-Graduation Work Permit (PGWP), particularly non-degree business diplomas, which have been stripped of work permit eligibility under new IRCC rules introduced in November 2024.
Student permit approvals fell by 70 per cent in the first half of 2025 compared to 2024, with 90,000 fewer study permits issued, according to Immigration, Refugees and Citizenship Canada (IRCC). As a result, Ontario colleges are rapidly cutting costs to stay afloat.
Job Losses and Labour Tensions Mount
According to the Ontario Public Service Employees Union (OPSEU), nearly 10,000 college faculty and staff have already lost or are expected to lose their jobs. In response, thousands of support staff went on strike in September 2025, demanding job security and a freeze on future layoffs or campus closures for three years.
The College Employer Council, representing all 24 Ontario public colleges, has called OPSEU’s demands unreasonable, citing the deep financial pressures colleges now face.
Broader Impact Across Ontario
At least 14 Ontario colleges, including Durham, Fanshawe, and Sault College, have undergone similar reviews as part of a provincial three-year effort to help colleges find long-term savings. All had previously relied on international students to balance their budgets.
Before the recent changes, international student fees at Northern College brought in almost $30 million in 2023–24. That figure is expected to drop to just $8.6 million by 2027–28.
Alex Usher, president of Higher Education Strategy Associates, said many colleges expanded quickly over the past five years using international tuition revenue, but will now struggle to operate at current levels. “Eventually, they will get back to the point where they do not have enough money to do the job the government has given to them,” he warned.
Frequently Asked Questions
Why are Ontario colleges losing so much revenue?
Many Ontario colleges rely heavily on international tuition fees, which have dropped sharply due to the federal student visa cap and PGWP rule changes.
What new federal rules are affecting international students?
As of November 2024, non-degree business programs became ineligible for PGWPs, making them less attractive to foreign students who want to work in Canada after graduation.
How are colleges responding to these challenges?
Colleges are cutting programs, reducing staff, suspending courses with low domestic enrolment, and even selling or leasing buildings to reduce operating costs.
Which colleges are most affected?
Loyalist College and Northern College have been hit hardest, but at least 14 public colleges across Ontario are undergoing financial reviews and implementing similar measures.
Are college staff losing their jobs?
Yes. According to OPSEU, nearly 10,000 college employees have been laid off or are at risk due to declining enrolment. Labour disputes are escalating across the province.
