OTTAWA — Canadian universities are facing significant financial challenges due to a sharp decline in enrolment from international students, who traditionally pay higher tuition fees. According to Universities Canada, insufficient provincial operating grants compound the financial difficulties for post-secondary institutions. President Gabriel Miller noted that the revenue generated from international student tuition had been a crucial financial buffer, but new regulations, including a reduction in study permits, are now jeopardizing this funding source.
Miller expressed concern about the long-term implications of these budgetary constraints, saying, "We’ve been dealt a bad hand on international students, but the real problem is that governments have been gambling with the future of higher education for more than a decade." He warned that a growing "opportunity gap" will emerge, as prospective students may find fewer available spaces and larger class sizes due to financial limitations. This breakdown in the agreement between government support and family contributions to education could have lasting negative effects on access to university education.
The financial situation is remarkably similar across the country. For instance, McGill University anticipates a $45 million deficit for the next fiscal year, primarily attributed to falling international enrolment figures. Similarly, the University of Waterloo is looking to reduce expenditures by $42 million this academic year as it grapples with a $75 million deficit. The University of Regina is increasing tuition by four percent amidst stagnant domestic enrolment and a significant decline in international students, further compounding its fiscal challenges.
Miller emphasized the talent loss resulting from the decreasing numbers of international students, stating, "We are seeing a severe loss of talent, which is greater than anything most people anticipated." This decline not only impacts university revenue but also limits opportunities for Canadian students, who benefit from the diverse perspectives and economic contributions of international students.
Mary Feltham, chair of the Canadian Federation of Students (CFS), reported ongoing cuts to programs and on-campus services as a direct result of the decline in international enrolment. She highlighted the broader impacts of this trend, noting that it illustrates a domino effect, leading to decreased job availability and a reduction in various educational programs. "Now we’re seeing a decline in services offered for everyone, impacting the ability for people to get an education and then contribute back to their province and country," Feltham said.
The government has set a target of 437,000 study permits for this year, marking a ten percent decrease compared to 2024. Previously, Ottawa introduced a cap on study permits in 2024, which contributed to a dramatic 40 percent drop in international student enrolment. Officials indicated that this reduction has helped alleviate pressures within the rental housing market in cities with high concentrations of students.
Tuition fees for international students vary across institutions, but are typically four to five times higher than those for domestic students. An emailed statement from a spokesperson for Immigration Minister Lena Metlege Diab confirmed that Canada recognizes the substantial advantages that international students offer but acknowledged the sustainability issues facing the program.
The statement further indicated that the new minister is eager to engage with stakeholders to address existing concerns while ensuring that Canada remains an attractive destination for top talent. Miller pointed out that Universities Canada has formally requested a meeting with the minister, emphasizing that while the cap on enrolment is not the central issue, the need for stability in international student rules is critical for maintaining Canada's competitive edge.
Feltham highlighted that the CFS is actively lobbying all levels of government to improve funding for post-secondary education, pointing out that they had forewarned about these impending challenges for years. "It’s just really frustrating to see because international students have often been used as a scapegoat for these problems or been used as cash cows," she noted. "Universities and colleges have really relied on them to be a source of income, which is also not appropriate, and this is why we’ve been asking for governments to properly fund these institutions."
