Federal changes in January imposing a 35% cap on international study permits are projected to cause financial losses of more than $300m in 2024/25, doubling to more than $600m the following year, the organisation representing Ontario’s universities has predicted.
The losses total nearly $1bn in the first two years alone and don’t account for the impact of the most recent policy restrictions further reducing the cap and including postgraduate students, among other changes.
The projected losses don’t include the impact of additional measures announced in September, which impose a further 10% reduction on the cap and include master’s and doctoral students, alongside a raft of legislative changes impacting PGWP eligibility.
“While we recognise the federal government had to address the bad actors that recklessly increased international student enrolment without the supports, this has resulted in significant collateral damage to universities, which will have untold implications for years to come,” said Steve Orsini, Council of Ontario Universities president.
The projected losses are based on universities’ financial predictions, with 10 of the provinces 24 publicly funded universities facing more than $300m in deficits in 2023/24, according to COU.
“Ontario universities and colleges are staring down a perfect storm,” Isaac Garcia-Sitton, executive director, international student enrolments at Toronto Metropolitan University, told The PIE News.
“The financial challenges we’re facing now are not just short-term – they are the result of long-term structural neglect from provincial funding policies,” he added.
The Ontario government’s 10% cut and freeze of domestic tuition fees in 2019, coupled with rising inflation, has created a challenging financial environment for Ontario’s universities that have increasingly relied on international student fees.
According to Orsini, “Ontario’s universities have only modestly increased international student enrolment over the years,” representing less than 20% of the total student body at Ontario’s universities.
However, average international undergraduate fees in Ontario this year were $42,690, compared to the average domestic undergraduate student paying $7,530, according to Statistics Canada.
The financial challenges we’re facing now are not just short-term – they are the result of long-term structural neglect from provincial funding policies
Isaac Garcia-Sitton, Toronto Metropolitan University
“The reliance on international students to backfill chronic underfunding was never a sustainable solution. Now, with these recent policy changes, the cracks in the system are becoming gaping holes,” said Garcia-Sitton.
On top of financial deficits, stakeholders are concerned about Canada maintaining its reputation as a quality study destination, with Graham Barber, former CEO of Universities Canada, saying the country had “shot itself in the foot in a race for global talent”.
While understanding the government’s need to curb irresponsible practices, stakeholders have called for a more nuanced solution, “targeting institutions with unsustainable growth patterns, while continuing to support universities with a long history of responsible internationalisation”, said Garcia-Sitton.
COU is urging the province to protect Ontario’s existing allocation of provincial attestation letters from further cuts and ensure the full allocation for master’s and PhD students go to Ontario universities.
Despite the scale of the challenges, some industry-leaders believe the sector has been afforded an opportunity to “recalibrate” following a period of exponential growth.
“By forming consortia, sharing resources, and deepening partnerships with industry, institutions can weather the storm while continuing to deliver high-quality education.
“Universities and colleges that innovate, diversify their offerings, and strengthen their global networks will emerge more resilient and future-ready,” said Garcia-Sitton.
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