Ontario Universities Face $1B Revenue Loss Amid Decline in International Students

Ontario universities are facing significant financial challenges as a result of the federal government’s recent cap on international students. According to projections by the Council of Ontario Universities, the province’s universities could lose nearly $1 billion in revenue over the next two years. This revenue loss stems from the decline in international student enrollment, a situation that is expected to worsen with additional cuts to study permits recently announced by the federal government.

The Impact of International Student Decline

The sharp decline in international student enrollment has had a ripple effect on the financial stability of universities across Ontario. The federal government’s decision to reduce the number of study permits by 35% over the next two years has been a major contributing factor. Ontario’s 20 public universities anticipate a revenue loss of over $300 million in the 2024-25 academic year, and this is projected to double to $600 million in 2025 if current trends continue.

Steve Orsini, president and CEO of the Council of Ontario Universities, emphasized that the federal government’s approach has negatively impacted not just the quantity, but also the quality of international students. “By targeting everyone rather than addressing the actual bad actors, we’ve affected the ability of highly skilled and top students to study in Canada,” he said.

Federal Policies and Their Consequences

Earlier this year, Immigration Minister Marc Miller announced the reduction in study permits to curb the rapid growth in international student enrollment, which had tripled in the past decade, reaching one million students in 2023. According to Miller, this growth had been driven by aggressive recruiting tactics by educational institutions and unregulated foreign agents, who often presented studying in Canada as a pathway to permanent residency.

Despite these changes, Orsini noted that Ontario universities had only modestly increased their international student intake and had ensured appropriate support systems were in place. Before the new measures, international students accounted for less than 20% of Ontario’s total student population.

Allocated Quotas and Unused Spaces

Under the new federal guidelines, each province is now responsible for allocating study permits to its educational institutions. Ontario universities were assigned 35,788 spots for the 2024-25 academic year. However, 29% of these spots remain unused, highlighting the growing challenge for universities to attract international students.

The federal government has also increased the cost-of-living financial requirement for international students and imposed tighter restrictions on work permits for graduates. These changes have created confusion and have hurt Canada’s reputation as a welcoming destination for international students.

Financial Struggles of Ontario Universities

Ontario universities are now struggling to manage the revenue shortfall caused by declining international enrollment. In addition to these enrollment cuts, universities have faced years of rising operational costs and a freeze on tuition fees. Although the Ontario government recently provided funding for STEM programs, many universities are reporting financial deficits.

Orsini warned that universities might be forced to cut programs and services. Eight student housing projects have already been delayed or canceled due to financial constraints, despite the universities’ commitment to supporting their student population, including providing housing.

Request for Government Intervention

The Council of Ontario Universities has called on both the provincial and federal governments to protect the current quota of international students, particularly for master’s and PhD programs. Orsini stressed that attracting top talent from around the world is crucial for Canada’s economic growth and prosperity.

“We need the federal government to collaborate with provinces and higher education institutes to restore Canada’s image and continue attracting the best and brightest students,” Orsini said.

The Broader Impact on Canadian Universities

Ontario is not alone in facing the financial consequences of declining international student enrollment. A recent report from the Association of Atlantic Universities revealed that the region has lost nearly 3,000 international students, resulting in a tuition revenue shortfall of $163 million. This indicates that the issue extends beyond Ontario and poses a broader challenge for Canada’s education sector.

Quick Facts

• Ontario universities may lose nearly $1 billion in revenue over the next two years.
• Federal cuts to study permits will result in a projected loss of $300 million in 2024-25.
• International student enrollment in Ontario has been reduced by 35% over two years.
• 29% of study permit quotas for 2024-25 remain unused in Ontario.
• Ontario universities are asking for government intervention to protect international student quotas.

Conclusion

For those planning to study abroad, navigating these changes can be challenging. Eduland Immigration, known as the best immigration consultant in Chandigarh, can guide students through this complex landscape. With over 17 years of experience, Eduland specializes in study visas, offering expert advice tailored to Canada’s evolving immigration policies. From understanding new work permit rules to meeting language requirements, Eduland helps students make informed decisions about their education abroad.

News Source:

https://www.thestar.com/news/canada/drop-in-international-students-leads-ontario-universities-to-project-1b-loss-in-revenues