Canada’s Colleges Face Financial Crisis as International Student Numbers Fall
The colleges and institutes in Canada are seeing a sharp decline in the number of student enrolment due to tight budget, program shortages and campus stability. Two colleges– Loyalist College and Northern College in Ontario, Canada are already facing a major fiscal crisis amidst the ongoing reduction in the number of students planning to study in Canada. It points towards the fact that many top universities in Canada depend largely on the tuition fee from international students to function smoothly. In this article, we will explore the causes of the decline in international student enrolment, financial impacts (in CAD to INR) and strategies for recovery in the educational sector of Canada.
This Story also Contains
- Why International Student Enrollment Dropped in Canada?
- How much is the projected financial loss? (CAD to INR)
- What This Means for Students & Staff?
- How can the situation improve for the colleges and institutes in Canada?
- Conclusion
Why International Student Enrollment Dropped in Canada?
These are the major reasons why Canada is seeing a drop in international student enrolment.
Federal permit caps and changes in the immigration policies
In January 2024, the Canadian federal government implemented a cap on student visa for Canada to approximately, 360,000 annually, minimizing the student enrolment by 35%. This move was a step to curb the population outburst and accommodation pressure in Canada. Consequently, within the first half of 2025, study visa Canada approvals dropped up to 70%.
Loss of Post-Graduation Work Permit (PGWP)
One of the key reasons why students wish to get admission in the colleges and institutes in Canada is to get the Post-Graduation Work Permit (PGWP). With time, a lot of programs have lost their eligibility for post study work visa in Canada, impacting the decision of international students to study in Canada. Another reason can be the cancellation of several non-degree business diplomas and other programs by several Canadian universities.
Heavy Reliance on International Tuition Revenue
The colleges and institutes in Canada depend greatly on tuition fees of international students, so decline in international student enrolment straightaway means the functioning of these colleges get hampered. The Northern college has around 60% international students, while around 84% business program students are international students at Loyalist college.
Also Read: Canada vs India
How much is the projected financial loss? (CAD to INR)
To better understand the financial impact, here are the projected deficits in Canadian Dollars (CAD) and Indian Rupees (INR). As of 2025, 1 CAD ≈ ₹61 INR.
As per the financial forecasts for the Loyalist college, even after taking strong cost-cutting measures, the annual financial deficit has increased from CAD 28 million (≈ ₹171 crore) to CAD 41 million (≈ ₹250 crore) within five years.
It is expected that the Northern college will reach from USD 8 million surplus in 2025 to CAD 8 million (≈ ₹49 crore) deficit by 2030.
The conversion of CAD to INR gives a clear picture of the huge financial loss even from the Indian currency perspective.
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What This Means for Students & Staff?
The continuous financial burdens on Canada colleges have several repercussions for the students and staff. These include:
Fewer study program choices: As many of the universities in Canada have decided to cancel many courses and programs, this will reduce the study options for international students, especially the ones who wanted to take admission in those specific courses.
More uncertainty for staff: The job security for the staff could get impacted due to the large number of layoffs, program cuts, and campus restructuring, affecting the overall education quality of Canada.
University reputation affected: The reputation of educational institutions gets hampered which can’t deliver the promised programs, impacting the recruitment of staff.
Also Read: Canada IRCC Flags 10,000 Fake Student Acceptance Letters Amid Stricter Verification
How can the situation improve for the colleges and institutes in Canada?
Following are some effective strategies that the federal government in Canada can implement to recover from the current financial crisis.
Diversify revenue streams: They can boost domestic student enrolment till the time international student enrolment does not get better by maximizing industry partnerships
Cost rationalization: Focus on reducing unused facilities, administrative staff and allocate more resources to core academic staff.
Policy Engagement and Advocacy: Advocate PGWP restoration for major study programs and seek more flexible study permit caps. Maintaining emergency funding is also required.
Academic realignment and innovation: Bring more in-demand study programs in tech, health, and green economy. Expanding online or hybrid programs for international students can also help.
Strategic Mergers & Alliances: The government can also think of merging smaller colleges or partnering with universities to cut down the cost.
Conclusion
The international student enrolment drop in Canada has huge economic and educational consequences. With the two colleges in Ontario facing financial deficits running into tens of millions of CAD (CAD to INR value in hundreds of crores), the need of the hour is to immediately bring reforms in policies and financial restructuring. Canada can regain its place as a top study abroad destination by aligning immigration, education, and innovation policies, offering both career and financial stability to international students.
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Frequently Asked Questions (FAQs)
Q: Are international students declining in Canada?
A:
Yes, international students are declining in Canada, resulting in several universities in Canada facing financial difficulties and cancellation of study programs across the country.
Q: Is Canada rejecting 80% of Indian student visas?
A:
Yes, in 2025, the Indian student visa rejections increased to up to 80%. This has been the highest in over a decade.
Q: Why are Canadian universities struggling?
A:
The postsecondary education sector is struggling in Canada. This is due to the immigration policy changes, and financial restructuring going on in the universities.
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