Canada’s decision to reduce the number of international student study permits has created challenges for the country’s post-secondary education sector. Applications to colleges and universities have dropped by 54 percent, and visa targets for 2025-2026 have been reduced to 437,000, down from 485,000 in 2024.
International students are a critical source of revenue for many programs, especially in high-cost fields like trades and healthcare. Reduced enrolment threatens the financial viability of these programs and the institutions that host them.
Colleges and universities in remote areas are particularly vulnerable. Institutions across Ontario, which houses 40 percent of Canada’s university system, face financial difficulties. Ten universities reported a collective deficit exceeding $300 million for 2023-2024, with projections reaching $600 million for 2024-2025.
Seneca Polytechnic in Ontario has temporarily closed one of its campuses due to declining international enrolment. Mohawk College is projecting a $50 million deficit for the upcoming academic year. Reduced tuition revenue is forcing institutions to slash budgets and reduce services.
Budget shortfalls have also led to hiring freezes and layoffs. Due to limited resources, faculty and staff at institutions like the University of Winnipeg are simplifying course assignments and evaluation processes. Camosun College in British Columbia expects a $5 million deficit, and potential job losses are looming.
Students also feel the effects—limited course offerings, reduced services, such as counseling and library access, and delayed degree completion.
New restrictions on post-graduation work permits, which reduce opportunities for international students, add to the sector’s challenges. Only graduates from programs linked to long-term labor shortages are eligible for permits for up to three years.
Canada’s appeal as a destination for international education is diminishing, with students increasingly choosing alternatives like the US and the UK. Critics warn that Canada’s post-secondary sector will continue to face significant financial and operational challenges unless public funding increases or domestic tuition fees rise. Without urgent reforms, the country risks losing its competitive edge in global education.
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