After years of relying on international students — who pay up to five times more in tuition than Canadians — some of the country’s top universities are making major budget cuts.
Driving the news: A now-year-old cap on the number of international students coming to Canada has forced post-secondary schools across the country to lay off workers, freeze new hires and cut programs and services, according to The Canadian Press.
- The Council of Ontario Universities — a group made up of 20 schools including the University of Toronto, Western University, and Queen’s University — says they are facing a combined loss of $330 million this fiscal year and $600 million next year.
Catch-up: Provinces like Ontario and BC boosted funding for schools after international study permits were cut by 35%, but with a freeze on domestic student tuition in Ontario, many post-secondary schools are still bleeding money.
- A 2023 report found that tuition paid by students coming from India alone contributed more cash to Ontario post-secondary schools than the provincial government.
Why it matters: International students became a way for colleges and universities to expand without more government funding or raising domestic tuition — now that the program has been curtailed, they will have to trim their budgets.
Zoom out: Ontario colleges are in the same boat. Sheridan College announced it is pausing 40 programs, Mohawk College laid off 20% of its admin team, and Seneca Polytechnic temporarily closed an entire campus.
- You might also like:
- Canadian lottery players score $1 million and second prize over the weekend
- Blue Monday: Today is the most depressing day of the year
Get smarter about what matters. Sign up for The Peak, a free five-minute daily email on Canadian business, tech, and finance that you’ll actually enjoy reading.