Ontario’s 20 public universities are anticipating a staggering revenue loss of nearly $1 billion over the next two years due to the federal government’s cap on international students. In 2024-25 alone, these institutions expect to see a decline of over $300 million compared to 2023, a figure that doesn’t yet account for a recent 10% cut to new study permits.
Steve Orsini, president and CEO of the Council of Ontario Universities, criticized the federal government’s approach, describing it as a “blunt instrument” that unfairly affects all institutions rather than targeting specific issues.
The Council’s financial impact report highlights the significant strain reduced international enrolment will place on Ontario’s university sector. This follows a similar report from the Association of Atlantic Universities, which noted a loss of nearly 3,000 international students and an estimated $163 million in tuition revenue in that region.
In Ontario, if the current trend continues, the projected revenue loss could double to over $600 million next year. Orsini emphasized that the broad cap not only diminishes quantity but also quality, as it restricts access for highly skilled students from around the globe.
Earlier this year, Immigration Minister Marc Miller imposed a 35% reduction in new study permits to manage the rapid growth of international enrolment, which has tripled over the last decade. Miller cited concerns over the program’s integrity amid aggressive recruitment tactics.
Orsini noted that universities have responsibly increased international enrolment while ensuring adequate support for all students, with international students representing less than 20% of the total student population even before recent federal changes.
The new measures include provincial quotas for study permits, requiring provinces to allocate these among their post-secondary institutions. This has created confusion and uncertainty, damaging Canada’s reputation as a welcoming destination for international students. Despite being allocated 35,788 spots for 2024-25, Ontario universities have left 29% of these spaces unfilled.
Orsini called for a halt to further cuts in undergraduate programming and urged the federal government to ensure full allocations for master’s and PhD students. He stressed the importance of rebuilding Canada’s brand to attract top talent globally, which is vital for the country’s economic growth.
While Orsini did not specify which universities are most affected, he noted that the impact varies based on enrollment figures from the fall semester. Many institutions are grappling with financial challenges, leading to program cuts and delayed or canceled housing projects, even as they strive to provide essential support for students.
The Council of Ontario Universities is advocating for the protection of the current quota of international students, particularly for graduate programs, to mitigate these challenges.