Partnering foreign students contribute less to university coffers, intensifying budget strains
Canadian universities confront escalating financial issues due to a drop in international student enrollment and insufficient provincial funding.
Universities Canada, an educational institution lobby group, has identified both factors as contributing to ongoing budgetary difficulties faced by post-secondary institutions. Gabriel Miller, the organization's president, asserts that changes in international student policies and reduced permits have strained the sector's financial stability.
"We've been dealt a bad hand on international students, but the real problem is that governments have been gambling with higher education's future for over a decade," Miller explains. The dwindling number of opportunities for future students seeking university education is becoming increasingly apparent, he adds, as students lack access to a sufficient number of places due to larger class sizes.
Miller points out that budgetary concerns are prevalent across the country, with several universities projecting significant deficits. For instance, McGill University anticipates a $45 million deficit in the upcoming fiscal year, in part due to declining international student enrollment. The University of Waterloo plans to cut spending by $42 million this year, facing a $75 million deficit, and the University of Regina is raising tuition by four percent, grappling with decreased international student enrollment and flat domestic enrollment.
Miller notes that this predicament results in a severe loss of talent, with detrimental effects on both revenue and opportunities for Canadian students. Mary Feltham, chair of the Canadian Federation of Students, shares similar concerns, asserting that reports of program cuts and reduced on-campus services are becoming increasingly common.
"Now we're seeing a decline in services offered for everyone, a decline in jobs, a decline in different types of programs, which is impacting the ability for people to get an education and then contribute back to their province and country," Feltham said.
The Canadian government has established a target of 437,000 study permits nationwide this year, a 10% reduction from 2024. Though international tuition fees vary by school, they typically range from four to five times that of domestic students. In response, Immigration Minister Lena Metlege Diab stated via email that Canada values the substantial contributions of international students but admitted encountering sustainability challenges within the program. The minister is eager to address concerns and ensure the continuation of Canada's attraction to top talent, while seeking a meeting with Universities Canada, as requested.
Feltham discloses that the Canadian Federation of Students has been advocating for improvements in post-secondary funding for years, expressing frustration with international students serving as a scapegoat or an overrelied revenue source for universities and colleges. The organization emphasizes the need for governments to provide proper funding to these institutions to address the budgetary issues effectively.
"The ongoing financial difficulties in Canadian universities, as identified by Universities Canada, are not solely due to changes in international student policies, but also because of insufficient provincial funding and reduced permits," Miller explained. The consequences of these financial strains are far-reaching, as evidenced by the increasing scarcity of educational opportunities for future students and the downsizing of various programs and services in institutions like McGill University, the University of Waterloo, and the University of Regina.
